MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES
The transmission channels of monetary policy are used by central banks to accomplish the main objective of price stability in the context of sustainable economic growth. The importance of interest rate and exchange rate channels for the emerging countries Romania, Poland, Czech Republic and Hungary...
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| Format: | Article |
| Language: | English |
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Romanian Foundation for Business Intelligence
2013-06-01
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| Series: | Cross-Cultural Management Journal |
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| Online Access: |
http://seaopenresearch.eu/Journals/articles/CMJ2013_I1_5.pdf
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| _version_ | 1818528880045064192 |
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| author | Andreea ROŞOIU Iulia ROŞOIU |
| author_facet | Andreea ROŞOIU Iulia ROŞOIU |
| author_sort | Andreea ROŞOIU |
| collection | DOAJ |
| description | The transmission channels of monetary policy are used by central banks to accomplish the main objective of price stability in the context of sustainable economic growth. The importance of interest rate and exchange rate channels for the emerging countries Romania, Poland, Czech Republic and Hungary is analyzed by using Bayesian VAR approach with Diffuse priors over 1998Q1-2012Q3. Main result of the empirical study is that both channels are effective for the monetary policy transmission mechanism in Hungary and Czech Republic. In Romania and Poland they do not exhibit puzzles, but the impact of the macroeconomic variables is not very significant and shows very high volatility. In the context of monetary integration, exchange rate channel will become irrelevant when these countries adopt Euro currency. This change will lead instead to a powerful interest rate channel. |
| first_indexed | 2024-12-11T06:55:46Z |
| format | Article |
| id | doaj.art-f81c596d0dc8416786aeef5505842342 |
| institution | Directory Open Access Journal |
| issn | 2286-0452 |
| language | English |
| last_indexed | 2024-12-11T06:55:46Z |
| publishDate | 2013-06-01 |
| publisher | Romanian Foundation for Business Intelligence |
| record_format | Article |
| series | Cross-Cultural Management Journal |
| spelling | doaj.art-f81c596d0dc8416786aeef55058423422022-12-22T01:16:47ZengRomanian Foundation for Business IntelligenceCross-Cultural Management Journal2286-04522013-06-01XV13749cmj:y2013:i1:p37-49MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIESAndreea ROŞOIU0Iulia ROŞOIU1 The Academy of Economic Studies, Bucharest, Romania The Academy of Economic Studies, Bucharest, Romania The transmission channels of monetary policy are used by central banks to accomplish the main objective of price stability in the context of sustainable economic growth. The importance of interest rate and exchange rate channels for the emerging countries Romania, Poland, Czech Republic and Hungary is analyzed by using Bayesian VAR approach with Diffuse priors over 1998Q1-2012Q3. Main result of the empirical study is that both channels are effective for the monetary policy transmission mechanism in Hungary and Czech Republic. In Romania and Poland they do not exhibit puzzles, but the impact of the macroeconomic variables is not very significant and shows very high volatility. In the context of monetary integration, exchange rate channel will become irrelevant when these countries adopt Euro currency. This change will lead instead to a powerful interest rate channel. http://seaopenresearch.eu/Journals/articles/CMJ2013_I1_5.pdf Monetary policyTransmission mechanismBayesian VAR approachEmerging countriesInterest rate channelExchange rate channel |
| spellingShingle | Andreea ROŞOIU Iulia ROŞOIU MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES Cross-Cultural Management Journal Monetary policy Transmission mechanism Bayesian VAR approach Emerging countries Interest rate channel Exchange rate channel |
| title | MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES |
| title_full | MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES |
| title_fullStr | MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES |
| title_full_unstemmed | MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES |
| title_short | MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES |
| title_sort | monetary policy transmission mechanism in emerging countries |
| topic | Monetary policy Transmission mechanism Bayesian VAR approach Emerging countries Interest rate channel Exchange rate channel |
| url |
http://seaopenresearch.eu/Journals/articles/CMJ2013_I1_5.pdf
|
| work_keys_str_mv | AT andreearosoiu monetarypolicytransmissionmechanisminemergingcountries AT iuliarosoiu monetarypolicytransmissionmechanisminemergingcountries |