Authors

• Luis Carranza(luiscarranzau@gmail.com)
  San Martin de Porres University
• José Enrique Galdón Sánchez(Jose.galdon@unavarra.es)
  Public University of Navarra
• Javier Gómez Biscarri(javier.gomez@upf.edu)
  Pompeu Fabra University

Abstract
In this paper we summarize the results of a broad exploratory empirical analysis where we relate the level of financial development with the effectiveness of monetary policy. The analysis is based on a panel of countries for whom we calculate measures both of financial development and of monetary policy effectiveness. We look for statistically significant relationships between the indicators of financial development, the effectiveness coefficients and other macroeconomic characteristics by estimating dynamic panels and performing a cluster analysis. We present our results in the form of a list of stylized facts that we consider deserve further attention.

Classification JEL:G15, E44, E52

Keywords:Financial Development, Monetary Policy Effectiveness, Dynamic Panel, Empirical Measures

Number of Pages:30

Creation Date:2006-10-10

Number:null/06