Jean Francois Goux () (GATE (CNRS) and Universit 004cumir0065 Lyon 2, France) Charbel Cordahi () (Universit 0053aint Esprit de Kaslik (USEK), Kaslik, Lebanon)
Abstract
We show that an American monetary shock wields an influence, though limited, over the Lebanese output in accordance with the literature advances. However, as we are waiting for a stronger transmission of U.S. short-term rates to Lebanese short term rates, we notice that this transmission is weak in the first year. The result can be explained by the presence of pricing-to-market. After the end of the first year, we find the traditional result where the increase in the American interest rate is transmitted integrally to the Lebanese interest rate. We recognize this phenomenon as the dollarization effect.
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Publisher Info
Paper provided by Faculty of economics, Department of Economics in its series Working Papers with number
200733.
Length: 21 pages Date of creation: Aug 2007 Date of revision:
Sep 2007 Publication status: Published in Panoeconomicus, September 2007, pages 303-324 Handle: RePEc:voj:wpaper:200733
Find related papers by JEL classification: E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates F3 - International Economics - - International Finance F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance