Title: Assessing the effectiveness of monetary and macro-prudential policies in GCC economies

Authors: Hisham H. Abdelbaki

Addresses: Department of Economics and Finance, Business Administration College, Bahrain University, P.O. Box 32038, Kingdom of Bahrain; Mansoura University, Mansoura, Dakahlia Governorate 35516, Egypt

Abstract: This paper aims to evaluate the effectiveness of the monetary and macro-prudential policies in GCC economies during the period 2000-2013. The main results are that the macro-prudential policies are more powerful compared to monetary policy where the macro-prudential policy shocks explain 14.2% and 10.3% of credit and output fluctuations respectively, while monetary policy shocks explain only 5.5% and 6.4% of credit and output fluctuations, respectively. The main recommendations of the paper are that the GCC countries must move forward and faster in diversifying their economies and should improve the data availability which may require establishing a financial stability coordination committee.

Keywords: monetary policy; macro-prudential policy; GMM estimator; VAR model; GCC countries.

DOI: 10.1504/IJEBR.2019.103097

International Journal of Economics and Business Research, 2019 Vol.18 No.4, pp.452 - 465

Received: 28 Aug 2018
Accepted: 20 Nov 2018

Published online: 03 Oct 2019 *

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