Open AccessThe Effectiveness of Monetary Policy Channels on Impacting Economic Growth in Yemen
Author(s) -
د. عبد اللطيف المقدم,
Mehmet Hilmi Özkaya,
معين الهويش
Publication year - 2022
Publication title -
mağallaẗ al-dirāsāt al-iğtimāʿiyyaẗ
Language(s) - English
Resource type - Journals
eISSN - 2312-5268
pISSN - 2312-525X
DOI - 10.20428/jss.27.4.4
Subject(s) - monetary policy , channel (broadcasting) , credit channel , exchange rate , economics , interest rate channel , monetary economics , interest rate , monetary base , transmission channel , inflation targeting , transmission (telecommunications) , telecommunications , computer science
This study aimed to assess the effectiveness of monetary policy channels in transmitting the impact of monetary policy on economic growth in Yemen using a VAR model and annual data over the period 1990 -2016. The study included the variable of the economic growth rate, in addition to four variables that represent the monetary transmission channels, namely: the channel of monetary (M1), the channel of interest rate (IR), the channel of the exchange rate (DEXR), and the channel of bank lending (LOANS). The empirical results showed the importance of both the channel of monetary and exchange rate in impacting economic growth. It also showed that the channel of interest rate was less important, while the channel of bank lending was not important.