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The transmission of monetary policy in emerging economies during tranquil and turbulent periods

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  • Yakubu, Jibrin
  • Salisu, Afees A.
  • Musa, Abdullahi
  • Omosola, Adebola
  • Belonwu, Maximillian
  • Isah, Kazeem

Abstract

We construct a theory-based interest rate channel of monetary policy transmission within an SVAR-X model for BRICS. We find a shift in the transmission of monetary policy between the tranquil and turbulent periods for BRICS particularly in Brazil, Russia and China. Thus, the transmission of monetary policy in this region can be considered episodic. We also establish the need to account for seasonal effects in the SVAR model for improved model performance.

Suggested Citation

  • Yakubu, Jibrin & Salisu, Afees A. & Musa, Abdullahi & Omosola, Adebola & Belonwu, Maximillian & Isah, Kazeem, 2020. "The transmission of monetary policy in emerging economies during tranquil and turbulent periods," Finance Research Letters, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319307147
    DOI: 10.1016/j.frl.2019.09.010
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    Cited by:

    1. Jingyuan Yang & Ling Wang & Ziyuan Sun & Fangming Zhu & Yihui Guo & Yan Shen, 2021. "Impact of Monetary Policy Uncertainty on R&D Investment Smoothing Behavior of Pharmaceutical Manufacturing Enterprises: Empirical Research Based on a Threshold Regression Model," IJERPH, MDPI, vol. 18(21), pages 1-17, November.

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