Monetary Policy Transmission in the Eastern Caribbean Currency Union /

This paper empirically investigates international and domestic monetary policy transmission mechanisms in the Eastern Caribbean Currency Union (ECCU). We assess interest rate pass-through of both the U.S. policy rate and the ECCU minimum saving deposit rate (MSR) into domestic interest rates through...

Полное описание

Библиографические подробности
Главный автор: Myrvoda, Alla
Другие авторы: Reynaud, Julien
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2018.
Серии:IMF Working Papers; Working Paper ; No. 2018/070
Online-ссылка:Full text available on IMF
Описание
Итог:This paper empirically investigates international and domestic monetary policy transmission mechanisms in the Eastern Caribbean Currency Union (ECCU). We assess interest rate pass-through of both the U.S. policy rate and the ECCU minimum saving deposit rate (MSR) into domestic interest rates through the interest rate channel. While economic theory suggests that the international pass-through should be high in small open economies with fixed exchange rates and open capital accounts, our findings, based on regression analysis, point to a low long-run pass-through coefficient of the U.S. interest rate. The domestic transmission channel, however, is found to operate through changes in the MSR. The results hold for different interest rates (deposit and lending) and are supported by survey-based findings.
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Объем:1 online resource (30 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students