Translated title: Evaluation of Monetary Policy in Ethiopia: An Empirical Study
Authors: Taye, Alemayehu Demissew ; Horváth, Roman (advisor) ; Bauer, Michal (referee)
Document type: Master’s theses
Year: 2015
Language: eng
Abstract: In this paper, a structural vector auto regression (SVAR) approach is used to empirically investigate the effects of monetary policy shocks on output (measured by real GDP) and prices (measured by consumer price index) in Ethiopia. We isolated the SVAR structural shocks by imposing restrictions on the long- run behavior of the variables in the model, which places a recursive restriction on the disturbances of the SVAR. We considered three alternative policy instruments i.e. broad money supply (M2), lending rate and the real effective exchange rate (REER). We find evidence that price-based nominal anchors (Interest rate and REER) have an effect on real output, a modest effect of the lending rate while a significant effect of REER is documented, with a slightly faster speed of adjustment. Similarly, innovation in the quantity based nominal anchor (M2) affects economic activities significantly. Powered by TCPDF (www.tcpdf.org)
Keywords: Monetary Policy Evaluation; Output Effect; Price Effect; SVAR; Monetary Policy Evaluation; Output Effect; Price Effect; SVAR

Institution: Charles University Faculties (theses) (web)
Document availability information: Available in the Charles University Digital Repository.
Original record: http://hdl.handle.net/20.500.11956/64365

Permalink: http://www.nusl.cz/ntk/nusl-333505


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Universities and colleges > Public universities > Charles University > Charles University Faculties (theses)
Academic theses (ETDs) > Master’s theses