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Evidence On Monetary Policy Transmission During Tranquil And Turbulent Periods

Author

Listed:
  • Chioma Peace Nwosu

    (Central Bank of Nigeria)

  • Afees A. Salisu

    (Centre for Econometric & Allied Research, University of Ibadan)

  • Margaret Johnson Hilili

    (Central Bank of Nigeria)

  • Izuchukwu Ifeanyi Okafor

    (Central Bank of Nigeria)

  • Izuchukwu Oji-Okoro

    (Central Bank of Nigeria)

  • Idis Adediran

    (Centre for Econometric & Allied Research, University of Ibadan)

Abstract

This paper evaluates monetary policy transmission in both tranquil and turbulent periods for Mexico, Indonesia, Nigeria, and Turkey. Using a structural vector autoregressive model, we find that the effect of structural shocks from supply, demand, and financial sources tend to fizzle out faster for Nigeria and Mexico compared to Indonesia and Turkey. Another important finding is that while monetary authorities in Indonesia and Turkey are more responsive to inflation those in Mexico and Nigeria are more influenced by the exchange rate. We also observe differences in the conduct of monetary policy between the tranquil and turbulent periods.

Suggested Citation

  • Chioma Peace Nwosu & Afees A. Salisu & Margaret Johnson Hilili & Izuchukwu Ifeanyi Okafor & Izuchukwu Oji-Okoro & Idis Adediran, 2019. "Evidence On Monetary Policy Transmission During Tranquil And Turbulent Periods," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 22(3), pages 311-350, October.
    • Handle: RePEc:idn:journl:v:22:y:2019:i:3d:p:311-350
    DOI: https://doi.org/10.21098/bemp.v22i3.1111
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Monetary policy transmission; Structural Vector Autoregressive model; MINT countries; Global financial crisis;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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