Download or read book The Transmission Mechanism in Armenia written by International Monetary Fund and published by International Monetary Fund. This book was released on 2010-11-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: The introduction of inflation targeting in 2006, together with important economic developments such as dedollarization, marked the beginning of a new macroeconomic framework in Armenia, which is likely to have changed the effectiveness of monetary policy. This paper is the first attempt to analyze whether the transmission mechanism in Armenia has been subject to a structural break by employing a Markov-Switching VAR framework. Results support the existence of such a structural break around the time inflation targeting was introduced and reduced levels of dollarization were observed. Results from introducing a threshold variable into this framework furthermore show that reduced levels of dollarization are an important determinant of the effectiveness of monetary policy.
Download or read book Transmission Mechanisms of Monetary Policy in Armenia written by Mr.Holger Floerkemeier and published by INTERNATIONAL MONETARY FUND. This book was released on 2006-11-01 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines monetary policy transmission in Armenia in light of the authorities' intention to shift to an inflation-targeting regime over the medium term. We find that the capability of monetary policy to influence economic activity and inflation is still limited, as important channels of monetary transmission are not fully functional. In particular, the interest rate channel remains weak, even though there is some evidence of transmission to prices of changes in the repo rate, the central bank's new operating target for inflation. As in other emerging and transition economies with a high degree of dollarization, the exchange rate channel has a strong impact on the inflation rate. Moreover, we find that inflation does respond to broad money shocks, once foreign currency deposits are included.
Download or read book IMF Working Papers written by Holger Floerkemeier and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Structual Versus Matching Estimation written by K. Poghosyan and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Money and Wages written by David A. Grigorian and published by International Monetary Fund. This book was released on 2004-12 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is the first attempt to look at inflation dynamics and monetary transmission mechanisms in Armenia in the context of a full information model containing three interrelated markets: foreign exchange, money, and labor. Using the vector error correction model (VECM) approach, we find that the exchange rate pass-through to prices is very strong relative to credit, wage, and interest rate channels. The analysis suggests a relatively fast adjustment of prices to long-run disequilibria in the exchange rate market, albeit with initial overshooting of the price level. In addition, we find no evidence of prices responding to changes in money and wages in a statistically significant manner.
Download or read book Modalities of Moving to Inflation Targeting in Armenia and Georgia written by Andreas Billmeier and published by International Monetary Fund. This book was released on 2007-06 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the current monetary and exchange rate policy frameworks in Armenia and Georgia, and the challenges associated with the choice of a credible nominal anchor in the context of large nominal and real shocks. The paper makes a case for a gradual transition to full-fledged inflation targeting (FFIT) in both countries in the medium term. The implications of this option are examined from various angles. In particular, the monetary transmission mechanisms and compliance with major institutional prerequisites for successful FFIT adoption are analyzed. Based on this analysis, the paper identifies a series of short- and medium-term recommendations, drawing on the experience of emerging market countries that successfully moved to FFIT.
Download or read book Republic of Armenia written by International Monetary Fund. Middle East and Central Asia Dept. and published by International Monetary Fund. This book was released on 2023-12-14 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Republic of Armenia: Selected Issues
Download or read book Exchange Rate Money and Wages written by David Grigorian and published by . This book was released on 2006 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is the first attempt to look at inflation dynamics and monetary transmission mechanisms in Armenia in the context of a full information model containing three interrelated markets: foreign exchange, money, and labor. Using the vector error correction model (VECM) approach, we find that the exchange rate pass-through to prices is very strong relative to credit, wage, and interest rate channels. The analysis suggests a relatively fast adjustment of prices to long-run disequilibria in the exchange rate market, albeit with initial overshooting of the price level. In addition, we find no evidence of prices responding to changes in money and wages in a statistically significant manner.
Download or read book Transmission Mechanisms of Monetary Policy in Armenia written by Era Dabla-Norris and published by . This book was released on 2006 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines monetary policy transmission in Armenia in light of the authorities' intention to shift to an inflation-targeting regime over the medium term. We find that the capability of monetary policy to influence economic activity and inflation is still limited, as important channels of monetary transmission are not fully functional. In particular, the interest rate channel remains weak, even though there is some evidence of transmission to prices of changes in the repo rate, the central bank's new operating target for inflation. As in other emerging and transition economies with a high degree of dollarization, the exchange rate channel has a strong impact on the inflation rate. Moreover, we find that inflation does respond to broad money shocks, once foreign currency deposits are included.
Download or read book Monetary Policy Transmission in Emerging Markets and Developing Economies written by Mr.Luis Brandao-Marques and published by International Monetary Fund. This book was released on 2020-02-21 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Central banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT). However, questions regarding the strength of monetary policy transmission from interest rates to inflation and output have often stalled progress. We conduct a novel empirical analysis using Jordà’s (2005) approach for 40 EMDEs to shed a light on monetary transmission in these countries. We find that interest rate hikes reduce output growth and inflation, once we explicitly account for the behavior of the exchange rate. Having a modern monetary policy framework—adopting IT and independent and transparent central banks—matters more for monetary transmission than financial development.
Download or read book Republic of Armenia written by International Monetary Fund and published by International Monetary Fund. This book was released on 2010-07-21 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic activity appears to be recovering, underpinned by a strong policy response. Fiscal consolidation will be crucial to maintain debt sustainability and support the envisaged external adjustment over the medium term. Sound monetary and exchange rate policies are essential to maintain macroeconomic stability. Improvements in tax administration are needed to achieve the program’s goals of sound public finances and stronger economic growth. Broader efforts to strengthen the business environment are crucial to boost medium-term growth prospects. Risks to the program are manageable.
