IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Monetary transmission mechanism in Poland.The strenght and delays

Monetary transmission mechanism is in the core of central banking. Its understanding however seems to be especially important within direct inflation targeting strategy. In particular, it facilitates the adequate setting of headline interest rates, consistent with declared objectives of the monetary policy. This paper looks into the strength of the monetary transmission mechanism in Poland as well as the delays in this process. It does so by using a new version of the small structural model of monetary transmission mechanism in Poland. There are three major differences between the new version of the model and the previous one, discussed in detail in Lyziak (2001). Firstly, in the version of the model presented in this paper, the interest rate channel and the banklending channel are modelled jointly. Secondly, due to the use of more adequate measures of the real exchange rate and a change of the sample period, both direct and indirect (demand) effects of the exchange rate channel are captured. Thirdly, in the new version of the model price behaviour of selected items of the consumer basket - i.e. foodstuffs, oil and remaining items - is modelled separately. Based on the model simulations, the paper confirms that the effectiveness of the monetary transmission mechanism in Poland has increased. It is reflected in a relatively stronger impact of interest rate impulses on inflation relative to the conclusions from the previous version of the model.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.nbp.pl/publikacje/materialy_i_studia/26_en.pdf
Download Restriction: no

Paper provided by National Bank of Poland, Economic Institute in its series National Bank of Poland Working Papers with number 26.

as
in new window

Length: 24
Date of creation: 2002
Date of revision:
Handle: RePEc:nbp:nbpmis:26
Contact details of provider: Postal: 00-919 Warszawa ul. Świętokrzyska 11/21
Phone: (0-22) 653 10 00
Fax: (0-22) 620 85 18
Web page: http://www.nbp.pl/Homen.aspx?f=/en/publikacje/materialy_i_studia/informacja_en.html

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nbp:nbpmis:26. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ewa Szymecka)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.