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The performance of monetary policy : a comparison between civil-law and common-law countries

Zakaria, Zukarnain (2007) The performance of monetary policy : a comparison between civil-law and common-law countries. Jurnal Kemanusiaan (9). pp. 7-24. ISSN 1675-1930

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Abstract

The objective of this paper is to compare the effectiveness of monetary policy between civillaw countries and common-law countries by investigating the impulse response of monetary policy actions on the level of output. This is to determine whether countries of common-law origin are less sensitive to monetary policy actions compared with civil-law countries. Theoretically, we expected that monetary policy is more effective in civil-law countries where their financial structures are more bank-based as compared to common-law countries where their financial structures are more market-based. The impulse response functions were generated through the estimation of first-differences VAR consisting of five variables. The findings show the impact of monetary policy is relatively stronger, responds more quickly and long lasting in civil-law countries compared with common-law countries.

Item Type:Article
Uncontrolled Keywords:monetary policy, financial structures, impulse response, civil-law, common-law
Subjects:K Law > K Law (General)
Divisions:Management and Human Resource Development (Formerly known)
ID Code:8137
Deposited By: Norshiela Buyamin
Deposited On:30 Mar 2009 01:30
Last Modified:02 Jan 2014 04:05

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