Proceedings of the 1st Aceh Global Conference (AGC 2018)

The Role of Credit, Money, and Exchange Rate Channels on Monetary Transmission Mechanism in Five East Africa Community (EAC) Countries

Authors
Cuthberth Mlosa, Lukman Hakim, Siti Aisyah Tri Rahayu
Corresponding Author
Cuthberth Mlosa
Available Online January 2019.
DOI
10.2991/agc-18.2019.48How to use a DOI?
Keywords
Monetary Transmission Mechanism, Credit channel, Money supply channel, Exchange rate channel, East Africa Community (EAC).
Abstract

In order to conduct successful monetary policy under monetary union it is important to understand the role of transmission channels in the monetary transmission mechanism. The performance of these channels is influenced by the economic structure prevailing in specific country, therefore differences in transmission mechanisms can generate different behavior in output to the real economy. This paper aim to examine the role of three transmission channels (credit, money supply and exchange rate) on monetary transmission mechanism in EAC countries, this is relevant to the region as these countries signed the protocol to form monetary union. The paper employ panel data approach with the cross section and time series data of five countries and twenty two year’s respectively. The findings reveal that money supply channel has positive and significant effect to the real economy hence it play important role in transmission of monetary policy in EAC countries. Remain channels (credit and exchange rate are not significant in transmission mechanism thus may not be important in transmission monetary policy to EAC countries.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 1st Aceh Global Conference (AGC 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
January 2019
ISBN
978-94-6252-644-0
ISSN
2352-5398
DOI
10.2991/agc-18.2019.48How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Cuthberth Mlosa
AU  - Lukman Hakim
AU  - Siti Aisyah Tri Rahayu
PY  - 2019/01
DA  - 2019/01
TI  - The Role of Credit, Money, and Exchange Rate Channels on Monetary Transmission Mechanism in Five East Africa Community (EAC) Countries
BT  - Proceedings of the 1st Aceh Global Conference (AGC 2018)
PB  - Atlantis Press
SP  - 310
EP  - 315
SN  - 2352-5398
UR  - https://doi.org/10.2991/agc-18.2019.48
DO  - 10.2991/agc-18.2019.48
ID  - Mlosa2019/01
ER  -