How effective is monetary transmission in low-income countries? A survey of the empirical evidence

Prachi Mishra and Peter Montiel

Economic Systems, 2013, vol. 37, issue 2, 187-216

Abstract: This paper surveys the evidence on the effectiveness of monetary transmission in low-income countries. It is hard to come away from this review with much confidence in the strength of monetary transmission in such countries. We distinguish between the “facts on the ground” and “methodological deficiencies” interpretations of the absence of evidence for strong monetary transmission. We suspect that “facts on the ground” are an important part of the story. If this conjecture is correct, the stabilization challenge in developing countries is acute indeed, and identifying the means of enhancing the effectiveness of monetary policy in such countries is an important challenge.

Keywords: Monetary policy; Exchange rate; Interest rate; Banks; Institutions; Developing countries (search for similar items in EconPapers)
JEL-codes: E5 O11 O16 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (58)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0939362513000332
Full text for ScienceDirect subscribers only

Related works:
Working Paper: How Effective is Monetary Transmission in Low-Income Countries? A Survey of the Empirical Evidence (2012)
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:ecosys:v:37:y:2013:i:2:p:187-216

DOI: 10.1016/j.ecosys.2012.12.001

Access Statistics for this article

Economic Systems is currently edited by R. Frensch

More articles in Economic Systems from Elsevier Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Liu ().