Documentos de Trabajo
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Browsing Documentos de Trabajo by Author "Cendra-Villalobos, Luis Alonso"
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- Traspaso de la tasa de política monetaria en Costa Rica de 2000 a 2018This paper examines the pass-through of the monetary policy rate (TPM) for the period of January 2000 to February 2018. We also conduct an evaluation of external factors that can influence the effectiveness of the pass-through mechanism. The results show that, after the adoption and during the period of the pegged exchange rate within horizontal bands regime the pass-through is complete. This pass-through takes in average 7 months for deposits rates and 16 months for the loans market interest rates. There is also evidence to support the existence of nonlinearities after the adoption of the band scheme, where the market rates reacted faster to movements in the policy rate, nevertheless the evidence does not support this hypothesis during the floating. There is strong evidence of asymmetries in the speed of adjustment of the commercial banks rates. Additionally, we found that the level of, financial dollarization; of bank concentration; of Central Government debt; and the deficit of the Central Bank have all significant and negative effects on the pass-through of the monetary policy rate. Also, the degree of exchange rate flexibility has a significant and positive effect on the transmission mechanism.