Understanding the Relationship between Financial Development and Monetary Policy

Luis Carranza (), José Enrique Galdón Sánchez () and Javier Gómez Biscarri
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José Enrique Galdón Sánchez: Universidad Pública de Navarra
Authors registered in the RePEc Author Service: Jose Enrique Galdon-Sanchez ()

No 14/06, Faculty Working Papers from School of Economics and Business Administration, University of Navarra

Abstract: In this paper we summarize the results of a broad exploratory empirical analysis where we relate the level of financial development with the effectiveness of monetary policy. The analysis is based on a panel of countries for whom we calculate measures both of financial development and of monetary policy effectiveness. We look for statistically significant relationships between the indicators of financial development, the effectiveness coefficients and other macroeconomic characteristics by estimating dynamic panels and performing a cluster analysis. We present our results in the form of a list of stylized facts that we consider deserve further attention.

Keywords: Financial Development; Monetary Policy Effectiveness; Dynamic Panel; Empirical Measures (search for similar items in EconPapers)
JEL-codes: E44 E52 G15 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2006-10-10
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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http://www.unav.edu/documents/10174/6546776/1256482480_WP_UNAV_14_06.pdf (application/pdf)

Related works:
Journal Article: Understanding the Relationship between Financial Development and Monetary Policy (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:una:unccee:wp1406

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