EconPapers    
Economics at your fingertips  
 

Monetary policy transmission in systemically important economies and China’s impact

Domenico Lombardi, Pierre Siklos () and Xiangyou Xie

Journal of Asian Economics, 2018, vol. 59, issue C, 61-79

Abstract: This paper examinesthe monetary policy transmission mechanism in four systemically important economies. The impact of monetary policy is found to be broadly comparable for China, the US, the Eurozone, and Japan. Identifying a role for the financial sector is essential to unpacking various channels through which monetary policy operates. Global factors play a significant role and their impact is strongest for China and weakest for Japan. China’s impact is significant with the Eurozone displaying the most interdependence and Japan the least. Time-varying VARs suggest that contrasts in the responses to monetary policy shocks persist highlighting some of the remaining differences in the transmission mechanism. Finally, there is no apparent structural change in the estimated relationships around the time when the Fed intervened after 2008. It is conjectured that Quantitative Easing may well have prevented such a break.

Keywords: Monetary policy transmission; Systemically important economies; QE; Factor VAR; Time-varying factor VAR (search for similar items in EconPapers)
JEL-codes: E63 E52 E58 E32 E31 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1049007818300757
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Monetary policy transmission in systemically important economies and China’s impact (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:59:y:2018:i:c:p:61-79

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-01-19
Handle: RePEc:eee:asieco:v:59:y:2018:i:c:p:61-79