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Monetary policy transmission in Pacific Island countries: a study of Tonga

Jayaraman, Tiruvalangadu K. and Choong, C.K. (2011) Monetary policy transmission in Pacific Island countries: a study of Tonga. The Journal of Pacific Studies, 31 (1). pp. 93-116. ISSN 1011-3029

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    Abstract

    Tonga’s monetary authority, National Reserve Bank of Tonga (NRBT) is entrusted with the responsibility of managing Tonga’s monetary system and exchange rate stability. This paper undertakes an empirical study of monetary policies pursued by NRBT with specific focus on the transmission mechanism of monetary policy in Tonga. As the annual data time series cover only a short-period (1981-2008), we resort to bounds testing approach. The study findings show that monetary aggregate in Tonga is more important than short term interest rate as a channel in transmitting impulses from the monetary sector to the real sector.

    Item Type: Journal Article
    Subjects: H Social Sciences > HG Finance
    Divisions: Faculty of Business and Economics (FBE) > School of Economics
    Depositing User: Ms Shalni Sanjana
    Date Deposited: 13 Jun 2011 20:36
    Last Modified: 10 Jul 2012 20:31
    URI: http://repository.usp.ac.fj/id/eprint/4686
    UNSPECIFIED

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