How to order
IMF Publications

Working Papers in full text
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All


Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile



Monetary Transmission in Low Income Countries

Author/Editor: Mishra, Prachi | Montiel, Peter | Spilimbergo, Antonio
Authorized for Distribution: October 1, 2010
Electronic Access: Free Full Text (PDF file size is 1,037KB)
Use the free Adobe Acrobat Reader to view this PDF file.
 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper reviews monetary transmission mechanisms in low-income countries (LICs) to identify aspects of the channels that may operate differently in LICs relative to advanced and emerging economies. Given the weak institutional frameworks, reduced role of securities markets, imperfect competition in the banking sector and the resulting high cost of bank lending to private firms, the traditional channels (interest rate, bank lending, and asset price) are impaired in LICs. The exchange rate channel is also undermined by central bank intervention in the foreign exchange market. These conclusions are supported by review of the institutional frameworks, statistical analysis, and previous literature.
 
Order a print copy
Series: Working Paper No. 10/223
Subject(s): Asset prices | Banking sector | Central bank policy | Cross country analysis | Exchange rates | Financial institutions | Financial intermediation | Loans | Low-income developing countries | Monetary policy | Monetary transmission mechanism | Securities markets
Author's keyword(s): monetary policy | exchange rate | interest rate | banks | institutions
 
English  
    Published:   October 1, 2010        
            Format:   Paper
    Stock No:   WPIEA2010223   Pages:   42
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
Please address any questions about this title to publications@imf.org.