ASSESSMENT OF THE MONETARY POLICY TRANSMISSION MECHANISM IN THE NEW EU MEMBER STATES

Original scientific paper
Autor: Sanja Bungin
JEL: E52; E58; E44; F31
doi: 10.5937/bankarstvo1601092B
SCINDEX

Summary: In order to completely understand and analyse the transmission mechanism, it is necessary to observe all factors conditioning its overall efficiency as well as the efficiency of individual transmission channels. This paper focuses on countries that have successfully passed the transition period and have experience with implementing different monetary policy regimes. The evolution of monetary policy resulted in the development of instruments through which central banks influence the real sector activity by means of a transmission mechanism. The empirical analysis based on econometric tools investigates the efficiency of transmission mechanism channels, or more precisely, their significance in the monetary targeting regime. With a view to reaching the conclusion about the direction in which it is necessary to develop the structure of the real and financial sector, aimed at a better functioning of monetary policy instruments, the paper features a theoretical analysis of the characteristics of the monetary policy in the developed economies, as well as the structural characteristics of these economies.

Back to top
Back to top