The monetary policy transmission mechanism channels efficiency in the Republic of Belarus

Abstract

Understanding the functioning of the transmission mechanism is one of the most important elements for the implementation of an effective monetary policy. In the context of the National Bank of the Republic of Belarus gradual transition to the inflation targeting framework, the issue of increasing the efficiency monetary transmission is of particular relevance. To solve it at the initial stage, it is necessary to evaluate the efficiency of functioning of individual channels of the transmission mechanism, which is the aim of this study. Based on the construction of the semi-structural macroeconomic general equilibrium model for the Republic of Belarus, the contributions of individual transmission mechanism channels to the change in the main macroeconomic variables in response to monetary impulse are revealed. The results demonstrate the predominance of the interest rate channel in the dynamics of economic activity and the expectations channel in the dynamics of inflation in the Republic of Belarus.

Author Biography

Anatoly I. Kharitonchik, Belarus State Economic University, 26 Partizanski Avenue, Minsk 220070, Belarus

postgraduate student at the department of currency circulation, credit and stock market, faculty of finance and banking

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Published
2020-09-12
Keywords: transmission mechanism, monetary policy, interest rate, inflation, output gap, exchange rate, semi-structural model
How to Cite
Kharitonchik, A. I. (2020). The monetary policy transmission mechanism channels efficiency in the Republic of Belarus. Journal of the Belarusian State University. Economics, 1, 29-40. Retrieved from https://journals.bsu.by/index.php/economy/article/view/2286
Issue
No 1 (2020): Journal of the Belarusian State University. Economics
Section
E. Macroeconomics and Monetary Economics

Copyright (c) 2020 Journal of the Belarusian State University. Economics

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