Financial Innovation and Effectiveness of Monetary Policy
9 Pages Posted: 4 Sep 2008 Last revised: 25 May 2009
Date Written: September 3, 2008
This paper examines the effectiveness of monetary policy in changing financial environments fostered by financial innovations. Financial innovation can make monetary analysis more complex, and modify the monetary policy transmission mechanism. This makes the monetary policy effective only in the short-period.
Keywords: Financial Innovation, Monetary policy
JEL Classification: E44, E52, E58
Suggested Citation: Suggested Citation