Front Matter Page
Middle East and Central Asia Department
Authorized for distribution by Edward Gardner
Contents
I. Introduction
II. Conceptual Framework
III. Empirical Framework
A. Random Coefficients Model
IV. Data and Results
A. Data
B. Panel Estimation
C. Random Coefficients Estimation
D. Channels
V. Conclusion
Appendixes
I. Data
II. Estimation of RCM Model
Tables
1. Effects of Base Interest Rate on Real Output Growth: Baseline Least Square Estimates
2. Effects of Base Interest Rate on Real Output Growth: Additional Controls
3. Effects of Base Interest Rate on Real Output Growth: Subsamples of Data
4. Considering Non-Base Interest Rates
5. Explanation of Base Interest Rate Impact on Real Output Growth: Random Coefficients Model
6. Impact of Change in Base Interest Rates and Spread on Change in Domestic Interest Rates
7. Other Channels and Base Interest Rate
Appendix Tables
A1. Sample Summary Statistics
A2. Effects of Base and U.S. Interest Rates on Real Investment Growth
A3. Different Cuts of Data to Exclude Outlier Periods and Observations
A4. Examination of Different Exchange Rate Regimes’ Classifications
A5. Examination on Reinhart and Rogoff’s Five-Way Breakdown of Exchange Rate Regimes
Figure
1. Impact of Exchange Rate Regime on Estimated Base Interest Rate Coefficients
References