European Parliament Library

The Monetary Transmission Mechanism in the Tropics :, A Narrative Approach, Andrew Berg, Luisa Charry, Rafael Portillo, Jan Vlcek

Label
The Monetary Transmission Mechanism in the Tropics :, A Narrative Approach, Andrew Berg, Luisa Charry, Rafael Portillo, Jan Vlcek
Language
eng
Abstract
Many central banks in low-income countries in Sub-Saharan Africa are modernising their monetary policy frameworks. Standard statistical procedures have had limited success in identifying the channels of monetary transmission in such countries. Here we take a narrative approach, following Romer and Romer (1989), and center on a significant tightening of monetary policy that took place in 2011 in four members of the East African Community: Kenya, Uganda, Tanzania and Rwanda. We find clear evidence of the transmission mechanism in most of the countries, and argue that deviations can be explained by differences in the policy regime in place
Bibliography note
Includes bibliographical references
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
The Monetary Transmission Mechanism in the Tropics :
Nature of contents
dictionaries
Responsibility statement
Andrew Berg, Luisa Charry, Rafael Portillo, Jan Vlcek
Series statement
IMF Working Papers
Sub title
A Narrative Approach
Table Of Contents
Cover; Contents; I. Introduction; II. The Stylized Facts; A. Structure of the Economy and the Financial Sector; Tables; Table 1. EAC4 - Selected Economic Indicators, 2011; Table 2. Economic Structure Indicators, 2011; Figures; Figure 1. EAC4 - Financial Depth Indicators; Table 3. Selected Financial Sector Indicators, 2011; B. Prices; C. Policy Regimes; Figure 2. EAC4 - Inflation (YoY, Percent); Table 4. EAC4 - Summary of Policy Regimes; Figure 3. EAC4 - Interbank Rates (Percent); Figure 4. Uganda - Selected Interest Rates (Percent)Box 1. EAC4 - Exchange Rate Arrangements and the Capital AccountTable 5. EAC4 - Monetary Policy Mandates and Instruments; Box 2. EAC4 - Monetary Policy Frameworks; III. The Event Study; A. The Run Up; Figure 5. World Commodity Prices (Index, Jan=100); Figure 6. EAC4 - Selected Economic Indicators (Part I); Figure 7. Kenya - Selected Interest Rates (Percent); Figure 8. Tanzania - Real Money Growth and Short-Term Interest Rates,; B. The Event; Figure 9. Rwanda - Real Money Growth and Short-Term Interest Rates; Box 3. An Overview of the Transmission Mechanisms of Monetary PolicyFigure 10. A Basic Diagram of the Monetary Transmission MechanismIV. The Outcome; Figure 11. EAC4 - Selected Economic Indicators (Part II); Figure 12. EAC4 - Money Market Interest Rates (Percent); Figure 13. EAC4 - Banking Interest Rates (Percent); Figure 14. EAC4 - Real Interest Rates and the Output Gap (Percent); Figure 15. EAC4 - Real Import Growth (YoY, Percent); Figure 16. EAC4 - Non-Food Inflation and the Output Gap (Percent); Figure 17. EAC4 - Interest Rates (Percent) and Exchange Rates; Figure 18. EAC4 - Headline Inflation and Exchange Rate Change (YoY, Percent)Figure 19. EAC4 - Interest Rates and Credit Growth (Percent)Table 6. EAC4 - Monetary Policy Transmission Channels; V. On The Role of Global Risk Appetite and Supply Shocks; Figure 20. EAC4 - Excess Reserves (Percent of Required Reserves); Figure 21. Emerging and Frontier Markets Exchange Rates, (Index); Figure 22. VIX (Index) and EAC4 Exchange Rates; VI. Conclusion; Figure 23. EAC4 - Headline and Core Inflation (YoY, Percent); References
Content