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Exit Policy, Liquidity Normalization, and lts Implications on Central Bank Policy Transmission

Alexander Lubis et al.

Bulletin of Monetary Economics and Banking2025https://doi.org/10.59091/2460-9196.2360article
ABDC C
Weight
0.37

What the paper says

The objective of this study is to determine the implications for the effectiveness of monetary policy transmission by examining the impact of specific policy toolkits in both Advanced Economy (AE) and Emerging Market (EM) countries during crises and during normalization (exit policy) upon crisis resolution. The analysis conducted using the VECM method on a number of AE and EM countries demonstrates that the response of bank interest rates (credit) is consistent with changes in policy rates and substantially diverges from Quantitative Easing (QE) policy in both the short and long term. However, the efficacy of monetary policy transmission appears to be diminishing following multiple crisis periods, including the Global Financial Crisis (GFC) and the COVID-19 pandemic. Furthermore, the efficacy of monetary policy transmission is higher in countries that first normalize liquidity than in those that directly increase policy rates, particularly in the aftermath of the COVID-19 pandemic.

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https://doi.org/https://doi.org/10.59091/2460-9196.2360

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@article{alexander2025,
  title        = {{Exit Policy, Liquidity Normalization, and lts Implications on Central Bank Policy Transmission}},
  author       = {Alexander Lubis et al.},
  journal      = {Bulletin of Monetary Economics and Banking},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.59091/2460-9196.2360},
}

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.