Monetary Transmission in Diverse Economies

Cambridge University Press, 10/15/2011
EAN 9780521013253, ISBN10: 0521013259

Paperback, 276 pages, 22.9 x 15.2 x 1.5 cm
Language: English

The transmission mechanism of monetary policy explains how monetary policy works - which variables respond to interest rate changes, when, why, how, how much and how predictably. It is vital that central banks and their observers, worldwide, understand the transmission mechanism so that they know what monetary policy can do and what it should do to stabilize inflation and output. The volume sets out different aspects of the transmission mechanism. Some chapters scrutinize the relevance of practical issues such as asymmetries, recent structural changes and estimation errors using data on the USA, the Euro area and developing countries. Other chapters focus on modelling crucial aspects such as productivity, the exchange rate and the monetary sector. These issues are counterpointed by contributions that analyse monetary policy in Japan and the UK.

1. Introduction - the transmission mechanism and monetary policy Lavan Mahadeva and Peter Sinclair
2. Are the effects of monetary policy in the Euro area greater in recessions than in booms? Gert Peersman and Frank Smets
3. Supply shocks and the 'Natural rate of interest'
an exploration Jagjit S. Chadha and Charles Nolan
4. Some econometrics issues in measuring the monetary transmission mechanism, with an application to developing countries Derick Boyd and Ron Smith
5. Central bank goals, institutional change and monetary policy
evidence from the United States and United Kingdom V. Anton Muscatelli and Carmine Trecroci
6. The transmission mechanism of monetary policy near zero interest rates
the Japanese experience, 1998–2000 Kazuo Ueda
7. What does the UK's monetary policy and inflation experience tell us about the transmission mechanism? Edward Nelson
8. Modelling the transmission mechanism of monetary policy Peter Westaway
9. Empirical evidence for credit effects in the transmission mechanism of the United Kingdom K. Alec Chrystal and Paul Mizen
10. Uncovered interest parity with fundamentals
a Brazilian exchange rate forecast model Marcelo Kfoury Muinhos, Paulo Springer De Freitas and Fabio Araujo
11. Uncovered interest parity and the monetary transmission mechanism G. Meredith.

Review of the hardback: 'The diversity of approaches and topics covered offers a variety of interesting insights into the modelling of monetary transmission and its application to monetary policy making.' International Journal of Finance & Economics