MONETARY POLICY EFFECTS ON INFLATION BASED ON CENTRAL BANK BALANCE SHEET PERSPECTIVE: EVIDENCE FROM PANEL DATA STUDY
This study investigates the effects of monetary policy based on central banks’ balance sheet perspective and relative macroeconomic factors on inflation. Regression models apply to panel data covering 73 countries from 2015 to 2018. The feasible generalized least square (FGLS) model shows better...
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| Main Author: | |
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/57752 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | This study investigates the effects of monetary policy based on central banks’ balance sheet
perspective and relative macroeconomic factors on inflation. Regression models apply to panel
data covering 73 countries from 2015 to 2018. The feasible generalized least square (FGLS)
model shows better and more plausible estimation than the PLS model, the FE model, and the
RE model. Furthermore, the key variable of the central bank’s balance sheet through the proxy
of total assets to GDP ratio which reflects the quantitative easing (QE) is effectively affected
inflation. This evidence implies that the QE policy plays an important role in boosting
economic growth. In addition, macroeconomic factors are significant to influence inflation. |
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