A Discussion of the Monetary Condition Index
The monetary conditions index (MCI) was developed in the early 1990s with the aim of capturing two of the important monetary transmission channels by combining both interest rates and exchange rates. This article examines the development of the MCI and explores the difficulties with implementing it as well as many of the problems associated with interpreting its results. These problems also need to be borne in mind with the recent interest in developing measures of how financial variables affect the economy through the development of financial condition indicators.
Volume (Year): (2010)
Issue (Month): (January)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ben S. Bernanke & Frederic S. Mishkin, 1997.
"Inflation Targeting: A New Framework for Monetary Policy?,"
NBER Working Papers
5893, National Bureau of Economic Research, Inc.
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- Duguay, Pierre, 1994. "Empirical evidence on the strength of the monetary transmission mechanism in Canada: An aggregate approach," Journal of Monetary Economics, Elsevier, vol. 33(1), pages 39-61, February.
- Pier Francesco Asso & Robert Leeson, 2012. "Monetary Policy Rules - From Adam Smith to John Taylor," Book Chapters, in: Evan F. Koenig & Robert Leeson & George A. Kahn (ed.), The Taylor Rule and the Transformation of Monetary Policy, chapter 2 Hoover Institution, Stanford University.
- Kimberly Beaton & René Lalonde & Corinne Luu, 2009. "A Financial Conditions Index for the United States," Discussion Papers 09-11, Bank of Canada.
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