On the role of financial stress in the transmission of monetary policy

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Abstract

This paper examines the asymmetric impact of monetary policy shocks on real output growth considering the role of financial stress. We carry out our examination using monthly Turkey data over 1998:M1 and 2012:M12 and apply a threshold vector autoregression model. Our investigation presents evidence that the impact of monetary policy shocks on output growth is stronger during high financial stress periods. However, it is found that there is no sign asymmetry in the real effects of monetary policy shocks.

Original languageEnglish
Pages (from-to)107-119
Number of pages13
JournalIkonomicheski Izsledvania
Volume24
Issue number4
Publication statusPublished - 2015

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