Financial Depth and the Asymmetric Impact of Monetary Policy

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Caglayan M., KANDEMİR KOCAASLAN Ö., Mouratidis K.

OXFORD BULLETIN OF ECONOMICS AND STATISTICS, cilt.79, sa.6, ss.1195-1218, 2017 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 79 Sayı: 6
  • Basım Tarihi: 2017
  • Doi Numarası: 10.1111/obes.12160
  • Dergi Adı: OXFORD BULLETIN OF ECONOMICS AND STATISTICS
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.1195-1218
  • Hacettepe Üniversitesi Adresli: Evet

Özet

This paper investigates the importance of financial depth in evaluating the asymmetric impact of monetary policy on real output over the course of the US business cycle. We show that monetary policy has a significant impact on output growth during recessions. We also show that financial deepening plays an important role by dampening the effects of monetary policy shocks in recessions. The results are robust to the use of alternative financial depth and monetary policy shock measures as well as to two different sample periods.