Author : Ila Patnaik
Release : 2011-01-01
Genre : Business & Economics
Kind : eBook
Book Rating : 834/5 ( reviews)
Book Synopsis Monetary Policy Transmission in an Emerging Market Setting by : Ila Patnaik
Download or read book Monetary Policy Transmission in an Emerging Market Setting written by Ila Patnaik. This book was released on 2011-01-01. Available in PDF, EPUB and Kindle. Book excerpt: Some emerging economies have a relatively ineffective monetary policy transmission owing to weaknesses in the domestic financial system and the presence of a large and segmented informal sector. At the same time, small open economies can have a substantial monetary policy transmission through the exchange rate channel. In order to understand this setting, we explore a unified treatment of monetary policy transmission and exchangerate pass-through. The results for an emerging market, India, suggest that the most effective mechanism through which monetary policy impacts inflation runs through the exchange rate.