IMF Working Papers Volume 2012 Issue 191: Lost in Transmission? The Effectiveness of Monetary Policy Transmission Channels in the GCC Countries (2012)

Jump to Content

Buy Book in Print

Lost in Transmission? The Effectiveness of Monetary Policy Transmission Channels in the GCC Countries

Author:

Mr. Serhan Cevik

Mr. Serhan Cevik
Search for other papers by Mr. Serhan Cevik in
Current site
Google Scholar

https://orcid.org/0000-0002-2373-2023

and

Ms. Katerina Teksoz

Ms. Katerina Teksoz null

Search for other papers by Ms. Katerina Teksoz in
Current site
Google Scholar

Series:: IMF Working Papers

Volume/Issue:: Volume 2012: Issue 191

Language:: English

Publication Date:: 01 Jul 2012

DOI:: https://doi.org/10.5089/9781475505399.001

ISBN:: 9781475505399

ISSN:: 1018-5941

Pages:: 35

Keywords:: WP; GCC country; interest rate; contractionary monetary policy; Monetary policy transmission; inflation; credit channel; structural VAR; monetary policy shock; exchange rate regime; GCC aggregate; GCC economy; Exchange rates; Exchange rate arrangements; Bank credit; Structural vector autoregression; Monetary transmission mechanism; Global

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Series:: IMF Working Papers

Volume/Issue:: Volume 2012: Issue 191

Language:: English

Publication Date:: 01 Jul 2012

DOI:: https://doi.org/10.5089/9781475505399.001

ISBN:: 9781475505399

ISSN:: 1018-5941

Pages:: 35

Keywords:: WP; GCC country; interest rate; contractionary monetary policy; Monetary policy transmission; inflation; credit channel; structural VAR; monetary policy shock; exchange rate regime; GCC aggregate; GCC economy; Exchange rates; Exchange rate arrangements; Bank credit; Structural vector autoregression; Monetary transmission mechanism; Global

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Download PDF (1.5 MB) Download Epub

This paper empirically investigates the effectiveness of monetary policy transmission in the Gulf Cooperation Council (GCC) countries using a structural vector autoregressive model. The results indicate that the interest rate and bank lending channels are relatively effective in influencing non-hydrocarbon output and consumer prices, while the exchange rate channel does not appear to play an important role as a monetary transmission mechanism because of the pegged exchange rate regimes. The empirical analysis suggests that policy measures and structural reforms - strengthening financial intermediation and facilitating the development of liquid domestic capital markets - would advance the effectiveness of monetary transmission mechanisms in the GCC countries.

Save
Cite
Email this content

Share Link

Copy this link, or click below to email it to a friend
Email this content
or copy the link directly:

https://www.elibrary.imf.org/view/journals/001/2012/191/001.2012.issue-191-en.xml
The link was not copied. Your current browser may not support copying via this button.

Link copied successfully

Collapse
Expand

IMF Working Papers

ISSN:: 1018-5941

Publisher:: International Monetary Fund

Topics

Countries

Series

About

Resources

Share Link

Metrics