Monetary Policy during Transition: An Overview

Melo, de; Denizer, Martha; Cevdet,

doi:10.1017/cbo9780511896699.002

Cited by 9 publications

(9 citation statements)

References 27 publications

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“…Hence, when credit controls are used on the IS curve, the central bank is also more likely to use quantitative direct instruments on the LM curve. Note however that it is not required from a theoretical point of view and that some countries have combined or combine open market operations with credit ceilings (De Melo, Denizer 1997).…”

Section: 2 the Case For Credit Controlsmentioning

confidence: 99%

“…12 The standard and seminal reference is Gordon and Leeper (1992). 8 1973, Alexander et al 1995, Farahbaksh and Sensenbrenner 1996, De Melo and Denizer 1997, do not rely on a well specied model of the economy. On the contrary, the usual dynamic stochastic general equilibrium models that are used nowadays to assess the role of monetary policy rely on interest rate policies and include credit only as a provider of frictions that can amplify other kind of shocks.…”

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confidence: 99%

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Monetary Policy without Interest Rates: Evidence from France’s Golden Age (1948 to 1973) Using a Narrative Approach

Monnet

2014

American Economic Journal: Macroeconomics

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Central banking in France from 1948 to 1973 was a paradigmatic example of a policy that relied on quantities rather than interest rates. Standard SVAR analyses support the common view that monetary policy was ineffective during this period. However, this approach fails to identify the stance of monetary policy since it does not account for the specificity of quantitative controls on money and credit. An alternative identification strategy based on a narrative approach suggests that monetary policy shocks had strong and lasting effects in the conventional direction and accounted for nearly half of the variance in output and price levels. (JEL E43, E44, E52, E58, G21, G28, N14)

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Section: 2 the Case For Credit Controlsmentioning

confidence: 99%

mentioning

confidence: 99%

Monetary Policy without Interest Rates: Evidence from France’s Golden Age (1948 to 1973) Using a Narrative Approach

Monnet

2014

American Economic Journal: Macroeconomics

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“…For an assessment of its first year of application, see European Commission (1999a). 56 Recent progress made by CEECs toward adopting indirect instruments of monetary policy is documented in de Melo and Denizer (1997). 57 See, for example, IMF (1997b, Chapter V) and EBRD (1998, Part II).…”

Section: The Need For An Efficient Market-oriented Financial Sectormentioning

confidence: 99%

Selected transition and Mediterranean countries: an institutional primer on EMU and EU accession

Temprano-Arroyo

Feldman

1999

Economics of Transition

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The paper examines the institutional channels through which Economic and Monetary Union (EMU) in the European Union (EU) can affect the transition countries of Central and Eastern Europe and three Mediterranean countries that aspire to join the EU.After describing the current institutional framework for relations between the EU and these countries, the paper considers two categories of institutional implications of EMU. The first stems from the need to satisfy the Maastricht convergence criteria before joining the euro area. Although the Maastricht criteria are not accession criteria, many of the countries reviewed are already formulating their macroeconomic policies in a way that will facilitate convergence toward the Maastricht targets. The second implication stems from the need to adopt the EU's institutional and legal provisions in the area of EMU, such as those referring to the establishment of independent central banks, the prohibition of central bank financing of the government and the liberalization of capital movements. Finally, 742 the paper discusses some of the key policy issues that EMU raises for the countries reviewed, in particular regarding exchange rate policy, capital account liberalization and the possible conflict between growth-enhancing measures and the Maastricht criteria.JEL classification: F15, F33.

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“…In addition, governments often mandated the banking system to undertake quasi-fiscal activities-most often extending (subsidized) credits to state enterprises (Claessens and Peters, 1997, analyze the case of Bui]garia; Claessens and Abdelati, 1995, the case of Romania). Among slower reformers, credit subsidies from the central bank were on the order of three times the size of the fiscal deficit (De Melo and Denizer, 1997). Much of these fiscal and quasi-fiscal deficits ended up being funded through seignorage and inflation tax.…”

Section: Officialflowsmentioning

confidence: 99%