alexa International Monetary Transmission, a Factor-Augmented Vector Autoregressive (FAVAR)Approach: The Cases of Mexico and Brazil
ISSN: 2151-6219

Business and Economics Journal
Open Access

OMICS International organises 3000+ Global Conferenceseries Events every year across USA, Europe & Asia with support from 1000 more scientific Societies and Publishes 700+ Open Access Journals which contains over 50000 eminent personalities, reputed scientists as editorial board members.

Open Access Journals gaining more Readers and Citations

700 Journals and 15,000,000 Readers Each Journal is getting 25,000+ Readers

This Readership is 10 times more when compared to other Subscription Journals (Source: Google Analytics)

Research Article

International Monetary Transmission, a Factor-Augmented Vector Autoregressive (FAVAR)Approach: The Cases of Mexico and Brazil

MC Zuniga*#

Department of Business and Economics, The Catholic University of America, Washington DC, USA.

*Corresponding Author:
Martha Cruz Zuniga
Department of Business and Economics
The Catholic University of America
Washington DC, USA
E-mail: [email protected]

Accepted date: January 31, 2011; Published date: April 30, 2011

 

Abstract

This paper studies whether and how U.S. monetary shocks are transmitted to emerging economies utilizing as samples Mexico and Brazil. A Factor-Augmented Vector Autoregressive (FAVAR) methodology is employed to take advantage of the wide array of variables that can be included in this model to provide a more accurate picture of the transmission process. The results suggest that differences exist in the transmission of foreign monetary shocks. This implies that no generalizations can be made even for countries of equal economic size and in the same geographic region. When international transmission does exist, as it is in the case of Mexico, it induces large responses in several macroeconomic variables. Interest rate is the main channel of transmission, with some impact on the trade channel. Although little transmission exists in the case of Brazil, it appears that this country slightly benefits from U.S. contractional monetary shocks. In the Brazilian case, the channel of transmission appears to be interest rates.

Keywords

Share This Page

Additional Info

Loading
Loading Please wait..
 
Peer Reviewed Journals
 
Make the best use of Scientific Research and information from our 700 + peer reviewed, Open Access Journals
International Conferences 2017-18
 
Meet Inspiring Speakers and Experts at our 3000+ Global Annual Meetings

Contact Us

Agri, Food, Aqua and Veterinary Science Journals

Dr. Krish

[email protected]

1-702-714-7001 Extn: 9040

Clinical and Biochemistry Journals

Datta A

[email protected]

1-702-714-7001Extn: 9037

Business & Management Journals

Ronald

[email protected]

1-702-714-7001Extn: 9042

Chemical Engineering and Chemistry Journals

Gabriel Shaw

[email protected]

1-702-714-7001 Extn: 9040

Earth & Environmental Sciences

Katie Wilson

[email protected]

1-702-714-7001Extn: 9042

Engineering Journals

James Franklin

[email protected]

1-702-714-7001Extn: 9042

General Science and Health care Journals

Andrea Jason

[email protected]

1-702-714-7001Extn: 9043

Genetics and Molecular Biology Journals

Anna Melissa

[email protected]

1-702-714-7001 Extn: 9006

Immunology & Microbiology Journals

David Gorantl

[email protected]

1-702-714-7001Extn: 9014

Informatics Journals

Stephanie Skinner

[email protected]

1-702-714-7001Extn: 9039

Material Sciences Journals

Rachle Green

[email protected]

1-702-714-7001Extn: 9039

Mathematics and Physics Journals

Jim Willison

[email protected]

1-702-714-7001 Extn: 9042

Medical Journals

Nimmi Anna

[email protected]

1-702-714-7001 Extn: 9038

Neuroscience & Psychology Journals

Nathan T

[email protected]

1-702-714-7001Extn: 9041

Pharmaceutical Sciences Journals

John Behannon

[email protected]

1-702-714-7001Extn: 9007

Social & Political Science Journals

Steve Harry

[email protected]

1-702-714-7001 Extn: 9042

 
© 2008-2017 OMICS International - Open Access Publisher. Best viewed in Mozilla Firefox | Google Chrome | Above IE 7.0 version
adwords