Thesis Open Access
ZERAYEHU SIME
<?xml version='1.0' encoding='utf-8'?> <resource xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns="http://datacite.org/schema/kernel-4" xsi:schemaLocation="http://datacite.org/schema/kernel-4 http://schema.datacite.org/meta/kernel-4.1/metadata.xsd"> <identifier identifierType="DOI">10.20372/nadre:2936</identifier> <creators> <creator> <creatorName>ZERAYEHU SIME</creatorName> </creator> </creators> <titles> <title>HOW CENTRAL BANK RESPONDS TO MACROECONOMIC SHOCKS? SPECIFICATION, ESTIMATION AND ANALYSIS OF MONETARY POLICY REACTION FUNCTION: THE CASE OF ETHIOPIA (1991-2005)</title> </titles> <publisher>Zenodo</publisher> <publicationYear>2006</publicationYear> <dates> <date dateType="Issued">2006-07-01</date> </dates> <resourceType resourceTypeGeneral="Text">Thesis</resourceType> <alternateIdentifiers> <alternateIdentifier alternateIdentifierType="url">https://nadre.ethernet.edu.et/record/2936</alternateIdentifier> </alternateIdentifiers> <relatedIdentifiers> <relatedIdentifier relatedIdentifierType="DOI" relationType="IsVersionOf">10.20372/nadre:2935</relatedIdentifier> <relatedIdentifier relatedIdentifierType="URL" relationType="IsPartOf">https://nadre.ethernet.edu.et/communities/aau</relatedIdentifier> <relatedIdentifier relatedIdentifierType="URL" relationType="IsPartOf">https://nadre.ethernet.edu.et/communities/zenodo</relatedIdentifier> </relatedIdentifiers> <rightsList> <rights rightsURI="http://www.opendefinition.org/licenses/cc-by">Creative Commons Attribution</rights> <rights rightsURI="info:eu-repo/semantics/openAccess">Open Access</rights> </rightsList> <descriptions> <description descriptionType="Abstract"><p>This paper presents a model of monetary policy in Ethiopia after financial liberalization policy adopted. It is<br> designed to identify both the goals and pattern of policy with the two major aims: firstly to know the way<br> how National Bank of Ethiopia systematically responds to macroeconomic shocks and secondly to evaluate<br> the performance monetary policy against its initial objective including assessment of gap analyses in<br> monetary policy frame work.<br> Hence, the model demonstrates that the National Bank of Ethiopia chooses the domestic credit as the most<br> appropriates indicator of monetary policy with the determinants of net foreign assets, consumer price index,<br> fiscal gap, real effective exchange rate and Gross Domestic Products to formulate the reaction function. On<br> top of this the empirical results explain that domestic credit has strong long run &amp; positive relation with net<br> foreign assets &amp; to real Gross Domestic Product. But it has short run relation with consumer price index,<br> real effective exchange rate and real Gross Domestic Product at different lag structure. The NBE followed a<br> combination of both accommodating and stabilization monetary policy. The Coefficients of equilibrating<br> error terms, ECM suggest that the speed of adjustment/ feed back effect towards the long run equilibrium<br> takes many years for full adjustment when there is a shock in the system, indicating the longer lags structure<br> and undeveloped financial sectors resulted in obstacles for the effectiveness of monetary policy</p></description> </descriptions> </resource>
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