Monetary Transmission Mechanism in Transition Economies: Surveying the Surveyable

Égert, Balázs; MacDonald, Ronald

doi:10.2139/ssrn.914472

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Monetary Transmission Mechanism in Transition Economies: Surveying the Surveyable

CESifo Working Paper Series No. 1739

83 Pages Posted: 6 Jul 2006

See all articles by Balázs Égert

Balázs Égert

Organization for Economic Co-Operation and Development (OECD); CESifo (Center for Economic Studies and Ifo Institute); Université Paris X Nanterre - Department of Economics; William Davidson Institute

Ronald MacDonald

University of Strathclyde in Glasgow - Department of Economics; Government of New Zealand - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: June 2006

Abstract

This paper surveys recent advances in the monetary transmission mechanism (MTM). In particular, while laying out the functioning of the separate channels in the MTM, special attention is paid to exploring possible interrelations between different channels through which they may amplify or attenuate each others' impact on prices and the real economy. We take stock of the empirical findings especially as they relate to countries in Central and Eastern Europe, and compare them to results reported for industrialised countries, especially for the euro area. We highlight potential pitfalls in the literature and assess the relative importance and potential development of the different channels.

Keywords: monetary transmission, transition, Central and Eastern Europe, credit channel,

JEL Classification: E31, E51, E58, F31, O11, P20

Suggested Citation: Suggested Citation

Egert, Balazs and MacDonald, Ronald R., Monetary Transmission Mechanism in Transition Economies: Surveying the Surveyable (June 2006). CESifo Working Paper Series No. 1739, Available at SSRN: https://ssrn.com/abstract=914472 or http://dx.doi.org/10.2139/ssrn.914472