Monetary transmission mechanism in the East African community : an empirical investigation

Hamid R. Davoodi; Shiv Dixit; Gabor Pinter

Do changes in monetary policy affect inflation and output in the East African Community (EAC)? We find that (i) Monetary Transmission Mechanism (MTM) tends to be generally weak when using standard statistical inferences, but somewhat strong when using non-standard inference methods; (ii) when MTM is present, the precise transmission channels and their importance differ across countries; and (iii) reserve money and the policy rate, two frequently used instruments of monetary policy, sometimes move in directions that exert offsetting expansionary and contractionary effects on inflation?posing ch

MoreLess

Year of publication:	2013
Authors:	Davoodi, Hamid ; Dixit, Shiv ; Pinter, Gabor
Publisher:	Washington, DC : IMF
Subject:	Geldpolitik \| Monetary policy \| Geldpolitische Transmission \| Monetary transmission \| Ostafrika \| East Africa

freely available

Full text |

More access options

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

subito order

I need help

Extent:	Online-Ressource (58 S.) graph. Darst.
Series:	IMF working papers. - Washington, DC : IMF, ZDB-ID 2108494-4. - Vol. 13/39 IMF Working Papers
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Description based upon print version of record Systemvoraussetzungen: Acrobat Reader Cover; Contents; I. Introduction; II. Conduct of Monetary Policy in the EAC; A. Instruments, Targets, and Goals; B. Monetary Policy Framework; Figures; 1. Monetary Policy: Instruments, Targets and Goals; 2. Inside the Black Box of the Monetary Transmission Mechanism; C. Stability of Money Multiplier and Velocity; 3. Velocity and Money Multiplier in the EAC; Tables; 1. Decomposition of the Money Multiplier and Velocity in the EAC; III. Channels of Monetary Transmission Mechanism; A. Money Channel; B. Interest Rate Channel; C. Exchange Rate Channel; D. Credit Channel; E. Asset Price Channel F. Expectation ChannelIV. Review of the Empirical Literature on MTM in EAC; A. Kenya; B. Tanzania; C. Uganda; D. Rwanda and Burundi; V. Empirical Methodology; A. Recursive Structural VAR; B. Bayesian VAR; C. Factor-Augmented VAR; VI. Data; VII. Empirical Results; A. Burundi; 4. SVAR Impulse Responses for Burundi; B. Kenya; 5. Testing the Interest Rate Channel in Burundi; 6. SVAR Impulse Response for Kenya; 7. Testing the Credit Channel in Kenya; 8. Testing the Exchange Rate Channel in Kenya; C. Rwanda; 9. SVAR Impulse Response for Rwanda; 10. Testing the Credit Channel in Rwanda; D. Tanzania E. Uganda11. SVAR Impulse Responses for Tanzania; 12. SVAR Impulse Responses for Uganda; F. Results from Variance Decomposition; VIII. Discussion and Conclusions; 2. Variance Decomposition; A. Interpreting and Summing Up Our Results; B. Confronting the Challenges; References; Appendixes; I. Literature Review on Monetary Transmission Mechanism in the EAC; II. Full Set of SVAR Impulse Responses; Appendix II: Figures; 1. SVAR Responses for Burundi; 2. SVAR Responses for Kenya; 3. SVAR Responses for Rwanda; 4. SVAR Responses for Tanzania; 5. SVAR Responses for Uganda; III. FAVAR and BVAR Results Appendix III: Figures1. Comparing Variants of VARs for Burundi; 2. Comparing Variants of VARs for Kenya; 3. Comparing Variants of VARs for Rwanda; 4. Comparing Variants of VARs for Tanzania; 5. Comparing Variants of VARs for Uganda Electronic reproduction; Available via World Wide Web
ISBN:	978-1-4755-3057-5 ; 978-1-4755-5349-9 ; 978-1-4755-3057-5
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009706783