Capital flight and political risk

Robert Lensink, Niels Hermes, Victor Murinde

OnderzoeksoutputAcademic

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Samenvatting

This paper investigates asymmetric effects of monetary policy over the business cycle. A two-state Markov Switching Model is employed to model both recessions and expansions. For the United States and Germany, strong evidence is found that monetary policy is more effective in a recession than during a boom. Also some evidence is found for asymmetry in the United Kingdom and Belgium. In the Netherlands, monetary policy is not very effective in either regime.
Originele taal-2English
Uitgevers.n.
Aantal pagina's42
StatusPublished - 1998

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