Analysis of the Impact of Monetary Policy on Economic Growth in Developing Countries
DOI:
https://doi.org/10.35335/mea.v1i1.85Keywords:
Monetary Policy, Economic Growth, Developing Countries, Interest Rate, InflationAbstract
This study aims to analyze the impact of monetary policy on economic growth in five different developing countries. Relevant economic data, including interest rates, inflation, currency exchange rates, statutory reserves, and open market operations, were collected from the central banks and leading economic institutions of each country. The analysis method uses linear regression models to identify the relationship between monetary policy variables as independent variables and economic growth as the dependent variable. The results show that monetary policy plays an important role in influencing economic growth in five developing countries, but its impact varies across countries. Interest rates, inflation, currency exchange rates, required reserves, and open market operations affect economic growth in different ways in each country. The findings highlight the importance of a policy approach tailored to each country's unique economic characteristics and challenges to achieve sustainable economic growth. This research provides valuable guidance for policymakers in designing more effective and targeted monetary policy strategies to achieve economic development goals in developing countries.
References
Aghion, P., & Howitt, P. (2009). The Economics of Growth. MIT Press.
Aizenman, J., & Noy, I. (2018). Reserve Requirements for Price and Financial Stability: When Are They Effective? Journal of Banking & Finance, 87, 411-426.
Bernanke, B. S., Laubach, T., Mishkin, F. S., & Posen, A. S. (1999). Inflation Targeting: Lessons from the International Experience. Princeton University Press.
Blinder, A. S., & Reis, R. (2005). Understanding the Greenspan Standard. In J. Y. Campbell & J. H. Cochrane (Eds.), NBER Macroeconomics Annual 2004 (Vol. 19, pp. 11-72). MIT Press.
Calvo, G. A., & Reinhart, C. M. (2002). Fear of Floating. The Quarterly Journal of Economics, 117(2), 379-408.
Eichengreen, B., & Gupta, P. (2016). Tapering Talk: The Impact of Expectations of Reduced Federal Reserve Security Purchases on Emerging Markets. Journal of International Economics, 96, 133-148.
Gali, J. (2015). Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework and Its Applications (2nd ed.). Princeton University Press.
Ghosh, A. R., Ostry, J. D., & Espinoza, R. (2018). When Should Monetary Policy Lean Against the Wind? International Monetary Fund.
Mishkin, F. S. (2016). The Economics of Money, Banking, and Financial Markets (11th ed.). Pearson Education.
Mankiw, N. G. (2016). Macroeconomics (9th ed.). Worth Publishers.
Mishra, P., & Montiel, P. J. (2017). How Effective is Monetary Transmission in Developing Countries? A Survey of the Empirical Evidence. Journal of Economic Literature, 55(2), 566-633.
Obstfeld, M., Shambaugh, J. C., & Taylor, A. M. (2005). The Trilemma in History: Trade-offs among Exchange Rates, Monetary Policies, and Capital Mobility. The Review of Economics and Statistics, 87(3), 423-438.
Rajan, R. G. (2017). The Third Pillar: How Markets and the State Leave the Community Behind. Penguin Press.
Ramey, V. A., & Zubairy, S. (2018). Government Spending Multipliers in Good Times and in Bad: Evidence from US Historical Data. Journal of Political Economy, 126(2), 850-901.
Rogoff, K. (2019). The Curse of Cash. Princeton University Press.
Romer, D. (2018). Advanced Macroeconomics (5th ed.). McGraw-Hill Education.
Schularick, M., & Taylor, A. M. (2012). Credit Booms Gone Bust: Monetary Policy, Leverage Cycles, and Financial Crises, 1870-2008. American Economic Review, 102(2), 1029-1061.
Svensson, L. E. (2015). Forward Guidance. Annual Review of Economics, 7, 205-236.
Taylor, J. B. (1993). Discretion Versus Policy Rules in Practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195-214.
Woodford, M. (2003). Interest and Prices: Foundations of a Theory of Monetary Policy. Princeton University Press.
Jurnal Manajemen, Ekonomi dan Akuntansi is licensed under a 