01774cas a2200241 a 4500 AALejournalIMF000456 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854343 1018-5941 BD-DhAAL BD-DhAAL Vrolijk, Coenraad. Derivatives Effect on Monetary Policy Transmission / Coenraad Vrolijk. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (56 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines changes in the monetary policy transmission mechanism in the presence of derivatives markets. The effect of adding derivatives markets is analyzed independently for each of the main channels of monetary policy transmission: interest rates, credit, and exchange rates. Theoretically, derivatives trading speeds up transmission to financial asset prices, but changes in the transmission to the real economy are ambiguous. Using the structural vector autoregression methodology, an empirical study of the United Kingdom is used to assess the impulse responses of output and inflation, controlling for the size of the U.K. derivative markets. No definitive empirical support for a change in the transmission process is found. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1997/121 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/121/001.1997.issue-121-en.xml IMF e-Library