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Transmission Mechanism of Monetary Policy in Centraland Eastern Europe

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  • Georgy Ganev
  • Krisztina Molnar
  • Krzysztof Rybinski
  • Przemyslaw Wozniak

Abstract

The purpose of this study is to review the existing literature on transmission mechanism in CEE and put it in a broader context of the problems related to research on monetary policy. Also, we attempted to conduct empirical analysis for 10 transition economies using analogous methodology for the same sample period 1995-2000. In this comparative framework a series of Granger causality tests and impulse response analysis were carried out to asses the strength of two major transmission channels: interest rate and exchange rate channel. Also in the empirical part, we tried to look for the existence of long-run relationships between the basic set of macroeconomic variables in the countries under investigation.

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Bibliographic Info

Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Reports with number 0052.

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Length: 40 Pages
Date of creation: 2002
Date of revision:
Handle: RePEc:sec:cnrepo:0052

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Keywords: transmission mechanism; monetary policy; inflation; transition;

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