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Do interest rate controls work? : evidence from Kenya

Alper, C. Emre; Clements, Benedict J.; Hobdari, Niko; … - 2019

This paper reviews the impact of interest rate controls in Kenya, introduced in September 2016. The intent of the controls was to reduce the cost of borrowing, expand access to credit, and increase the return on savings. However, we find that the law on interest rate controls has had the...

Persistent link: https://www.econbiz.de/10012022041

The monetary policy credibility channel and the amplification effects in a semi-structural model

Chansriniyom, Thitipat; Epstein, Natan; Nalban, Valeriu - 2020

credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the … announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility …. We find that the extended model with credibility effects matches well the key macroeconomic data over specific past …

Persistent link: https://www.econbiz.de/10012391944

Monetary policy implementation : operational issues for countries with evolving monetary policy frameworks

Mæhle, Nils Øyvind - 2020

This paper discusses operational issues for countries that want to reform their monetary policy frameworks. It argues that stabilizing short-term interest rates on a day-to-day basis has significant advantages, and thus that short-term interest rates, not reserve money, in most cases should be...

Persistent link: https://www.econbiz.de/10012170148

Morocco's monetary policy transmission in the wake of the COVID-19 pandemic

Queyranne, Maximilien; Baksa, Dániel; Bazinas, Vassili; … - 2021

This paper finds that the neutral interest rate has been on a downward trajectory in Morocco since the global financial crisis and may have fallen in the wake of the pandemic. In that context, monetary policy transmission to output and prices appears relatively muted given limited exchange rate...

Persistent link: https://www.econbiz.de/10012796623

Financial Structure, Bank Lending Rates, and the Transmission Mechanism of Monetary Policy

Kourelis, Angeliki - 1994

The stickiness of bank lending rates with respect to money market rates is often regarded as an obstacle to the smooth transmission of monetary policy impulses. Yet, no systematic measure of the different degree of lending rate stickiness across countries has been attempted. This paper provides...

Persistent link: https://www.econbiz.de/10014396171

Monetary Transmission in Low Income Countries

Montiel, Peter - 2010

This paper reviews monetary transmission mechanisms in low-income countries (LICs) to identify aspects of the channels that may operate differently in LICs relative to advanced and emerging economies. Given the weak institutional frameworks, reduced role of securities markets, imperfect...

Persistent link: https://www.econbiz.de/10014397443

Negative monetary policy rates and portfolio rebalancing : evidence from credit register data

Bottero, Margherita; Minoiu, Camelia; Peydró, José-Luis; … - 2019

We study negative interest rate policy (NIRP) exploiting ECB's NIRP introduction and administrative data from Italy, severely hit by the Eurozone crisis. NIRP has expansionary effects on credit supply-- -and hence the real economy---through a portfolio rebalancing channel. NIRP affects banks...

Persistent link: https://www.econbiz.de/10012009439

Pledged collateral market's role in transmission to short-term market rates

Kumar, Manmohan S.; Goel, Rohit - 2019

In global financial centers, short-term market rates are effectively determined in the pledged collateral market, where banks and other financial institutions exchange collateral (such as bonds and equities) for money. Furthermore, the use of long-dated securities as collateral for short...

Persistent link: https://www.econbiz.de/10012021913

Market power and monetary policy transmission

Duval, Romain; Furceri, Davide; Lee, Raphael; Mendes … - 2021

We show that firms' market power dampens the response of their output to monetary policy shocks, using firm-level data for the United States and a large cross-country firm-level dataset for 14 advanced economies. The estimated impact of a firm's markup on its response to a monetary policy shock...

Persistent link: https://www.econbiz.de/10012605640

Heterogeneous Bank Lending Responses to Monetary Policy : New Evidence from a Real-time Identification

Bluedorn, John Christopher - 2013

We present new evidence on how heterogeneity in banks interacts with monetary policy changes to impact bank lending. Using an exogenous policy measure identified from narratives on FOMC intentions and real-time economic forecasts, we find much greater heterogeneity in U.S. bank lending responses...

Persistent link: https://www.econbiz.de/10014395177