A macroeconomic evaluation of the Spanish monetary policy transmission mechanism

• Autores: Ricardo Mestre
• Localización: Documentos de trabajo - Banco de España, ISSN 0213-2710, Nº 4, 1995, págs. 1-42
• Idioma: inglés
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• Resumen

  • The monetary policy transmission mechanism Is analyzed in this paper with the help of a relatively standard macroeconometric model of the Spanish economy. A temporary increase in policy-set interest rates under different exchange rate regimes is simulated, and a careful decomposition of the channels of transmission of the shock is performed. The exercise highlights the importance of both business investment and the exchange rate in the transmission process. The influence of the business cycle is also taken into consideration.