Measuring and Mending Monetary Policy Effectiveness Under Capital Account Restrictions : Lessons from Mauritania /

I propose a new approach to identifying exogenous monetary policy shocks in low-income countries with capital account restrictions. In the case of Mauritania, a domestic repatriation requirement is the key institutional characteristic that allows me to establish exogeneity. Unlike in advanced countr...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Blotevogel, Robert
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2013.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2013/077
Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:I propose a new approach to identifying exogenous monetary policy shocks in low-income countries with capital account restrictions. In the case of Mauritania, a domestic repatriation requirement is the key institutional characteristic that allows me to establish exogeneity. Unlike in advanced countries, I find no evidence for a statistically significant impact of exogenous monetary policy shocks on bank lending. Using a unique bank-level dataset on monthly balance sheets of six Mauritanian banks over the period 2006-11, I estimate structural vector autoregressions and two-stage least square panel models to demonstrate the ineffectiveness of monetary policy. Finally, I discuss how a reduction in banks' loan concentration ratios and improvements in the liquidity management framework could make monetary stimuli more effective.
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Beschreibung:1 online resource (35 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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