Monetary Policy and its Transmission in a Globalised World

Zorzi, Michele Ca’; Dedola, Luca; Georgiadis, Georgios; Jarociński, Marek; Stracca, Livio; Strasser, Georg

doi:10.2139/ssrn.3599928

Cited by 21 publications

(10 citation statements)

References 77 publications

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“…A similar linkage is possible to note in the case of China, thus they concluded that the Federal Reserve is the primary in the Global Financial Cycle. Regarding the two large, they confirm others' views (Zorzi, Dedola, Georgiadis, & Jarociński, 2020) about the hierarchy: the influence of the Federal Reserve is larger than that of the European Central Bank, but the channels of spillovers are broadly similar. (Miranda-Agrippino & Rey, 2022) Several authors contributed to this discussion over the years, thus, it is worth summarizing some of these papers.…”

Section: Cross-border Flowssupporting

confidence: 79%

Monetary Policy Spillovers – The Impact of Advanced Central Banks’ Decisions on Emerging Financial Markets

Sztanó

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The thesis delves into the impact of advanced central banks' monetary policies on emerging government bond markets, the so-called 'monetary policy spillovers.' Over the past decade, there has been a reported correlation between interest rates on advanced and emerging financial markets. Following the Global Financial Crisis, substantial international capital flows occurred, particularly to government bond markets of emerging countries, influenced by the aggressive monetary easing of the major central banks. The research aims to address the puzzling question of the extent to which large central banks impact emerging financial markets. It outlines a research agenda to examine the size of monetary policy spillovers in the case of the Federal Reserve, the European Central Bank, and the Bank of Japan. Beyond the magnitude of the spillover effect, regional differences and factors influencing recipient countries' sensitivity to international shocks are also examined. In summary, the thesis contributes to the international finance literature by shedding light on the relationship between advanced central banks’ monetary policy decisions and the dynamics of emerging government bond markets.

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Section: Cross-border Flowssupporting

confidence: 79%

Monetary Policy Spillovers – The Impact of Advanced Central Banks’ Decisions on Emerging Financial Markets

Sztanó

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“…4 For a discussion on the lack of international spillovers of ECB interest rates see Ca'Zorzi et al [2020].…”

Section: Data Methodology and Identificationmentioning

confidence: 99%

“…For a discussion on the small or lack of international transmission of ECB interest rates seeCa'Zorzi et al [2020].2 Also related to this paper,Camara and Ramirez-Venegas [2022] shows that Fed and ECB shocks affect the Chilean economy through different transmission channels by exploiting firm level balance sheet data.…”

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confidence: 99%

Spillovers of Us Interest Rates: Monetary Policy & Information Effects

Camara¹

2022

SSRN Journal

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“…Excessive deleveraging raises concerns among MFIs regarding their financial stability and regulatory compliance, which may drift their mission from promoting financial inclusion. To facilitate the capital allocation through credit by financial institutions to support the entity economy, scholars have highlighted the importance of improving the transmission mechanism of monetary policy to enhance the service capabilities of the financial system and achieve economic goals (Anarfo et al, 2019;Buch et al, 2019;Ca'Zorzi et al, 2020). In 2018, China's financial work shifted its focus from strong supervision to unblocking and improving the transmission mechanism of prudent monetary policy to address the negative impacts of slowing economic growth, weak credit growth, and depletion of credit funds.…”

Section: Introductionmentioning

confidence: 99%

Monetary Policy and Deleveraging of Microfinance Institutions in China: A Dynamic Threshold Approach

Li,

Mohd Ashhari,

Hisyam Ab Razak

et al. 2024

IJARBSS

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By constructing the dynamic panel model and dynamic threshold model, this paper empirically analyzes the direct impact of monetary policy transmission on deleveraging initiatives of 204 microfinance institutions (MFIs) in China from 2012 to 2021, and the interactive effects of different monetary policy tools. The empirical investigations find that: the quantitative monetary policy transmission directs a negative impact on MFIs' deleveraging, while the direct macro-control of price-based monetary policy tool is not significant. When two monetary policy tools interact, the inhibitory effect of quantitative monetary policy on MFIs' deleveraging weakens once the price-based monetary policy tightening exceeds the threshold. Additionally, as the endogenous money multiplier amplifies the actual money quantity, price-based monetary policy starts to play its role in stable controllability, and MFIs gradually accept market-oriented interest rate mechanisms to adjust their deleveraging initiatives. The findings herein contribute to the significant implications of the study. The central bank should characterize the quantity control of quantitative monetary policy and the structural control of price-based monetary policy to formulate a scientific monetary policy. By improving the market-oriented interest rate mechanism of microfinance and coordinating with macroprudential regulations, it could achieve micro-prudential guidance on MFIs' deleveraging progress, as well accelerate economic transition and structural leverage adjustment.

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Monetary Policy and its Transmission in a Globalised World

Cited by 21 publications

References 77 publications

Monetary Policy Spillovers – The Impact of Advanced Central Banks’ Decisions on Emerging Financial Markets

Monetary Policy Spillovers – The Impact of Advanced Central Banks’ Decisions on Emerging Financial Markets

Spillovers of Us Interest Rates: Monetary Policy & Information Effects

Monetary Policy and Deleveraging of Microfinance Institutions in China: A Dynamic Threshold Approach

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