Monetary Transmission : Are Emerging Market and Low Income Countries Different? /

We use two alternative representations of the yield curve to test the functioning of the interest rate transmission mechanism along the yield curve based on government paper in a sample of emerging market and low-income countries. We find a robust link from shortterm policy and interbank rates to lo...

Полное описание

Библиографические подробности
Главный автор: Bulir, Ales
Другие авторы: Vlcek, Jan
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2015.
Серии:IMF Working Papers; Working Paper ; No. 2015/239
Online-ссылка:Full text available on IMF
Описание
Итог:We use two alternative representations of the yield curve to test the functioning of the interest rate transmission mechanism along the yield curve based on government paper in a sample of emerging market and low-income countries. We find a robust link from shortterm policy and interbank rates to longer-term bond yields. Two policy implications emerge. First, the presence of well-developed secondary financial markets does not seem to affect transmission of short term rates along the yield curve. Second, the strength of the transmission mechanism seems to be affected by the choice of the monetary regime: countries with a credible inflation targeting regime seem to have 'better behaved' yield curves than those with other monetary regimes.
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Объем:1 online resource (37 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students