Financial structure, institutional quality and monetary policy transmission: A Meta-Analysis
Rudrani Bhattacharya (),
Shruti Tripathi () and
Sahana Roy Chowdhury ()
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Rudrani Bhattacharya: National Institute of Public Finance and Policy
Shruti Tripathi: National Institute of Public Finance and Policy
Working Papers from National Institute of Public Finance and Policy
The long-standing empirical literature of monetary policy transmission acknowledges weak transmission of monetary policy shock to real activities and inflation in emerging economies. Fragile financial system, low level of financial integration and weak institutions are often cited as the reasons for lack of monetary policy transmission in these economy. This paper investigates to what extent these factors explain the variation in the extent of monetary policy transmission in a comprehensive set of developed and developing economies using meta-analysis framework. We find that the degree of financial development captured by various financial indicators explain cross-country variations in the magnitude and time lag of monetary policy transmission. We also find the role of financial accelerator in transmission magnitude to output growth.
Keywords: Financial developmen; Institutions; Monetary Policy Transmission; Meta-Analysis (search for similar items in EconPapers)
JEL-codes: C51 E52 E58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-fdg, nep-mac and nep-mon
Note: Working Paper 274, 2019
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Persistent link: https://EconPapers.repec.org/RePEc:npf:wpaper:19/274
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