Monetary policy spillover to small open economies: Is the transmission different under low interest rates?
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F23%3A10251692" target="_blank" >RIV/61989100:27510/23:10251692 - isvavai.cz</a>
Alternative codes found
RIV/00216224:14560/23:00130112 RIV/61384399:31110/23:00058930
Result on the web
<a href="https://www.sciencedirect.com/science/article/pii/S1572308923000165" target="_blank" >https://www.sciencedirect.com/science/article/pii/S1572308923000165</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jfs.2023.101116" target="_blank" >10.1016/j.jfs.2023.101116</a>
Alternative languages
Result language
angličtina
Original language name
Monetary policy spillover to small open economies: Is the transmission different under low interest rates?
Original language description
We explore the impact of low and negative monetary policy rates in core world economies on bank lending in four small open economies - Canada, Chile, the Czech Republic and Norway - using confidential bank-level data. We show that the impact on lending in these small open economies depends on the interest rate level in the core. During normal times, monetary policy cuts in the core can reduce credit supply in small open economies. In contrast, when interest rates in the core are low, further expansionary monetary policy increases lending in small open economies, consistent with an international bank lending channel. These results have important policy implications, suggesting that central banks in small open economies should watch for the impact of potential regime switches in core economies' monetary policy when rates shift to and from the very low end of the distribution.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50206 - Finance
Result continuities
Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Financial Stability
ISSN
1572-3089
e-ISSN
1878-0962
Volume of the periodical
65
Issue of the periodical within the volume
April
Country of publishing house
US - UNITED STATES
Number of pages
14
Pages from-to
101116
UT code for WoS article
000942597700001
EID of the result in the Scopus database
2-s2.0-85147865979