scholarly journals Monetary Transmission Mechanism in Nigeria: A Causality Test

2013 ◽  
Author(s):  
Bernhard Ozofere Ishioro
Keyword(s):  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Causality Test ◽  
Monetary Transmission Mechanism

Dynamism of Monetary Transmission Mechanism in Nigeria: Interest Rate and Market Capitalization Causality Evidence

2018 ◽  
Vol 2 (1) ◽  
pp. 81-91
Author(s):  
Prince Umor C. Agundu ◽  
Waleru Henry Akani
Keyword(s):  
Interest Rate ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Coefficient Of Determination ◽  
Series Data ◽  
Causality Test ◽  
Market Capitalization ◽  
Monetary Transmission Mechanism

The potency of monetary transmission channels anchors the process by which interest rate movements and other cardinal aggregates influence critical financial fundamentals in an economy. This study, thus, examines dynamism of the monetary transmission mechanism with focus on the causality of interest rate and market capitalization in the Nigerian economy. Time series data covering a period of 36 years (1981 - 2015) were extracted from publications of monetary authorities and related agencies, including annual reports of Deposit Money Banks (DMBs) in the country. Facilitated by E-Views software, the analytical proceedings generated the required statistical outcomes in terms of coefficient of correlation (r), coefficient of determination (R2), t-statistic, and F-statistic. Granger causality test was also conducted to clearly establish the direction of causality between the focal variables. Essentially, the null hypothesis is rejected as probability of the F-statistic is less than the specified 0.05 level of significance. The granger causality test statistics run from four interest rate components to the operational capital market fundamental (with F-statistics of 5.758, 5.540, 4.209,and5.656; as well as  probability values of 0.008, 0.009, 0.002, and 0.009 respectively). In view of the analytical outcomes, it is recommended that interest rate components be efficiently synergized to boost investors’ confidence and further drive monetary policy dynamics towards greater financial system vitality and sustainability in Nigeria.

scholarly journals The Monetary Transmission Mechanism in the New Economy: Evidence from Turkey (1997-2006)

2007 ◽  
Vol 2 (1) ◽  
pp. 15-24 ◽  
Author(s):  
Atilla Cifter ◽  
Alper Ozun
Keyword(s):  
Interest Rates ◽  
Money Supply ◽  
New Economy ◽  
Transmission Mechanism ◽  
New Keynesian ◽  
Monetary Transmission ◽  
Causality Test ◽  
Monetary Transmission Mechanism ◽  
New Period ◽  
The New Period

The Monetary Transmission Mechanism in the New Economy: Evidence from Turkey (1997-2006)This study aimed to test the money base, money supply, credit capacity, industrial production index, interest rates, inflation and real exchange rate data of Turkey during the years 1997 - 2006. These were tested through the monetary transmission mechanism and passive money hypothesis, using the vector error correction model-based causality test. Empirical findings showed that the passive money supply hypothesis of the new Keynesian economy is supported in part by accommodationalist views and differs from those of structuralist and liquidity preference theories. However, the monetary transmission mechanism has established that long-term money supply only affects general price levels, while production is influenced by interest rates in the new period of the Turkish economy. Empirical findings show that in this new period, interest transmission mechanisms are at the forefront.

scholarly journals How does the monetary transmission mechanism work? Evidence from Turkey

2020 ◽  
Vol 20 (4) ◽  
pp. 375-382
Author(s):  
Ufuk Can ◽  
Mehmet Emin Bocuoglu ◽  
Zeynep Gizem Can
Keyword(s):  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Monetary Transmission Mechanism

scholarly journals Panel Data Analysis of Monetary Transmission Mechanism for European Union Countries

2017 ◽  
Vol 4 (2) ◽  
pp. 42
Author(s):  
Dina Cakmur Yildirtan ◽  
Selin Sarili
Keyword(s):  
European Union ◽  
Interest Rates ◽  
Debt Crisis ◽  
Panel Data Analysis ◽  
Aggregate Demand ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Response Analysis ◽  
Data Set ◽  
Monetary Transmission Mechanism

Monetary transmission mechanism is the mechanism which shows  in what ways and what extent interaction between the real economy-monetary policy, impacts aggregate demand and production. While transmission channels or mechanisms traditionally classified they divided into three categories; interest rates, Exchange rates and other asset prices.In this study to test the existence of the European debt crisis by the monetary transmission mechanism, 15 members of European Union country by using annual (2002-2014) data set were included into study. We use panel unit root tests to analyze whether the variables in the model are stationary or not. For the countries included in the study, panel causality tests developed by Granger is applied. Panel Vector Autoregressive Model has been estimated and results of Impulse-Response Analysis and Variance Decomposition have been interpreted.

scholarly journals ALUR TRANSMISI DAN EFEKTIFITAS KEBIJAKAN MONETER GANDA DI INDONESIA

2012 ◽  
Vol 14 (3) ◽  
pp. 283-315
Author(s):  
Ascarya Ascarya
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Negative Impact ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Monetary Transmission Mechanism ◽  
Monetary System ◽  
Data Form ◽  
Pass Through ◽  
The Interest Rate

This study aims to investigate transmission mechanism of dual monetary system from conventional and Islamic policy rates to inflation and output using Granger and VAR methods on monthly Indonesian banking data form January 2003 to December 2009. The result shows that conventional transmission mechanismsfrom conventional policy rate are all linked tooutput and inflation, while Islamic policy rate are not linked to output and inflation.In addition, the interest rate, credit and conventional interbank rate shocks give negative and permanent impacts to inflation and output, while PLS, financing and Islamic interbank PLS, as well as SBIS(Central Bank Shariah Certificate) as Islamic policy rate shocks give positive and permanent impacts to inflation and output. SBI (Central Bank Certificate) as conventional policy givespositive impact to inflation and negative impact to output.Keywords: Monetary transmission mechanism, Interest rate pass through, Conventional Banking, Islamic BankingJEL Classification: E43, E52, G21, G28

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