The paper looks at the challenges of conducting monetary policy in a context of high dollarization of the banking … available to enhance the effectiveness of monetary policy are limited. After exploring the pros and cons of different exchange … regimes we conclude that strengthening the current monetary policy framework remains the first-best option, given the country …

in the analysis of monetary policy in low-income countries (LICs), with an application to Kenya. We provide a general … systematic role in monetary policy, and (iii) target misses mainly reflect shocks to money demand. Simulations of the model under …. Our findings highlight the benefits of a model-based approach to monetary policy analysis in LICs, including in countries …

Many central banks in low-income countries in Sub-Saharan Africa are modernising their monetary policy frameworks …. Here we take a narrative approach, following Romer and Romer (1989), and center on a significant tightening of monetary … policy that took place in 2011 in four members of the East African Community: Kenya, Uganda, Tanzania and Rwanda. We find …

frameworks and some have implemented or are moving towards inflation targeting (IT) regimes. Strengthening the monetary policy … frameworks of CADR is key to improving the effectiveness of monetary policy. The paper reviews the literature on the reforms … needed for strengthening the monetary policy frameworks, and examines the experiences of IT countries, Chile, Peru, and …

This paper aims to shed light on the role mean and volatility spillovers of U.S. monetary policy played for asset … models in which we distinguish between a conventional and an unconventional monetary policy phase to account for possible … heterogeneity in spillover effects. Our results suggest that the anticipation of loose U.S. monetary policy has diverse effects …

Monetary policy implementation could, in theory, be constrained by deeply negative rates since overnight market … model of monetary policy implementation (Poole 1968). Importantly, we show that monetary policy is not constrained when just … the implementation of monetary policy such that the overnight rate equals the target rate. …

This paper studies the non-linear response of the term structure of interest rates to monetary policy shocks. We show … that uncertainty about monetary policy changes the way the term structure responds to monetary policy. A policy tightening … are robust to the measurement of monetary policy uncertainty and the definition of the monetary policy shock. We argue …