Author: Sarfaraz Ali Shah SyedPublisher:
ISBN:
Category :
Languages : en
Pages : 310
Book Description
Despite the prevalent consensus on the short to medium-run effects of monetary policy shocks on the real economy and long-run effects on inflation; the relative importance of the channels of monetary transmission mechanism (MTM) still remains open to debate. In this regard, recent findings of the monetary literature and the important developments in the economic and financial structure of the economies on the whole invoke new insights and important questions on the relevancy of monetary policy. The new era of increased openness has also started posing new challenges to the existing monetary transmission mechanism and the policy effects thereof. However, this area has yet not been explored on merit by the researchers, and the existing literature explains only a small part of this globalization -inflation puzzle. Therefore, this thesis aims to make a contribution to this debate. Starting with the analysis of monetary transmission the corresponding channels and the lags we develop a theoretical model to explain the developments and challenges to the monetary policy in the current scenario of increased globalization. The succeeding section deals with the data of a large set of economies, where in the first instance we compute the potential output and subsequently the output gap for the whole sample. Going ahead we conduct panel estimation using Phillips curve equation for our sample to investigate the globalization impacts on the economies on the whole and in parts based on the regional and economic groups.