Monetary Policy Efficiency, Financial Market Development and Financial Stability in Developing Countries

International Journal of Economics and Management Pub Date : 2022-12-27 DOI:10.47836/ijeam.16.3.01

C. Anwar, I. Suhendra, Rah Adi Fahmi Ginanjar, Eka Purwanda, Lilis NUR KHOLISHOH

引用次数: 1

Abstract

This study evaluated the impact of monetary policy efficiency (MPE) and financial market development (FMD) on financial stability using the credit gap as a proxy. New datasets were constructed for the MPE of 63 developing economies from 1990:Q1 to 2021:Q4. The panel homogeneity assumption was verified using the Chow and Roy-Zellner tests, and the findings showed that the model was not homogenous. Thus, the pooled mean group (PMG) estimator was used. The empirical results revealed that MPE and FMD significantly impacted the credit gap. The effects of MPE and FMD on financial stability were as substitutes. Since the sample was divided into two groups: high and low-middle income nations, the conclusion was robust, and the negative connection between the variables remained. In addition, a dynamic panel estimation was also applied, which found significant effects of MPE and FMD on the credit gap.

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发展中国家的货币政策效率、金融市场发展与金融稳定

本研究以信贷缺口为代理，评估货币政策效率(MPE)和金融市场发展(FMD)对金融稳定的影响。为63个发展中经济体从1990年第一季度到2021年第四季度的MPE构建了新的数据集。使用Chow和Roy-Zellner检验验证了面板均匀性假设，结果表明模型不均匀。因此，我们使用了混合平均组(PMG)估计。实证结果显示，MPE和FMD对信贷缺口有显著影响。MPE和FMD对金融稳定的影响是相互替代的。由于样本被分为两组:高收入国家和中低收入国家，因此结论是稳健的，变量之间的负相关关系仍然存在。此外，采用动态面板估计，发现MPE和FMD对信贷缺口有显著影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Economics and Management Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.80

自引率

0.00%

发文量

期刊介绍： The journal focuses on economics and management issues. The main subjects for economics cover national macroeconomic issues, international economic issues, interactions of national and regional economies, microeconomics and macroeconomics policies. The journal also considers thought-leading substantive research in the finance discipline. The main subjects for management include management decisions, Small Medium Enterprises (SME) practices, corporate social policies, digital marketing strategies and strategic management. The journal emphasises empirical studies with practical applications; examinations of theoretical and methodological developments. The journal is committed to publishing the high quality articles from economics and management perspectives. It is a triannual journal published in April, August and December and all articles submitted are in English. IJEM follows a double-blind peer-review process, whereby authors do not know reviewers and vice versa. Peer review is fundamental to the scientific publication process and the dissemination of sound science.