Financial structure, institutional quality and monetary policy transmission: A Meta-Analysis
- Rudrani Bhattacharya, Shruti Tripathi & Sahana Roy Chowdhury
- Jul 2019
- National Institute of Public Finance and Policy (NIPFP)
- India
The long-standing empirical literature of monetary policy transmission acknowledges weak transmission of monetary policy shock to real activities and inflation in emerging economies. Fragile financial system, low level of financial integration and weak institutions are often cited as the reasons for lack of monetary policy transmission in these economy. This paper investigates to what extent these factors explain the variation in the extent of monetary policy transmission in a comprehensive set of developed and developing economies.
