Monetary Policy Reaction to COVID-19 and Their Economic Impact in Central America and the Dominican Republic

Jesús López Cabrera, Enrique González Mata and Juan Quiñonez Wu

Journal of Emerging Market Finance, 2025, vol. 24, issue 1, 7-36

Abstract: This study aims to recognize and succinctly evaluate the monetary policy implemented during the COVID-19 pandemic, as well as in the immediate recovery period, and their economic impact in Central America and the Dominican Republic (CARD). To this end, the study carries out a qualitative and quantitative analysis of the monetary policy implemented to reduce the negative economic impact on CARD, during the period 2020–2022. VAR and panel econometric techniques were used for the analysis. The results show that even though the central banks of CARD countries did indeed seek to stimulate economic activity, the effects on aggregate economic activity are very small. Other types of policies, such as fiscal, financial, and regulatory policies, may have contributed to reducing to a greater extent the negative impact of the COVID-19 pandemic on economic activity. JEL Codes : E52, G01, C54

Keywords: Monetary policy; COVID-19; Central America countries; Dominican Republic; VAR; Panel VAR (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09726527241257755 (text/html)

Related works:
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:sae:emffin:v:24:y:2025:i:1:p:7-36

DOI: 10.1177/09726527241257755

Access Statistics for this article

More articles in Journal of Emerging Market Finance from Institute for Financial Management and Research
Bibliographic data for series maintained by SAGE Publications ().