Since 2014
Taking Stock: A Critical Review of Recent Research on Monetary Policy Transmission Mechanism
Jurnal Ekonomi Malaysia
View Archive Info| Field | Value | |
| Title |
Taking Stock: A Critical Review of Recent Research on Monetary Policy Transmission Mechanism
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| Creator |
Bahari, Zakaria
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| Description |
ABSTRACTThe classical and more recent literatures on the transmission of monetary policy on economic performance offer a wide range of issues. Among the issues are; the potential roles of financial intermediaries in economic growth, the transmission of monerary policy to real variables, and the choices of financial indicators. The last two issues, in providing financial services, tlze financial intermediaries contribute to the economic growth by transmitting monetary policy to real variables as well as becoming important financial indicators. Several studies find that the debt financing is important to firms, particular for financing investment of new project and to expand the current business activities. The question arises on how the monetary policy affect the firm behaviour? We will show that there are two complementary ways of explaining about how firm might be influenced by the changes of monerary policy. First, the balance sheet channel is identified whereby the condition of firm's balance sheets is a source of output fluctuation. Second, the bank lending channel that stresses the ability of monetary policy to regulate the pool of funds available to the bank-dependent firms. This paper provides the investigation of those issue.Keywords: monetary policy; debt transmission mechanism: balance sheet channel: bank lending channel
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| Publisher |
Universiti Kebangsaan Malaysia
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| Date |
2003-12-31
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article — |
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| Format |
application/pdf
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| Identifier |
http://ejournal.ukm.my/jem/article/view/2105
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| Source |
Jurnal Ekonomi Malaysia; Vol 37 (2003): Jurnal Ekonomi Malaysia
0126-1962 |
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| Language |
eng
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| Relation |
http://ejournal.ukm.my/jem/article/view/2105/1586
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