The Impact of Monetary Policy on Economic Activity - Evidence from a Meta-Analysis

Tinbergen Institute Discussion Paper 10-043/3

31 Pages Posted: 25 Apr 2010

See all articles by Masagus M. Ridhwan

Masagus M. Ridhwan

VU University Amsterdam - Department of Spatial Economics

Henri L. F. de Groot

Vrije Universiteit Amsterdam; Tinbergen Institute

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics; Tinbergen Institute

Piet Rietveld

VU University Amsterdam - Department of Spatial Economics (Deceased)

Date Written: April 22, 2010

Abstract

This paper presents the findings a meta-analysis identifying the causes of variation in the impact of monetary policies on economic development. The sample of observations included in our meta-analysis is drawn from primary studies that uniformly employ Vector Autoregressive (VAR) models. Our findings reveal that capital intensity, financial deepening, the inflation rate, and economic size are important in explaining the variation in outcomes across regions and over time. Differences in the type of models used in the primary studies also significantly contribute to the explanation of the variation in study outcomes.

Keywords: Monetary policy, Economic development, Meta-analysis

JEL Classification: E52, R11, C83

Suggested Citation

Ridhwan, Masagus M. and de Groot, Henri L.F. and Nijkamp, Peter and Rietveld, Piet, The Impact of Monetary Policy on Economic Activity - Evidence from a Meta-Analysis (April 22, 2010). Tinbergen Institute Discussion Paper 10-043/3, Available at SSRN: https://ssrn.com/abstract=1594036 or http://dx.doi.org/10.2139/ssrn.1594036

Masagus M. Ridhwan (Contact Author)

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

Henri L.F. De Groot

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
Amsterdam, 1081 HV
Netherlands
0640494981 (Phone)
2135 DL (Fax)

Tinbergen Institute

Gustav Mahlerplein 17
Amsterdam, 1082 MS
Netherlands

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 4446091 (Phone)
+31 20 4445611 (Fax)

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Piet Rietveld

VU University Amsterdam - Department of Spatial Economics (Deceased)

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 4446097 (Phone)
+31 20 4446004 (Fax)

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