05119oam 22011054 450 991082736060332120240402044641.01-4623-6991-X97866128422381-4519-9635-71-4518-7146-51-282-84223-4(CKB)3170000000055166(SSID)ssj0000944158(PQKBManifestationID)11595732(PQKBTitleCode)TC0000944158(PQKBWorkID)11000830(PQKB)11203972(OCoLC)762251491(MiAaPQ)EBC1605869(IMF)WPIEE2008288(EXLCZ)99317000000005516620020129d2008 uf 0engurcnu||||||||txtccrIs Monetary Policy Effective When Credit is Low?1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (19 pages) illustrations (some color)IMF Working PapersIMF working paper ;WP/08/288Bibliographic Level Mode of Issuance: Monograph1-4519-1583-7 Includes bibliographical references.Intro -- Contents -- I. Background -- II. The Methodological Approach -- III. A Country-by-Country Analysis -- IV. A Panel Approach -- V. The Importance of The Exchange Rate Regime -- VI. Conclusions -- Tables -- 1. Panel VAR: Wald Test Results -- 2. Panel VAR: Floating Exchange Rate: Wald Test Results -- Figures -- 1. Selected Impulse Response Functions of a One Standard Deviation Shock to Interest Rate -- 2. Cross-Country Impact on Inflation of a 1 Percent Shock to Interest Rates -- 3. Panel VAR: Impulse Response Function of a One Standard Deviation Shock to Interest Rates -- 4. Panel VAR: Impulse Response Function of a Shock to Interest Rates -- 5. Panel VAR: Impulse Response Function of a Shock to Interest Rates -- References -- Annexes -- I. Description of the Data -- II. Monetary Policy Regimes -- III. Exchange Rate Regimes.Monetary policy, at least in part, operates through both an interest rate and credit channel. The question arises, therefore, whether monetary policy is a less potent a device in affecting output and inflation in countries that have low levels of credit and where investment and consumption are not financed by borrowing in local currency. This paper employs a Panel Vector Auto Regression approach to examine the empirical evidence in a broad sample of emerging market countries. The data suggests that the effectiveness of changes in policy interest rates in influencing the path of inflation appear to be unrelated to the level of credit and that, instead, the willingness to allow exchange rate flexibility is a far more important determining factor.IMF Working Papers; Working Paper ;No. 2008/288Monetary policyEconometric modelsCreditEconometric modelsInflation (Finance)Econometric modelsEconometricsimfForeign ExchangeimfInflationimfMacroeconomicsimfMoney and Monetary PolicyimfPrice LevelimfDeflationimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfTime-Series ModelsimfDynamic Quantile RegressionsimfDynamic Treatment Effect ModelsimfDiffusion ProcessesimfMonetary economicsimfCurrencyimfForeign exchangeimfEconometrics & economic statisticsimfCreditimfExchange rate arrangementsimfVector autoregressionimfProducer pricesimfPricesimfUnited StatesimfMonetary policyEconometric models.CreditEconometric models.Inflation (Finance)Econometric models.EconometricsForeign ExchangeInflationMacroeconomicsMoney and Monetary PolicyPrice LevelDeflationMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralTime-Series ModelsDynamic Quantile RegressionsDynamic Treatment Effect ModelsDiffusion ProcessesMonetary economicsCurrencyForeign exchangeEconometrics & economic statisticsCreditExchange rate arrangementsVector autoregressionProducer pricesPrices332.46DcWaIMFBOOK9910827360603321Is Monetary Policy Effective When Credit is Low4087554UNINA