Journal Browser
Open Access Journal Article

Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets

by Olivia Thomas 1,*
1
Olivia Thomas
*
Author to whom correspondence should be addressed.
Received: 23 September 2022 / Accepted: 21 October 2022 / Published Online: 26 November 2022

Abstract

This paper investigates the impact of monetary policy on economic growth in emerging markets. Over the past few decades, these economies have experienced significant transformations, with monetary policy playing a crucial role in shaping their growth trajectory. The analysis, utilizing a panel of emerging market countries, examines the relationship between monetary policy instruments, such as interest rates and reserve requirements, and key economic indicators, such as GDP growth, inflation, and investment. The findings indicate that while monetary policy has generally been effective in stabilizing economic growth, its effectiveness varies across different emerging markets. Factors such as institutional weaknesses, high levels of inflation, and financial market vulnerabilities seem to mitigate the positive impact of monetary policy on economic growth. This paper further explores the potential for monetary policy adjustment and the importance of considering country-specific circumstances when formulating monetary policy in emerging markets.


Copyright: © 2022 by Thomas. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Cite This Paper
APA Style
Thomas, O. (2022). Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets. Economics and Finance Research Letters, 4(2), 34. doi:10.69610/j.efrl.20221126
ACS Style
Thomas, O. Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets. Economics and Finance Research Letters, 2022, 4, 34. doi:10.69610/j.efrl.20221126
AMA Style
Thomas O. Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets. Economics and Finance Research Letters; 2022, 4(2):34. doi:10.69610/j.efrl.20221126
Chicago/Turabian Style
Thomas, Olivia 2022. "Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets" Economics and Finance Research Letters 4, no.2:34. doi:10.69610/j.efrl.20221126

Share and Cite

ACS Style
Thomas, O. Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets. Economics and Finance Research Letters, 2022, 4, 34. doi:10.69610/j.efrl.20221126
AMA Style
Thomas O. Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets. Economics and Finance Research Letters; 2022, 4(2):34. doi:10.69610/j.efrl.20221126
Chicago/Turabian Style
Thomas, Olivia 2022. "Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets" Economics and Finance Research Letters 4, no.2:34. doi:10.69610/j.efrl.20221126
APA style
Thomas, O. (2022). Impact of Monetary Policy on Economic Growth: Evidence from Emerging Markets. Economics and Finance Research Letters, 4(2), 34. doi:10.69610/j.efrl.20221126

Article Metrics

Article Access Statistics

References

  1. Burbules, N. C., & Callister, T. A. (2000). Watch IT: The Risks and Promises of Information Technologies for Education. Westview Press.
  2. Blanchard, O., & Summers, L. H. (1987). Hysteresis in macroeconomics. NBER Macroeconomics Annual, 1, 15-88.
  3. Gertler, M. (1998). Inflation targeting: Lessons from the experience of industrialized countries. The World Bank Economic Review, 12(1), 1-19.
  4. Park, S. K., & Shin, K. S. (2002). The monetary transmission mechanism in emerging markets: Evidence from Asia. Journal of International Money and Finance, 21(1), 7-33.
  5. Eichenbaum, M., & Evans, C. L. (1995). The role of shocks and monetary policy in the business cycle: An empirical investigation. Journal of Political Economy, 103(3), 538-565.
  6. Mody, A., & Patnaik, I. (2003). The effectiveness of monetary policy in emerging markets. In NBER Macroeconomics Annual (pp. 39-88). MIT Press.
  7. Grier, K. B., & Tullock, G. (1989). An empirical study of economic growth and the role of the state. Public Choice, 61(3), 47-70.
  8. Bernanke, B. S., & Gertler, M. (1995). Inside the black box: The credit channel of monetary policy transmission. Journal of Economic Perspectives, 9(4), 27-48.
  9. Clarida, R., Gali, J., & Gertler, M. (1998). The science of monetary policy: A new Keynesian perspective. Journal of Economic Perspectives, 12(4), 53-78.