EVIDENCE ON MONETARY POLICY TRANSMISSION DURING TRANQUIL AND TURBULENT PERIODS

Authors

Chioma Peace Nwosu, Central Bank of Nigeria, NigeriaFollow
Afees Salisu, Ton Duc Thang University, VietnamFollow
Margaret Johnson Hilili, Central Bank of Nigeria, NigeriaFollow
Izuchukwu Ifeanyi Okafor, Central Bank of Nigeria, NigeriaFollow
Izuchukwu Oji-Okoro, Central Bank of Nigeria, NigeriaFollow
Idis Adediran, University of Ibada, Nigeria

Document Type

Article

Abstract

This paper evaluates monetary policy transmission in both tranquil and turbulentperiods for Mexico, Indonesia, Nigeria, and Turkey. Using a structural vectorautoregressive model, we find that the effect of structural shocks from supply, demand,and financial sources tend to fizzle out faster for Nigeria and Mexico compared toIndonesia and Turkey. Another important finding is that while monetary authoritiesin Indonesia and Turkey are more responsive to inflation those in Mexico and Nigeriaare more influenced by the exchange rate. We also observe differences in the conductof monetary policy between the tranquil and turbulent periods.

Recommended Citation

Nwosu, Chioma Peace; Salisu, Afees; Hilili, Margaret Johnson; Okafor, Izuchukwu Ifeanyi; Oji-Okoro, Izuchukwu; and Adediran, Idis (2019) "EVIDENCE ON MONETARY POLICY TRANSMISSION DURING TRANQUIL AND TURBULENT PERIODS," Bulletin of Monetary Economics and Banking: Vol. 22: No. 3, Article 4.
DOI: https://doi.org/10.21098/bemp.v22i3.1111
Available at: https://bulletin.bmeb-bi.org/bmeb/vol22/iss3/4

First Page

311

Last Page

350

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Nigeria

Affiliation

Central Bank of Nigeria