scholarly journals The effects of foreign shocks when interest rates are at zero

2017 ◽  
Vol 50 (3) ◽  
pp. 660-684 ◽  
Author(s):  
Martin Bodenstein ◽  
Christopher J. Erceg ◽  
Luca Guerrieri
Keyword(s):  
Interest Rates ◽  
Foreign Shocks

scholarly journals The Effects of Foreign Shocks When Interest Rates are at Zero

2009 ◽  
Vol 2009 (983) ◽  
pp. 1-51 ◽  
Author(s):  
Martin Bodenstein ◽  
◽  
Christopher J. Erceg ◽  
Luca Guerrieri
Keyword(s):  
Interest Rates ◽  
Foreign Shocks

scholarly journals The Effects of Foreign Shocks When Interest Rates are at Zero

2009 ◽  
Author(s):  
Martin Bodenstein ◽  
Christopher J. Erceg ◽  
Luca Guerrieri
Keyword(s):  
Interest Rates ◽  
Foreign Shocks

scholarly journals Interest Rates Targeting of Monetary Policy: An Open Economy SVAR Study of Malaysia

2014 ◽  
Vol 16 (1) ◽  
pp. 1 ◽  
Author(s):  
Zulkefly Abdul Karim ◽  
Bakri Abdul Karim
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Open Economy ◽  
Small Open Economy ◽  
Structural Var ◽  
Macroeconomic Fluctuations ◽  
Stabilization Policy ◽  
Macroeconomic Variables ◽  
Implementation Of Monetary Policy ◽  
Foreign Shocks

This paper examines the implementation of monetary policy during the interest rates targeting in a small-open economy (i.e. Malaysia) by using an open-economy structural VAR (SVAR) study. It tests the effect of foreign shocks upon domestic macroeconomic fluctuations and monetary policy, and examines how effective monetary policy is in influencing macroeconomic variables. The results show that during interest rates targeting, monetary policy plays a significant role in affecting macroeconomics variables. This finding suggests that monetary policy has an important role as a stabilization policy in a small-open economy.     

scholarly journals The Effects of Foreign Shocks When Interest Rates Are at Zero

2016 ◽  
Vol 2016 (983r) ◽  
pp. 1-34 ◽  
Author(s):  
Martin Bodenstein ◽  
◽  
Christopher J. Erceg ◽  
Luca Guerrieri
Keyword(s):  
Interest Rates ◽  
Foreign Shocks

scholarly journals How Important Are Foreign Shocks in a Small Open Economy? The Case of Slovakia

2009 ◽  
Vol 9 (1) ◽  
pp. 1850155 ◽  
Author(s):  
Roman Horvath ◽  
Marek Rusnak
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Open Economy ◽  
Small Open Economy ◽  
Monetary Shocks ◽  
Positive Role ◽  
Interest Rate Policy ◽  
Monetary Policy Shock ◽  
Foreign Shocks

In this article, we provide evidence on the nature and the relative importance of domestic and foreign shocks – with a focus on monetary shocks – in the Slovak economy based on the block-restriction vector autoregression model during the years 1999–2007. We document a well-functioning monetary transmission mechanism in Slovakia. Subject to various sensitivity checks, we find that contractionary monetary policy shock has a temporary negative effect on the degree of economic activity and price level. We find that using output gap instead of GDP alleviates the price puzzle. In general, prices are driven mainly by foreign factors and the European Central Bank monetary policy shock on Slovak prices is more powerful than that of the National Bank of Slovakia. The Slovak Central Bank interest rate policy seems to follow the ECB's interest rates. On the other hand, spectacular Slovak economic growth is primarily driven by domestic factors suggesting the positive role of recently undertaken Slovak economic reforms.

Economic effects of monetary policy in Russia: What do large datasets tell us?

2020 ◽  
pp. 31-53 ◽  
Author(s):  
Anna A. Pestova ◽  
Natalia A. Rostova
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
Exchange Rate Regime ◽  
Aggregate Demand ◽  
Economic Effects ◽  
Theoretical Concepts ◽  
Empirical Estimates

Is the Bank of Russia able to control inflation and, at the same time, manage aggregate demand using its interest rate instruments? In other words, are empirical estimates of the effects of monetary policy in Russia consistent with the theoretical concepts and experience of advanced economies? This paper is aimed at addressing these issues. Unlike previous research, we employ “big data” — a large dataset of macroeconomic and financial data — to estimate the effects of monetary policy in Russia. We focus exclusively on the period after the 2008—2009 global financial crisis when the Bank of Russia announced the abandoning of its fixed ruble exchange rate regime and started to gradually transit to an interest rate management. Our estimation results do not confirm standard responses of key economic activity and price variables to tightening of monetary policy. Specifically, our estimates do not reveal a statistically significant restraining effect of the Bank of Russia’s policy of high interest rates on inflation in recent years. At the same time, we find a significant deteriorating effect of the monetary tightening on economic activity indicators: according to our conservative estimates, each of the key rate increases occurred in March and December 2014 had led to a decrease in the industrial production index by about 0.2 percentage points within a year.

Perspectives on inflation Targeting Regime in Russia

2014 ◽  
pp. 107-121 ◽  
Author(s):  
S. Andryushin
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Short Term ◽  
Indirect Control ◽  
Financial Account ◽  
Domestic Prices ◽  
Macroeconomic Indicators ◽  
Private And Public

The paper analyzes monetary policy of the Bank of Russia from 2008 to 2014. It presents the dynamics of macroeconomic indicators testifying to inability of the Bank of Russia to transit to inflation targeting regime. It is shown that the presence of short-term interest rates in the top borders of the percentage corridor does not allow to consider the key rate as a basic tool of monetary policy. The article justifies that stability of domestic prices is impossible with-out exchange rate stability. It is proved that to decrease excessive volatility on national consumer and financial markets it is reasonable to apply a policy of managing financial account, actively using for this purpose direct and indirect control tools for the cross-border flows of the private and public capital.

Monetary policy regimes in Russia: Guidelines for furtherquantitative studies

2017 ◽  
pp. 38-60 ◽  
Author(s):  
A. Pestova
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rates ◽  
Quantitative Research ◽  
Policy Regimes ◽  
Policy Effects ◽  
Exchange Rate Targeting ◽  
Basic Parameters

This paper analyzes the basic parameters of monetary policy in 2000-2015 in Russia. We provide the overview of tools and objectives of monetary policy of the Bank of Russia and identify the periods of homogeneity of monetary policy regimes: from money base targeting to exchange rate targeting and finally, to interest rates policy. On the basis of this research we develop the recommendations for further quantitative research aimed at estimation of monetary policy effects in Russia.

Sign in / Sign up

Export Citation Format

Share Document