02063cas a2200253 a 4500 AALejournalIMF011316 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463921293 1018-5941 BD-DhAAL BD-DhAAL Mukherjee, Sanchita. Inflation Targeting and Monetary Policy Transmission Mechanisms in Emerging Market Economies / Sanchita Mukherjee, Rina Bhattacharya. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (27 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 In this paper we empirically examine the operation of the traditional Keynesian interest rate channel of the monetary policy transmission mechanism in five potential inflation targeting economies in the MENA region and compare it with fourteen inflation targeting (IT) emerging market economies (EMEs) using panel data analysis. Contrary to some existing studies, our empirical results suggest that private consumption and investment in both groups of countries are sensitive to movements in real interest rates. Moreover, we find that the adoption of IT did not significantly alter the operation of the interest rate channel in IT EMEs. Also, the interest rate elasticities of private consumption and private investment vary with the level of development of the domestic financial market. Finally, capital account liberalization have opposite effects on private consumption and private investment in the two groups of countries. Mode of access: Internet Bhattacharya, Rina. IMF Working Papers; Working Paper ; No. 2011/229 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/229/001.2011.issue-229-en.xml IMF e-Library