The Effectiveness of Monetary Policy in Small Open Economies is popular PDF and ePub book, written by Keyra Primus in 2016-09-20, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, The Effectiveness of Monetary Policy in Small Open Economies can be Read Online from any device for your convenience.
The Effectiveness of Monetary Policy in Small Open Economies Book PDF Summary
This paper examines the relative effectiveness of the use of indirect and direct monetary policy instruments in Barbados, Jamaica and Trinidad and Tobago, by estimating a restricted Vector Autoregressive model with Exogenous Variables (VARX). The study assumes that the central bank conducts monetary policy using a Taylor-type rule and it evaluates the effects of a reserve requirement policy. The results show that although a positive shock to the policy interest rate has a direct effect on commercial banks' interest rates, there is a weak transmission to the real variables. Furthermore, an increase in the required reserve ratio is successful in reducing private sector credit and excess reserves, while at the same time alleviating pressures on the exchange rate. The findings therefore indicate that central banks in small open economies should consider using reserve requirements as a complement to interest rate policy, to achieve their macroeconomic objectives.
Detail Book of The Effectiveness of Monetary Policy in Small Open Economies PDF
- Author : Keyra Primus
- Release : 20 September 2016
- Publisher : International Monetary Fund
- ISBN : 9781475537154
- Genre : Business & Economics
- Total Page : 39 pages
- Language : English
- PDF File Size : 19,5 Mb
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