IDEAS home Printed from https://ideas.repec.org/a/rce/rvceco/19966.html
   My bibliography  Save this article

The pass through effect of the Central Bank of Costa Rica monetary policy interest rate to the interest rates of the financial system

Author

Listed:
  • Barquero Romero, José Pablo
  • Mora Guerrero, David Ricardo

Abstract

The paper has two parts, the first part tests from the Engle and Granger (1987) point of view the following hypothesis: i) the pass through is equal to one, ii) the pass through changed after the adoption of a new exchange rate regime, iii) the pass through speed changed along with the change in the exchange rate regime (non-linearity), iv) the banks in the financial system do not adjust symmetrically their interest rates (in order to increase their profit margin). In the second part the paper analyses the main factors that affect the effectiveness of the pass through mechanism, financial dollarization, banking industry concentration, the level of government debt and the Central Bank deficit.

Suggested Citation

  • Barquero Romero, José Pablo & Mora Guerrero, David Ricardo, 2015. "The pass through effect of the Central Bank of Costa Rica monetary policy interest rate to the interest rates of the financial system," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 33(1), December.
    • Handle: RePEc:rce:rvceco:19966
    as

    Download full text from publisher

    File URL: https://revistas.ucr.ac.cr/index.php/economicas/article/view/19966
    Download Restriction: no
    ---><---

    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:rce:rvceco:19966. 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: Luis J. Hall (email available below). General contact details of provider: https://edirc.repec.org/data/iiucrcr.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.