The Transmission of Monetary Policy in Israel
IMF Working Papers, August 1, 1998
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- The Transmission of Monetary Policy in Israel
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Bibliographic details
- Authors: Fiorella De Fiore
- Published: August 1, 1998
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451943504.001
Study focus and research questions
- Investigates the transmission of Israeli monetary policy since 1990.
- Two issues addressed:
- The extent to which monetary policy exerts real effects.
- The relative importance of different transmission channels.
Key empirical findings
- The impact of monetary restraints on aggregate industrial production is found to be small.
- Industrial sectors open to trade appear to suffer to a larger extent than closed sectors.
- Three transmission channels are analyzed by comparing the empirical evidence to that predicted by theory:
- The credit channel may be an important mechanism of transmission.
- The exchange rate channel may be an important mechanism of transmission.
- The interest rate channel finds weak support in the data.
Subject areas and keywords
- Subject: Bank credit, Credit, Currencies, Exchange rates, Financial services, Foreign exchange, Industrial production, Money, Production, Real interest rates
- Keywords: central bank, contractionary monetary policy, Credit, Currencies, discount rate, exchange rate channel, Exchange rates, expansionary fiscal policy, foreign currency, Industrial production, inflation rate, interest rate channel, Israel, monetary policy, Real interest rates, reducestotal availability, trade deficit, transmission mechanism, transmission mechanisms, WP
Content in this bundle
- Transmission of Monetary Policy in Israel - WP/98/114