Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1926304
The monetary policy during shocks: an analysis of large Asian economies’ response to COVID-19
Yechi Ma
Zhiguo Chen
Muhammad Tariq Mahmood
Sadaf Shahab
Sažetak
The economies all over the world that have been adversely
affected by the COVID-19 pandemic have recently started to
devise different strategies to mitigate its consequences. Therefore,
in order to dwell deeper into the measures taken by the policy
makers around the world, this paper specifically analyzes how the
monetary policies have been devised, in response to COVID-19.
For this purpose, this paper has taken into consideration a panel
of 8 Asian economies that have been affected the most acutely
by the virus, have faced multiple lockdowns, and have also experienced other economic restraints, due to this very phenomenon.
In order to compare the possible monetary policy options, and
their outcomes during the COVID-19 pandemic, this paper refers
to the global recession shock, as a valid point of reference. In
addition to this, in order to gain access to the empirical evidence,
the ARDL methodology has been applied on the quarterly data
from 2005Q3 to 2020Q3. The results of the study have indicated
that various plans have been taken into consideration, so as to
lessen the consequences of these shocks that have trickled down
into the respective economies of these countries. That is to put
forth that, in the incidence of global recession, the monetary
authorities have resorted to a less prudent stance. Whereas, more
flexibility, through a persistent decrease in the policy rate has
been observed since the pandemic first hit the world. In this
regard, our results imply that a successful, efficient and effective
response to the economic consequences of COVID-19, would
ideally entail a set of remedial policies and structural reforms.
Ključne riječi
Pandemic; monetary policy; shocks; ARDL; interest rates; industrial production
Hrčak ID:
302241
URI
Datum izdavanja:
31.3.2023.
Posjeta: 194 *