Financial Stability Transparency and Interest Rates
| Author: | Bc. Petr Pařízek |
|---|---|
| Year: | 2014 - summer |
| Leaders: | prof. Roman Horváth Ph.D. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 54 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/137410/ |
| Abstract: | This paper examines the relationship between nancial stability transparency and nominal interest rates on a panel data with more than 50 countries in years 2000 to 2010, controlling for macroeconomic conditions. We investi- gate the same relationship using monetary policy transparency, we compare the results and based on the existing literature we check for non-linear ef- fects of transparency. Moreover, we examine how this relationship changes in nancially good and bad times in terms of nancial stress. We nd nega- tive relationship between both nancial stability and monetary policy trans- parency and short-term interest rates. Especially in the case of monetary policy transparency our results suggest non-linear relationship and the exis- tence of an intermediate optimal level of transparency. For nancially good and bad times our ndings are miscellaneous, some in accordance and some in contradiction with the literature. Generally, our results suggest that the e ect of nancial stability transparency on short-term interest rates is weaker than the e ect of monetary policy transparency. For the long-term interest rates, we nd no evidence of the e ect of nancial stability nor monetary policy transparency. Examining the data in nancially good and bad times, our results remain insigni cant |
