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E-book
Author Primus, Keyra, author, (IMF staff)

Title The effectiveness of monetary policy in small open economies : an empirical investigation / by Keyra Primus
Published [Washington, D.C.] : International Monetary Fund, [2016]
©2016

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Description 1 online resource (39 pages) : color illustrations
Series IMF working paper ; WP/16/189
IMF working paper ; WP/16/189.
Summary This paper examines the relative effectiveness of the use of indirect and direct monetary policy instruments in Barbados, Jamaica and Trinidad and Tobago, by estimating a restricted Vector Autoregressive model with Exogenous Variables (VARX). The study assumes that the central bank conducts monetary policy using a Taylor-type rule and it evaluates the effects of a reserve requirement policy. The results show that although a positive shock to the policy interest rate has a direct effect on commercial banks' interest rates, there is a weak transmission to the real variables. Furthermore, an increase in the required reserve ratio is successful in reducing private sector credit and excess reserves, while at the same time alleviating pressures on the exchange rate. The findings therefore indicate that central banks in small open economies should consider using reserve requirements as a complement to interest rate policy, to achieve their macroeconomic objectives
Notes "September 2016."
At head of title: International Monetary Fund, Middle East and Central Asia Department
Bibliography Includes bibliographical references (pages 23-25)
Notes Description based on online resource; title from pdf title page (IMF.org Web site, viewed October 18, 2016)
Subject Monetary policy -- Barbados
Monetary policy -- Jamaica
Monetary policy -- Trinidad and Tobago
Interest rates -- Barbados
Interest rates -- Jamaica
Interest rates -- Trinidad and Tobago
Fractional reserve banking -- Barbados
Fractional reserve banking -- Jamaica
Fractional reserve banking -- Trinidad and Tobago
Autoregression (Statistics)
Autoregression (Statistics)
Fractional reserve banking
Interest rates
Monetary policy
Barbados
Jamaica
Trinidad and Tobago
Form Electronic book
Author International Monetary Fund, publisher.
International Monetary Fund. Middle East and Central Asia Department, issuing body.
ISBN 9781475536874
1475536879
1475538081
9781475538083