Have a personal or library account? Click to login
Measuring monetary policy by money supply and interest rate: evidence from emerging economies Cover

Measuring monetary policy by money supply and interest rate: evidence from emerging economies

Open Access
|Sep 2021

References

  1. ACOSTA-ORMAECHEA, S., COBLE, D., (2011). Monetary transmission in dollarized and non-dollarized economies: The cases of Chile, New Zealand, Peru and Uruguay. Washington: International Monetary Fund.
  2. ATKESON, A., CHARI, V. V., KEHOE, P. J., (2007). On the optimal choice of a monetary policy instrument. New York: National Bureau of Economic Research.10.3386/w13398
  3. BARTH, M. J., RAMEY, V. A., (2001). The cost channel of monetary transmission. NBER macroeconomics annual, 16, 199–240. DOI: 10.1086/65444310.1086/654443
  4. BATINI, N., TURNBULL, K., (2002). A dynamic monetary conditions index for the UK. Journal of Policy Modeling, 24(3), 257–281. DOI: 10.1016/S0161-8938(02)00104-710.1016/S0161-8938(02)00104-7
  5. BERNANKE, B. S., (1990). On the predictive power of interest rates and interest rate spreads: National Bureau of Economic Research.10.3386/w3486
  6. BERNANKE, B. S., MIHOV, I., (1998). Measuring monetary policy. The Quarterly Journal of Economics, 113(3), 869–902. DOI: 10.1162/00335539855577510.1162/003355398555775
  7. BHATTACHARYA, J., SINGH, R., (2008). Optimal choice of monetary policy instruments in an economy with real and liquidity shocks. Journal of Economic Dynamics and Control, 32(4), 1273–1311. DOI: 10.1016/j.jedc.2007.05.00710.1016/j.jedc.2007.05.007
  8. CERMEÑO, R., VILLAGÓMEZ, F. A., POLO, J. O., (2012). Monetary Policy Rules In A Small Open Economy: An Application to Mexico. Journal of Applied Economics, 15(2), 259–286. DOI: 10.1016/S1514-0326(12)60012-910.1016/S1514-0326(12)60012-9
  9. COVER, J. P., VANHOOSE, D. D., (2000). Political pressures and the choice of the optimal monetary policy instrument. Journal of Economics and Business, 52(4), 325–341. DOI: 10.1016/S0148-6195(00)00025-410.1016/S0148-6195(00)00025-4
  10. DE MELLO, L., MOCCERO, D., (2011). Monetary policy and macroeconomic stability in Latin America: The cases of Brazil, Chile, Colombia and Mexico. Journal of International Money and Finance, 30(1), 229–245. DOI: 10.1016/j.jimonfin.2010.08.00210.1016/j.jimonfin.2010.08.002
  11. DUMITRESCU, E.-I., HURLIN, C., (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450–1460. DOI: 10.1016/j.econmod.2012.02.01410.1016/j.econmod.2012.02.014
  12. FRIEDMAN, M., (1968). The role of monetary policy. American Economic Review, 58(1), 1–17.
  13. FURLANI, L. G. C., PORTUGAL, M. S., LAURINI, M. P., (2010). Exchange rate movements and monetary policy in Brazil: Econometric and simulation evidence. Economic Modelling, 27(1), 284–295. DOI: 10.1016/j.econmod.2009.09.00810.1016/j.econmod.2009.09.008
  14. GARDNER, G. W., (1983). The choice of monetary policy instruments in an open economy. Journal of International Money and Finance, 2(3), 347–354. DOI: 10.1016/S0261-5606(83)80008-410.1016/S0261-5606(83)80008-4
  15. GERLACH, S., TILLMANN, P., (2012). Inflation targeting and inflation persistence in Asia–Pacific. Journal of Asian Economics, 23(4), 360–373. DOI: 10.1016/j.asieco.2012.03.00210.1016/j.asieco.2012.03.002
  16. GLOCKER, C., TOWBIN, P., (2012). Reserve Requirements for Price and Financial Stability-When are they effective? International Journal of Central Banking, 8(1), 65–114.
  17. GONÇALVES, C. E. S., SALLES, J. M., (2008). Inflation targeting in emerging economies: What do the data say? Journal of Development Economics, 85(1–2), 312–318. DOI: 10.1016/j.jdeveco.2006.07.00210.1016/j.jdeveco.2006.07.002
  18. GRANGER, W. J. C., (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 424–438. DOI: 10.2307/191279110.2307/1912791
  19. HANDA, J., (2009). Monetary Economics (2nd ed.). Oxford: Routledge.
  20. JAWADI, F., MALLICK, S. K., SOUSA, R. M., (2014). Nonlinear monetary policy reaction functions in large emerging economies: the case of Brazil and China. Applied Economics, 46(9), 973–984. DOI: 10.1080/00036846.2013.85177410.1080/00036846.2013.851774
  21. LAURENT, R. D., (1988). An interest rate-based indicator of monetary policy. Economic Perspectives(Jan), 3–14.
  22. LIN, S., (2010). On the international effects of inflation targeting. The Review of Economics and Statistics, 92(1), 195–199. DOI: 10.1162/rest.2009.1155310.1162/rest.2009.11553
