EVIDENCE ON MONETARY POLICY TRANSMISSION DURING TRANQUIL AND TURBULENT PERIODS
Abstract
This paper evaluates monetary policy transmission in both tranquil and turbulent
periods for Mexico, Indonesia, Nigeria, and Turkey. Using a structural vector
autoregressive model, we find that the effect of structural shocks from supply, demand,
and financial sources tend to fizzle out faster for Nigeria and Mexico compared to
Indonesia and Turkey. Another important finding is that while monetary authorities
in Indonesia and Turkey are more responsive to inflation those in Mexico and Nigeria
are more influenced by the exchange rate. We also observe differences in the conduct
of monetary policy between the tranquil and turbulent periods.
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
