Financial development and the transmission of monetary shocks

Robert Lensink; Bert Scholtens

Financial development and the transmission of monetary shocks

Centre for Responsible Banking and Finance

Research output: Working paper

Abstract

We investigate whether the financial system dampens or exacerbates monetary shocks of inflation uncertainty to the economy. Our GMM-estimates for 88 countries over a period of 25 years show that inflation uncertainty has a positive and significant impact on the volatility of economic growth. More importantly, we find that financial development dampens the negative effects of inflation uncertainty on the volatility of economic growth. This confirms the importance of a well-developed financial sector.

Original language	English
Publisher	s.n.
Publication status	Published - 2004

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Cite this

@techreport{8935ad012b954b3d9e2c35b40361a365,

title = "Financial development and the transmission of monetary shocks",

abstract = "We investigate whether the financial system dampens or exacerbates monetary shocks of inflation uncertainty to the economy. Our GMM-estimates for 88 countries over a period of 25 years show that inflation uncertainty has a positive and significant impact on the volatility of economic growth. More importantly, we find that financial development dampens the negative effects of inflation uncertainty on the volatility of economic growth. This confirms the importance of a well-developed financial sector.",

author = "Robert Lensink and Bert Scholtens",

note = "Relation: http://som.rug.nl/ date\_submitted:2004 Rights: Graduate School/Research Institute, Systems, Organisations and Management (SOM)",

year = "2004",

language = "English",

publisher = "s.n.",

type = "WorkingPaper",

institution = "s.n.",

}

TY - UNPB

T1 - Financial development and the transmission of monetary shocks

AU - Lensink, Robert

AU - Scholtens, Bert

N1 - Relation: http://som.rug.nl/ date_submitted:2004 Rights: Graduate School/Research Institute, Systems, Organisations and Management (SOM)

PY - 2004

Y1 - 2004

N2 - We investigate whether the financial system dampens or exacerbates monetary shocks of inflation uncertainty to the economy. Our GMM-estimates for 88 countries over a period of 25 years show that inflation uncertainty has a positive and significant impact on the volatility of economic growth. More importantly, we find that financial development dampens the negative effects of inflation uncertainty on the volatility of economic growth. This confirms the importance of a well-developed financial sector.

AB - We investigate whether the financial system dampens or exacerbates monetary shocks of inflation uncertainty to the economy. Our GMM-estimates for 88 countries over a period of 25 years show that inflation uncertainty has a positive and significant impact on the volatility of economic growth. More importantly, we find that financial development dampens the negative effects of inflation uncertainty on the volatility of economic growth. This confirms the importance of a well-developed financial sector.

M3 - Working paper

BT - Financial development and the transmission of monetary shocks

PB - s.n.

ER -

Financial development and the transmission of monetary shocks

Abstract

UN SDGs

Fingerprint

Cite this