IDEAS home Printed from https://ideas.repec.org/p/nbp/nbpmis/96.html
   My bibliography  Save this paper

Conceptualizing interdependences between regulatory and monetary policies. Some preliminary considerations

Author

Abstract

In this paper we investigate the interplay between regulatory and monetary policies. We analyze how changes in institutional settings modify the functioning of various channels of monetary transmission. The paper begins with a brief presentation of the main channels of monetary transmission, including credit channel, exchange rate channel, Tobin q theory, and the credit channel. After that we define a positive institutional change and we check how such adjustments can be put into the logic of monetary transmission. We show that the most profound way institutions impact the monetary transmission is via its effect on the elasticity of investments to changes in interest rates.

Suggested Citation

  • Lukasz Hardt, 2011. "Conceptualizing interdependences between regulatory and monetary policies. Some preliminary considerations," NBP Working Papers 96, Narodowy Bank Polski.
  • Handle: RePEc:nbp:nbpmis:96
    as

    Download full text from publisher

    File URL: https://static.nbp.pl/publikacje/materialy-i-studia/96_en.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baldwin, Robert E., 2008. "One Economics, Many Recipes: Globalization, Institutions, and Economic Growth by Dani Rodrik Princeton, NJ: Princeton University Press, 2007," World Trade Review, Cambridge University Press, vol. 7(3), pages 573-575, July.
    2. Mishkin, Frederic S., 1978. "The Household Balance Sheet and the Great Depression," The Journal of Economic History, Cambridge University Press, vol. 38(4), pages 918-937, December.
    3. José R. Sánchez-Fung, 2008. "One Economics, Many Recipes: Globalization, Institutions and Economic Growth," Indian Growth and Development Review, Emerald Group Publishing, vol. 1(2), pages 252-256, September.
    4. Niehans, Jurg, 1971. "Money and Barter in General Equilibrium with Transaction Costs," American Economic Review, American Economic Association, vol. 61(5), pages 773-783, December.
    5. James Tobin, 1970. "Money and Income: Post Hoc Ergo Propter Hoc?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(2), pages 301-317.
    6. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    7. Allan H. Meltzer, 1995. "Monetary, Credit and (Other) Transmission Processes: A Monetarist Perspective," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 49-72, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Łukasz Hard, 2014. "Models of Mechanisms and their Role in Building Economic Explanations," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 37.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Athanasenas, Athanasios L., 2010. "Credit, income, and causality: A contemporary co-integration analysis," European Journal of Operational Research, Elsevier, vol. 201(1), pages 194-205, February.
    2. Marvin Goodfriend, 2000. "Overcoming the zero bound on interest rate policy," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, pages 1007-1057.
    3. Takatoshi Ito & Frederic S. Mishkin, 2006. "Two Decades of Japanese Monetary Policy and the Deflation Problem," NBER Chapters, in: Monetary Policy with Very Low Inflation in the Pacific Rim, pages 131-1997, National Bureau of Economic Research, Inc.
    4. Frederic S. Mishkin, 1996. "The Channels of Monetary Transmission: Lessons for Monetary Policy," NBER Working Papers 5464, National Bureau of Economic Research, Inc.
    5. Clifton, Judith & Díaz-Fuentes, Daniel, 2011. "From ‘Club of the Rich’ to ‘Globalisation à la carte’? Evaluating Reform at the OECD," MPRA Paper 33053, University Library of Munich, Germany.
    6. Diana Zavadska, 2018. "Determining The Role Of Banks In The Financing Of Innovative Development Processes Of The Economy," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(3).
    7. Iris Claus & Arthur Grimes, 2003. "Asymmetric Information, Financial Intermediation and the Monetary Transmission Mechanism: A Critical Review," Treasury Working Paper Series 03/19, New Zealand Treasury.
    8. Valentina Aprigliano & Danilo Liberati, 2021. "Using Credit Variables to Date Business Cycle and to Estimate the Probabilities of Recession in Real Time," Manchester School, University of Manchester, vol. 89(S1), pages 76-96, September.
    9. Ireland, Peter N., 2003. "Endogenous money or sticky prices?," Journal of Monetary Economics, Elsevier, vol. 50(8), pages 1623-1648, November.
    10. Gregorio Rius-Sorolla & Sofía Estelles-Miguel & Carlos Rueda-Armengot, 2020. "Multivariable Supplier Segmentation in Sustainable Supply Chain Management," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    11. Kerekes, Carrie B. & Williamson, Claudia R., 2008. "Unveiling de Soto's mystery: property rights, capital formation, and development," Journal of Institutional Economics, Cambridge University Press, vol. 4(3), pages 299-325, December.
    12. Laura E. Grube, 2015. "The role of culture in the persistence of traditional leadership: evidence from KwaZulu Natal, South Africa," Chapters, in: Laura E. Grube & Virgil Henry Storr (ed.), Culture and Economic Action, chapter 17, pages 375-397, Edward Elgar Publishing.
    13. Papaioannou, Elias & Portes, Richard & Siourounis, Gregorios, 2006. "Optimal currency shares in international reserves: The impact of the euro and the prospects for the dollar," Journal of the Japanese and International Economies, Elsevier, vol. 20(4), pages 508-547, December.
    14. Daniel Alonso-Martínez & Nuria González-Álvarez & Mariano Nieto, 2021. "Does international patent collaboration have an effect on entrepreneurship?," Journal of International Entrepreneurship, Springer, vol. 19(4), pages 539-559, December.
    15. Richard Langlois, 2013. "The Institutional Revolution: A review essay," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 26(4), pages 383-395, December.
    16. Gani, Azmat & Scrimgeour, Frank, 2014. "Modeling governance and water pollution using the institutional ecological economic framework," Economic Modelling, Elsevier, vol. 42(C), pages 363-372.
    17. Gianluca Marchi & Giuseppe Nardin, 2014. "Alleanze internazionali e mercati emergenti: l?esperienza del distretto ceramico di Sassuolo," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 2014(2), pages 44-54.
    18. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    19. Jeffery S. McMullen & Dimo Dimov, 2013. "Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1481-1512, December.
    20. repec:mje:mjejnl:v:12:y:2017:i:2:p:25-70 is not listed on IDEAS
    21. Emil Evenhuis, 2017. "Institutional change in cities and regions: a path dependency approach," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 509-526.

    More about this item

    Keywords

    monetary transmission channels; monetary policy; regulatory policy; institutional change; financial globalization;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nbp:nbpmis:96. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Jakub Growiec (email available below). General contact details of provider: https://edirc.repec.org/data/nbpgvpl.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.