This paper surveys recent advances in empirical studies of the monetary transmission mechanism (MTM), with special attention to Central and Eastern Europe. In particular, while laying out the functioning of the separate channels in the MTM, it explores possible interrelations between different...

We examine the expectational stability (E-stability) of rational expectations equilibrium under optimal interest rate rules in the context of the standard, "New Keynesian" model of the monetary transmission mechanism. We focus on the case where the monetary authority adds interest rate...

Economic theory suggests circumstances in which a rise in short term real interest rates can increase consumption, contrary to much conventional wisdom. This paper suggests that these circumstances are more likely to be prevalent in Japan and finds strong empirical evidence for a positive...

In this study, we seek to better understand the interest rate pass-through in five Central and Eastern European countries -- the Czech Republic, Hungary, Poland, Slovakia and Slovenia, the CEE-5. Our pass-through estimates for several retail rates are generally lower than those reported in the...

The characteristics of the interest rate pass-through in the Czech Republic, Hungary and Poland are studied making use of autoregressive distributed lags (ARDL) models. Significant differences are found across market interest rates and countries concerning long-run elasticities of market...

We examine the expectational stability (E-stability) of rational expectations equilibrium under optimal interest rate rules in the context of the standard, "New Keynesian" model of the monetary transmission mechanism. We focus on the case where the monetary authority adds interest rate...

The purpose of the present study is to explore the specific contributions of variousnominal and real rigidities in monetary DGE models in a systematic way and ina common framework. I will concentrate on a quite simple model setup in orderto find out the important transmission mechanisms at work....