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How Does Monetary Transmission Mechanism Impact Output, Inflation and Money Market Funds in Argentine?

31 Pages Posted: 17 Feb 2010  

Juan Ledesma Padilla

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne)

Date Written: February 16, 2010

Abstract

The paper is aimed at quantifying empirically the monetary transmission mechanism for Argentine, and at analyzing the responses of output, inflation, and money market mutual funds (MMMF) to a positive monetary shock. The idea of incorporating MMMF into the system is to understand how economic agents (retailers, corporations and institutions) react to different economic scenarios, and to test how they would respond to a number of macroeconomic shocks. Application of a Vector Auto regression (VAR) approach and utilization of accounting innovations (Impulse Response Functions and Variance Decompositions) and Granger causality test will help us determine the dynamic path for each variable.

Keywords: Vector Auto regression, Money Supply, Output, Price Level, Money Market Funds, Argentine, Impulse Response Functions, Variance Decomposition

JEL Classification: C22, C32, C52, E40, E42, E44, E51, E52, F31, G11, L84, M21 ,N16, O54, P16

Suggested Citation

Ledesma Padilla, Juan, How Does Monetary Transmission Mechanism Impact Output, Inflation and Money Market Funds in Argentine? (February 16, 2010). Available at SSRN: https://ssrn.com/abstract=1554002 or http://dx.doi.org/10.2139/ssrn.1554002

Juan Marcos Ledesma Padilla (Contact Author)

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne) ( email )

Unil Dorigny, Batiment Internef
Lausanne, 1015
Switzerland

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