Naslov
A comparative analysis of the monetary policy transmission channels in the U.S: a wavelet- based approach

Autori
Oddo, Luigi ; Bosnjak, Mile

Izvornik
Applied Economics (0003-6846) 53 (2021), 20; 1-16

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
Monetary policy transmission mechanism ; wavelets ; unconventional monetary policy ; ; great recession ; United States

Sažetak
This paper evaluates competing approaches to assess the effectiveness of transmission channels for the U.S. monetary policy from 1°Q 1995 to 3°Q 2019. While evaluating the competing approaches, the paper follows wavelet coherence approach providing results in time and frequency domain. The results show how money and credit channels work quite well during low volatile periods generally, whereas they suggest that these channels are less effective during periods of financial turmoil and very low interest rate. However, investment-based channels and the bank-lending channel revisited version show some effects also during periods of instability. In more detail, investment-based channels and the bank- lending channel revisited appear to be the most effective monetary policy transmission mechanisms, while the traditional banking- lending channel seems effective only in low volatile periods. Finally, the results for consumption-based channels and international trade-based channels show the least effectiveness.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA