Monetary Policy Effects on Output and Prices: International Evidence

Ćorić, Bruno; Perović, Lena Malešević; Šimić, Vladimir

doi:10.2139/ssrn.1997184

Cited by 4 publications

(2 citation statements)

References 36 publications

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“…We observe that crypto currencies do not affect the monetary system in its current form with the given dataset 9 . Also, if the number of participants in crypto trading increases at the current pace, the monetary system might get affected.…”

Section: Discussionmentioning

confidence: 74%

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Cryptocurrency Impact on India’s Monetary Policy

Sharma

2024

Preprint

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This study uses the Structural Factor Augmented VAR in exogenous variables (SFAVARx) approach to analyse the impact of cryptocurrency transactions on India’s major macroeconomic variables. Monthly data from May 2013 to October 2021 are sourced from the Reserve Bank of India and statista.com. The current form of cryptocurrency did not have a significant impact on inflation, production, the money supply, or major interest rates. However, given the increasing marginal participation in the crypto market, these important macroeconomic variables can be adversely affected in the future. The Central Bank Digital Currency (CBDC) with features related to India is being proposed as a proactive measure.

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Section: Discussionmentioning

confidence: 74%

“…We have used PCA to generate our factors, pioneered byPearson (1901) and suggested byNg & Perron (2001). The factors are derived from the standardised9 and stationary series and based on the maximum absolute loadings value. Each variable is assigned to a broader macro factor.…”

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confidence: 99%

Cryptocurrency Impact on India’s Monetary Policy

Sharma

2024

Preprint

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Modelling the monetary policy transmission on the manufacturing output: Evidence from the fastest growing Indian economy

Sankaran

Arjun

Vadivel³

2020

Journal of Public Affairs

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The existing literature portrays that the instruments of monetary policy, such as interest rate, money supply, and price have a direct bearing on economic growth and social welfare. Against this background, the present study investigates the monetary policy transmission on manufacturing output in one of the fastest‐growing economies—India. Highlighting how the Central Bank works in a political–economic context, the precise research question used entails—how does monetary policy affect the manufacturing output in India? And what is the transmission channel and level of magnitude? To address these questions, we employed autoregressive distributed lag bounds testing for co‐integration on the time series data collected from World Development Indicators and International Finance Statistics for the period from 1980 to 2018. The model estimation affirms the presence of a co‐integrating relationship among the variables. In the short run, we have a mixed result of relationship among determining variables and manufacturing output, while in the long run, the lending rate has positive and the exchange rate has significant relationships among the variables. The variables such as consumption and gross capital formation have insignificant influence even though negative. The causality test reveals unidirectional short‐run causality stemming from lending rate to industrial output testifying lending rate‐driven growth. In a nutshell, the lending rate has long‐term positive relationship with that of industrial output, and the functional independence of the Central Bank has long‐term consequences on output and this requires a right chord of balance to be struck between political motives and the RBI's autonomy.

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Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria

et al. 2018

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The goal of this study is to assess the industry effects of monetary policy transmission channels in Nigeria within the period 1981-2014. Techniques of analysis employed in the study are the Johansen cointegration and the error correction model (ECM). Our regression estimates reveal that the private sector credit, interest rate, and exchange rate channels have negative effects on real output growth, both in the long run and in the short run. The results further show that, relatively, the degrees of the established effects are higher in the long run than in the short run. We employed the Johansen cointegration approach to determine the nature of relationship that exists between our dependent variable and the independent variables. The results show that, in the Nigerian case, monetary policy transmission channels jointly have a long-run relationship with real output growth of the industrial sector, and disequilibrium in the system is corrected at the speed of 72.2% annually.

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Monetary Policy Effects on Output and Prices: International Evidence

Cited by 4 publications

References 36 publications

Cryptocurrency Impact on India’s Monetary Policy

Cryptocurrency Impact on India’s Monetary Policy

Modelling the monetary policy transmission on the manufacturing output: Evidence from the fastest growing Indian economy

Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria

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