Download or read book Monetary Policy Transmission Mechanisms in Pacific Island Countries written by Mr.Jonathan C. Dunn and published by International Monetary Fund. This book was released on 2011-04-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the global financial crisis, central banks in Pacific island countries eased monetary policy to stimulate economic activity. Judging by the ensuing movements in commercial bank interest rates and private sector credit, monetary policy transmission appears to be weak. This is confirmed by an empirical examination of interest rate pass-through and credit growth. Weak credit demand and underdeveloped financial markets seem to have limited the effectiveness of monetary policy, but the inflexibility of exchange rates and rising real interest rates have also served to frustrate the central banks’ efforts despite a supporting fiscal policy. While highlighting the importance of developing domestic financial markets in the long run, this experience also points to the need to coordinate macroeconomic policies and to use all macroeconomic tools available in conducting countercyclical policies, including exchange rate flexibility.
Download or read book Republic of Armenia written by International Monetary Fund. Middle East and Central Asia Dept. and published by International Monetary Fund. This book was released on 2017-07-19 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2017 Article IV Consultation highlights that Armenia’s growth has been satisfactory with inflation under control, the fiscal situation broadly well managed, and foreign exchange reserves enhanced. In 2016, GDP growth was only 0.2 percent, deflationary pressures persisted, and the fiscal deficit rose to 5.6 percent of GDP. Economic activity in 2017 has shown signs of recovery, accompanied by a pickup in inflation and private sector credit growth, supported by monetary policy easing. With improving outlook in major trading partners and a pickup in private sector activity, real GDP is projected to grow by about 3 percent in 2017, while inflation would reach about 2 percent by end-2017.
Download or read book Effectiveness of Central Banks and Their Role in the Global Financial Crisis written by Shamshad Akhtar and published by Asian Development Bank. This book was released on 2009-12-01 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the role and performance of central banks in low-income countries that have faced a range of domestic and external fragilities, aggravated by the global financial crisis that started in the United States and other advanced economies. It focuses on a select group of developing member countries of the Asian Development Bank in the Caucasus, Central Asia, and South Asia that have been and will continue to be vulnerable to adverse external developments.
Download or read book How Effective is Monetary Transmission in Low Income Countries A Survey of the Empirical Evidence written by Ms.Prachi Mishra and published by International Monetary Fund. This book was released on 2012-06-01 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Monetary Transmission Mechanism in the East African Community written by Mr.Hamid Reza Davoodi and published by International Monetary Fund. This book was released on 2013-02-06 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do changes in monetary policy affect inflation and output in the East African Community (EAC)? We find that (i) Monetary Transmission Mechanism (MTM) tends to be generally weak when using standard statistical inferences, but somewhat strong when using non-standard inference methods; (ii) when MTM is present, the precise transmission channels and their importance differ across countries; and (iii) reserve money and the policy rate, two frequently used instruments of monetary policy, sometimes move in directions that exert offsetting expansionary and contractionary effects on inflation—posing challenges to harmonization of monetary policies across the EAC and transition to a future East African Monetary Union. The paper offers some suggestions for strengthening the MTM in the EAC.
Download or read book Sustainable Development Insights from India written by Purnamita Dasgupta and published by Springer Nature. This book was released on 2021-03-19 with total page 507 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume is a collection of essays that provide a comprehensive coverage of multiple aspects of the discourse on environment, development and sustainability. It is designed to bring in a host of perspectives highlighting the synergies and the trade-offs in this debate, showcasing research along with policy implications of putting research into use. The global discussion on sustainability paints the broad canvas for this book. This volume aims to probe some contemporary issues that will help in understanding the sustainability narrative in India. The topics span over a host of questions on energy, environment, natural resources and related constituents of development. The discourse further extends to the role of economic modelling, public policy debates, political intervention, stakeholders’ response, community participation and so on. The discussions are often based on empirical support, review of existing literature as well as policy analysis. With an ultimate aim to understand the overall development narrative of the people of India, the discourse takes in its ambit the nuances of resource utilisation, economic growth, COVID-19 impacts, competitiveness and market structures, urbanization, sectoral reforms, environmental hazards, climate change, pollution, natural resource accounting and management to name a few. The book is divided into four sections, namely, The Big Picture: Evolving Perspectives; The Energy Scenario: Dilemmas and Opportunities; Sustainability Cross-Cuts: Developmental Aspects and Externality Empirics: Knowledge and Practice. The first section contains commentaries on the overarching themes of economic growth, development and sustainability. It presents some emerging perspectives on the developmental crisis that has emerged through the environmental lens with additional focus on the need for inclusion of creativity, knowhow, technology and financial resources to achieve the ambitious SDG targets. The second section brings out the dilemmas and opportunities in the energy sector, that has been a key player in discussions of sustainability, especially for India where significant technological advances in conventional forms of energy supply coexists with fairly low levels of per capita energy consumption and energy security is a key challenge. The section on sustainability crosscuts attempts to highlight the problems and processes of mainstreaming the sustainability question into conventional thinking through the concepts of a circular economy, green accounting techniques, institutional and governance structures, public policy and inclusive growth, amongst others. The last section presents some empirical studies on environmental externalities, the unaccounted environmental effects of economic production and consumption and finally the behavioural aspects of the stakeholders that are crucial in the larger narrative of sustainable development. This edited volume contains contributions of reputed scholars from various Indian universities, research institutions and professionals from outside academia, who are proven experts in their fields. The link between policy, practice, and well-being of the large vulnerable population of India is the major focus of enquiry that will help researchers, practitioners and policy planners in conducting further research in energy, environment, resource and linked areas of development economics. General readers with an active interest in energy, environment, and economic development are also likely to find this book an interesting read, especially in the times of several environmental challenges facing humankind.
