Monetary policy transmission: Academic and empirical research in the world

Abstract

Monetary policy plays an important role in economic management in most countries. To make the monetary policy really effective, especially in inflation control and macroeconomic stabilization, requires effective monetary policy transmission. Empirical researches show that transmission mechanism and channels differ over countries due to their characteristics, implementation mechanism and instruments of the monetary policy. By reviewing materials, analyzing and synthesizing them, this research tries to find empirical evidence relevant to monetary policy transmission.