  23. LIN, S., YE, H., (2009). Does inflation targeting make a difference in developing countries? Journal of Development Economics, 89(1), 118–123. DOI: 10.1016/j.jdeveco.2008.04.00610.1016/j.jdeveco.2008.04.006
  24. MACKIEWICZ-ŁYZIAK, J., (2016). Active and Passive Monetary Policy in CEE Countries with Inflation Targeting: The Case of the Czech Republic, Hungary, and Poland. Eastern European Economics, 54(2), 133–152. DOI: 10.1080/00128775.2015.112678910.1080/00128775.2015.1126789
  25. MEMON, I. A., JABEEN, H., (2018). Monetary condition index and its changing transmission on macro-economic variables. Arab Economic and Business Journal, 13(2), 111–124. DOI: 10.1016/j.aebj.2018.10.00110.1016/j.aebj.2018.10.001
  26. PETERS, A. C., (2016). Monetary policy, exchange rate targeting and fear of floating in emerging market economies. International Economics and Economic Policy, 13(2), 255–281. DOI: 10.1007/s10368-014-0300-010.1007/s10368-014-0300-0
  27. PHIROMSWAD, P., (2015). Measuring monetary policy with empirically grounded restrictions: An application to Thailand. Journal of Asian Economics, 38, 104–113. DOI: 10.1016/j.asieco.2015.04.00510.1016/j.asieco.2015.04.005
  28. POOLE, W., (1970). Optimal choice of monetary policy instruments in a simple stochastic macro model. The Quarterly Journal of Economics, 84(2), 197–216. DOI: 10.2307/188300910.2307/1883009
  29. QAYYUM, A., (2002). Monetary conditions index: A composite measure of monetary policy in Pakistan. The Pakistan Development Review, 551–566.10.30541/v41i4IIpp.551-566
  30. ROMER, C. D., ROMER, D. H., (2004). A New Measure of Monetary Shocks: Derivation and Implications. The American Economic Review, 94(4), 1055–1084. DOI: 10.1257/000282804200265110.1257/0002828042002651
  31. SÁNCHEZ-FUNG, J. R., (2011). Estimating monetary policy reaction functions for emerging market economies: The case of Brazil. Economic Modelling, 28(4), 1730–1738. DOI: 10.1016/j.econmod.2011.03.00710.1016/j.econmod.2011.03.007
  32. SENSARMA, R., BHATTACHARYYA, I., (2016). Measuring monetary policy and its impact on the bond market of an emerging economy. Macroeconomics and Finance in Emerging Market Economies, 9(2), 109–130.10.1080/17520843.2015.1123743
  33. SIMS, C. A., (1972). Money, income, and causality. The American Economic Review, 62(4), 540–552.
  34. SIMS, C. A., (1992). Interpreting the macroeconomic time series facts: The effects of monetary policy. European Economic Review, 36(5), 975–1000. DOI: 10.1016/0014-2921(92)90041-T10.1016/0014-2921(92)90041-T
  35. SINGH, R., SUBRAMANIAN, C., (2008). The optimal choice of monetary policy instruments in a small open economy. Canadian Journal of Economics/Revue canadienne d'économique, 41(1), 105–137. DOI: 10.1111/j.1365-2966.2008.00457.x10.1111/j.1365-2966.2008.00457.x
  36. SUN, H., MA, Y., (2004). Money and price relationship in China. Journal of Chinese Economic and Business Studies, 2(3), 225–247. DOI: 10.1080/147652804200027612310.1080/1476528042000276123
  37. SVENSSON, L. E., (1997). Inflation forecast targeting: Implementing and monitoring inflation targets. European Economic Review, 41(6), 1111–1146. DOI: 10.1016/S0014-2921(96)00055-410.1016/S0014-2921(96)00055-4
  38. TODA, H. Y., YAMAMOTO, T., (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of econometrics, 66(1–2), 225–250.10.1016/0304-4076(94)01616-8
  39. WALSH, C. E., (2010). Monetary theory and policy (3rd ed.). Massachusetts: MIT press.
  40. WONG, M. C.-H., CLIFTON, M. E. V., LEON, M. H., (2001). Inflation targeting and the unemployment-inflation trade-off. Washington: International Monetary Fund.
  41. YAĞCıBAŞı, Ö. F., YıLDıRıM, M. O., (2017). Welfare Implications of Alternative Monetary Policy Rules: A New Keynesian DSGE Model for Turkey. Review of Economic Perspectives, 17(4), 363–379. DOI: 10.1515/revecp-2017-001910.1515/revecp-2017-0019
DOI: https://doi.org/10.2478/revecp-2021-0015 | Journal eISSN: 1804-1663 | Journal ISSN: 1213-2446
Language: English
Page range: 347 - 367
Submitted on: May 25, 2020
Accepted on: Jun 30, 2021
Published on: Sep 17, 2021
Published by: Mendel University in Brno
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2021 Trung Thanh Bui, Kiss Dávid Gábor, published by Mendel University in Brno
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.