IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/0726.html
   My bibliography  Save this paper

Global Shocks and Monetary Policy Transmission in Emerging Markets

Author

Listed:
  • Renzhi, Nuobu

    (Capital University of Economics and Business)

  • Beirne , John

    (Asian Development Bank)

Abstract

This paper empirically examines the impact of global shocks on monetary policy transmission in 24 emerging market economies (EMEs), using panel local projections over the period 2000 to 2022. The estimated results show that adverse global shocks, namely a tighter United States monetary policy stance, higher global financial market uncertainty, and global climate change, could dampen the transmission of monetary policy in EMEs. Specifically, the overall responses of industrial production and inflation to monetary policy shocks are more muted compared to the case where the impacts of global factors are isolated. We also study whether economy-specific characteristics across EMEs affect the monetary policy transmission impacts of global shocks. The results suggest that a higher level of financial development can partially offset the dampening effects of global shocks, while a higher degree of capital account openness and trade openness further amplify the impact of global shocks.

Suggested Citation

  • Renzhi, Nuobu & Beirne , John, 2024. "Global Shocks and Monetary Policy Transmission in Emerging Markets," ADB Economics Working Paper Series 726, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0726
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    global shocks; monetary policy transmission; emerging market economies;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0726. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.