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Monetary Policy Transmission Mechanism Onto The Real Economy-A Literature Review

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  • Andreea ANDRIES

    ("Alexandru Ioan Cuza" University of Iaºi, Romania)

Abstract

This paper aims to emphasize the importance of the monetary policy transmission mechanism onto the financial sector and especially on the real economy, considering theoretical and empirical representative research for the field approached. The study uses a qualitative approach based mainly on a comparative analysis between points of view, methodological aspects and results. The main findings obtained from the analysis of specialized literature are the following: the impact of monetary policy decisions on the real economy is significant, even in conditions of economical and financial turmoil like the subprime crisis; the range of tools, mathematical techniques and econometric models used in professional studies is extensive and in development; the main factor influencing the functionality of the monetary policy transmission mechanism remains the "texture" of the financial system.

Suggested Citation

  • Andreea ANDRIES, 2012. "Monetary Policy Transmission Mechanism Onto The Real Economy-A Literature Review," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 12(1(15)), pages 211-217, June.
    • Handle: RePEc:scm:usvaep:v:12:y:2012:i:1(15):p:211-217
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    File URL: http://www.seap.usv.ro/annals/arhiva/USVAEPA_VOL.12,ISSUE_1(15),2012
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    Cited by:

    1. Forhad, Abdur Rahman & Homaifar, Ghassem A. & Salimullah, Abul Hasnat Muhammed, 2017. "Monetary Policy Transmission Effect On The Real Sector Of The Bangladesh Economy: An Svar Approach," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(1), pages 25-46.

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