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Capital flight and political risk

Author

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  • Lensink, Robert
  • Hermes, Niels
  • Murinde, Victor

    (Groningen University)

Abstract

This paper investigates asymmetric effects of monetary policy over the business cycle. A two-state Markov Switching Model is employed to model both recessions and expansions. For the United States and Germany, strong evidence is found that monetary policy is more effective in a recession than during a boom. Also some evidence is found for asymmetry in the United Kingdom and Belgium. In the Netherlands, monetary policy is not very effective in either regime.

Suggested Citation

  • Lensink, Robert & Hermes, Niels & Murinde, Victor, 1998. "Capital flight and political risk," Research Report 98C34, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:98c34
    as

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    File URL: http://irs.ub.rug.nl/ppn/188210113
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    References listed on IDEAS

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