Trilemma, dilemma or 2.5-lemma in the transmission of monetary policy : evidence from a Markov-switching panel data model

• Main Authors: Alba, Joseph Dennis, Wang, Peiming
• Other Authors: School of Social Sciences
• Format: Article
• Language: English
• Published: 2021
• Subjects: Social sciences::Economic development; Panel Markov Switching; Exchange Rate Regimes; Capital Control; Trilemma
• Online Access: https://hdl.handle.net/10356/148295; https://doi.org/10.21979/N9/HN5JKE
• Institution: Nanyang Technological University

We examine the spill-over effects of interest rate transmission of United States monetary policy to peripheral countries with various exchange rate regimes and capital control management policies. To do so, we propose a two-state continuous-time hidden Markov-switching panel data model using an e...