Learning and the Signaling Effect of Monetary Policy

2021 ◽  
Author(s):  
Qiang Chen ◽  
Zechen Yin
Keyword(s):  
Monetary Policy ◽  
Signaling Effect ◽  
Effect Of Monetary Policy

scholarly journals The Transmission of Monetary Policy Shocks

2021 ◽  
Vol 13 (3) ◽  
pp. 74-107
Author(s):  
Silvia Miranda-Agrippino ◽  
Giovanni Ricco
Keyword(s):  
Monetary Policy ◽  
High Frequency ◽  
Domestic Demand ◽  
Monetary Policy Shocks ◽  
Policy Action ◽  
Signaling Effect ◽  
State Of The Economy ◽  
Policy Shocks ◽  
Effect Of Monetary Policy ◽  
Transmission Of Monetary Policy

Commonly used instruments for the identification of monetary policy disturbances are likely to combine the true policy shock with information about the state of the economy due to the information disclosed through the policy action. We show that this signaling effect of monetary policy can give rise to the empirical puzzles reported in the literature, and propose a new high-frequency instrument for monetary policy shocks that accounts for informational rigidities. We find that a monetary tightening is unequivocally contractionary, with deterioration of domestic demand, labor and credit market conditions as well as of asset prices and agents’ expectations. (JEL D82, D84, E32, E43, E52, E58, G12)

The time varying effect of monetary policy on stock returns

2017 ◽  
Vol 160 ◽  
pp. 54-58 ◽  
Author(s):  
Dennis W. Jansen ◽  
Anastasia Zervou
Keyword(s):  
Monetary Policy ◽  
Stock Returns ◽  
Time Varying ◽  
Effect Of Monetary Policy

scholarly journals Effectiveness of Monetary Policy Instruments on Economic Growth in Jordan Using Vector Error Correction Model

2017 ◽  
Vol 9 (11) ◽  
pp. 194
Author(s):  
Rami Obeid ◽  
Bassam Awad
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Policy Instruments ◽  
Short Term ◽  
Correction Model ◽  
Vector Error Correction ◽  
Real Gdp ◽  
Vector Error ◽  
Effect Of Monetary Policy

The global financial crisis emphasized the important role of the prudent monetary policy in supporting economic growth through maintaining price stability. The monetary policy operational framework that was designed in 2008 was updated to include more instruments for managing monetary policy learning from the crisis lessons. Several studies analyzed various dimensions related to economic growth in Jordan such as Abdul-Khaliq, Soufan, and Abu Shihab (2013) and Assaf (2014), there were no studies that investigated the effect of monetary policy on economic growth in Jordan, at least recently, however. The study aims at measuring the effect of monetary policy instruments on the performance of Jordanian economy. Using quarterly data covering the period (2005-2015), an econometric model was examined using Vector Error Correction Model to assess the impact of monetary policy instruments on economic growth. The foremost advantage of VECM is that it has a nice interpretation of long-term and short-term equations. The results showed the existence of positive long-term and short-term effects of monetary policy instruments on the growth of real GDP. The model included three monetary policy instruments besides money supply. They are required reserve ratio, rediscount rate and overnight interbank loan rates as independent variables, and the real GDP growth as a dependent variable. The stationarity of the model time series was addressed. In addition, the stability of the model was tested using stability diagnostics tools. The results showed also an existence of inverse relationship between rediscount rate and economic growth in Jordan over both long and short terms.

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