The Transmission Mechanisms of Monetary Policy Shocks and International Financial Markets
Journal Name:
- Dumlupınar Üniversitesi Sosyal Bilimler Dergisi
Keywords (Original Language):
| Author Name | University of Author | Faculty of Author |
|---|---|---|
Abstract (2. Language):
This paper, by using VAR methodology, presents evidence that the monetary policy of a
large country causally affects not only that country’s stock prices but also asset prices abroad. Besides
this it also tests the theoretical implications of the four major international macroeconomic theories
and compares the test results with these predictions. In theory expansionary monetary shocks of a
large country will reduce domestic and world interest rates, depreciate the domestic currency, and
increases domestic output. Increases in the domestic output will raise the demand for foreign goods.
The depreciation of the domestic currency, in turn, will decrease foreign price levels and increases
foreign real balances, since the depreciation of the currency reduces the foreign currency price of
imports. The fall in the foreign country interest rates and the aggregate demand spillover from the
large economy will stimulate foreign output, consumption and investment. Thus, expansionary
monetary policy in the large economy should not only increase output and, thereby, asset returns
domestically, but also abroad.
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Abstract (Original Language):
Bu makale, VAR tekniginden yararlanarak, gelismeis ekonomiye sahip bir ulke olan Amerika
Birlesik Devletlerinin para politikasi soklarinin bu ulke ve diger G-7 ulkelerinin makroekonomik
degiskenlerine ve ozellikle uluslararasi finansal piyasalara nasil etki ettigini ortaya koymaktadir.
Bunun yaninda, para polikasinin aktarim mekanizmasi ve ilgili ana teoriler aciklanmis ve cikarimlari
test edilerek bu test sonuclari teorilerin cikarimlari ile karsilastirilmistir. Teorik olarak, buyuk bir
ulkenin genisletici para politikasi yerli ve uluslararasi faiz oranlarini dusururken, paranin degerini
dusurur ve yerli mili gelir duzeyinin artmasina sebep olur. Yabanci faiz oranlarinin dusmesi ve buyuk
ulkeden gelen ithalat talebinin artmasi sonucu ortaya cikan genisletici etki ayni zamanda yabanci
ulkelerin tuketim, yatirim ve milli gelirlerinin de artmasi sonucunu dogurur. Sonuc olarak genisletici
para politikasi sadece ilgili ulkenin degil ayni zamanda entegre diger ekonomilerin refah durumunu
iyilestirirken, finansal piyasalarada olumlu katkilar saglamis olur.
FULL TEXT (PDF):
- 18
145-174