scholarly journals Fleshing Out the Monetary Transmission Mechanism: Output Composition and the Role of Financial Frictions

2005 ◽  
Author(s):  
André Meier ◽  
Gernot J. Müller
Keyword(s):  
Financial Frictions ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Monetary Transmission Mechanism

scholarly journals Evolution of the Monetary Transmission Mechanism in the US: the Role of Asset Returns

2015 ◽  
Vol 52 (3) ◽  
pp. 226-243 ◽  
Author(s):  
Beatrice D. Simo-Kengne ◽  
Stephen M. Miller ◽  
Rangan Gupta ◽  
Mehmet Balcilar
Keyword(s):  
Asset Returns ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Monetary Transmission Mechanism ◽  
The Us

scholarly journals MONETARY TRANSMISSION MECHANISM UNDER DUAL FINANCIAL SYSTEM IN INDONESIA: CREDIT-FINANCING CHANNEL

2019 ◽  
Vol 4 (2) ◽  
pp. 251-278
Author(s):  
Reza Jamilah Fikri
Keyword(s):  
Monetary Policy ◽  
Error Correction ◽  
Financial System ◽  
Error Correction Model ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Correction Model ◽  
Monetary Transmission Mechanism ◽  
Financing Channel

The presence of Islamic and conventional banking in the dual financial system of Indonesia equally hold the role as financial intermediator which theoretically banks collect fund from the debitors to be distributed to creditors. However, along with the changing of time there has been a development in the financial industry, when financial deregulation occurs, where the role of providing credit is not only owned by the banks but also other financial institutions. As the result, banks are no longer considered as the center of financial intermediation but could be replaced by other financial instruments. This study aims to reconsider the role of banking as financial intermediation in the monetary transmission mechanism using three methodoligal approaches which  are Vector Autoregression and Vector Error Correction Model (VAR-VECM), Error Correction Model (ECM), and Autoregressive Distributed Lag (ARDL). The long-term results of ECM and VECM estimations both show that credit and finacing channel are still relevant to be employed in the monetary transmission mechanism after the development of financial sector and the change of monetary policy, yet only have an impact to economy and do not give effect to inflation. While the result of ARDL estimation indicates that none of the variables affect the  monetary policy objectives which means that credit and financing channel are considered to be getting weaker in the monetary transmission mechanism.   Keywords : Monetary Transmission Mechanism, Credit Channel, Dual Financial System JEL Classification: E51, E52, E58

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