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Analyses the effect of monetary policy transmission on the inequality in OECD countries

The aim of this article is to analyze the inequality impacts of monetary policy transmission in OECD countries’ economy from 2001 to 2017. Panel regression model has been applied for the hypotheses test. Information gathering has been based on the country' s basic information, i.e the data requ...

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Main Authors: Farajnezhad, M., Ramakrishnan, S. A. L., Zadeh, M. S. K.
Format: Article
Published: Dorma Journals 2020
Subjects:
HG Finance
Online Access:http://eprints.utm.my/id/eprint/93198/
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spelling my.utm.931982021-11-19T03:15:22Z http://eprints.utm.my/id/eprint/93198/ Analyses the effect of monetary policy transmission on the inequality in OECD countries Farajnezhad, M. Ramakrishnan, S. A. L. Zadeh, M. S. K. HG Finance The aim of this article is to analyze the inequality impacts of monetary policy transmission in OECD countries’ economy from 2001 to 2017. Panel regression model has been applied for the hypotheses test. Information gathering has been based on the country' s basic information, i.e the data required for research are generally derived from the library method, using the World Bank website. The econometric method used in this research, is Generalized Torque Method. Dependent variable Gini coefficient index is considered as an indicator of income inequality and independent variables of monetary transfer mechanisms include interest rates, liquidity, exchange rates, the gold price, the legal reserves of the central bank and the banks' debt to the central bank. The results show that the interest impact of monetary transfer mechanism at the Gini coefficient as an indifference index in OECD countries is positive and insignificant (probability is 0. 18) with a coefficient of 0.004 and it shows that raising interest rates will increase the inequality in these countries. Additionally, the effect of the capital market on the inequality is also positive with a coefficient of 0.001 and a significant probability of 0.002. It shows the positive effect of bank deposits on income inequality. Dorma Journals 2020 Article PeerReviewed Farajnezhad, M. and Ramakrishnan, S. A. L. and Zadeh, M. S. K. (2020) Analyses the effect of monetary policy transmission on the inequality in OECD countries. Journal of Environmental Treatment Techniques, 8 (2). pp. 589-596. ISSN 2309-1185
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic HG Finance
spellingShingle HG Finance
Farajnezhad, M.
Ramakrishnan, S. A. L.
Zadeh, M. S. K.
Analyses the effect of monetary policy transmission on the inequality in OECD countries
description The aim of this article is to analyze the inequality impacts of monetary policy transmission in OECD countries’ economy from 2001 to 2017. Panel regression model has been applied for the hypotheses test. Information gathering has been based on the country' s basic information, i.e the data required for research are generally derived from the library method, using the World Bank website. The econometric method used in this research, is Generalized Torque Method. Dependent variable Gini coefficient index is considered as an indicator of income inequality and independent variables of monetary transfer mechanisms include interest rates, liquidity, exchange rates, the gold price, the legal reserves of the central bank and the banks' debt to the central bank. The results show that the interest impact of monetary transfer mechanism at the Gini coefficient as an indifference index in OECD countries is positive and insignificant (probability is 0. 18) with a coefficient of 0.004 and it shows that raising interest rates will increase the inequality in these countries. Additionally, the effect of the capital market on the inequality is also positive with a coefficient of 0.001 and a significant probability of 0.002. It shows the positive effect of bank deposits on income inequality.
format Article
author Farajnezhad, M.
Ramakrishnan, S. A. L.
Zadeh, M. S. K.
author_facet Farajnezhad, M.
Ramakrishnan, S. A. L.
Zadeh, M. S. K.
author_sort Farajnezhad, M.
title Analyses the effect of monetary policy transmission on the inequality in OECD countries
title_short Analyses the effect of monetary policy transmission on the inequality in OECD countries
title_full Analyses the effect of monetary policy transmission on the inequality in OECD countries
title_fullStr Analyses the effect of monetary policy transmission on the inequality in OECD countries
title_full_unstemmed Analyses the effect of monetary policy transmission on the inequality in OECD countries
title_sort analyses the effect of monetary policy transmission on the inequality in oecd countries
publisher Dorma Journals
publishDate 2020
url http://eprints.utm.my/id/eprint/93198/
_version_ 1717093434308689920
score 13.211869

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