Dergiler / Reforma / 2017 / Sayı: 75
VAR ANALYSIS OF THE MONETARY TRANSMISSION MECHANISM IN KYRGYZ REPUBLIC
- Dergi
- Reforma
- Sayı
- 2017 · Sayı: 75
- Sayfa
- 43–51
- DOI
- —
Özet
The process through which monetary policy decisions affect aggregate demand in the economy and the inflation rate is generally known as the monetary policy transmission mechanism. This paper employs VAR approach to investigate the role of the different channels of the monetary transmission mechanism on real GDP and price level in Kyrgyz Republic. The findings suggest that the exchange rate channel is important in determining the inflation level and the interest rate channel has some effects to real GDP. Significance of bank lending channel in GDP growth is supported by the results.
Abstract
The process through which monetary policy decisions affect aggregate demand in the economy and the inflation rate is generally known as the monetary policy transmission mechanism. This paper employs VAR approach to investigate the role of the different channels of the monetary transmission mechanism on real GDP and price level in Kyrgyz Republic. The findings suggest that the exchange rate channel is important in determining the inflation level and the interest rate channel has some effects to real GDP. Significance of bank lending channel in GDP growth is supported by the results