A Paradigm Shift in Understanding Monetary Policy Transmission: Revisiting the Non-Linearity Hypothesis in Emerging Economies

Jamie Nelson; Noah Brown; Quinn Martin; Nico Perez

Authors

Jamie Nelson PhD
Noah Brown Associate Professor
Quinn Martin Professor
Nico Perez Dr. Sc

Keywords:

Monetary Policy, Non-Linearity Hypothesis, Emerging Economies, Econometric Modeling, Macroeconomic Conditions, Monetary Transmission Mechanism, Policy Formulation, Financial Markets Volatility, Exchange Rates

Abstract

This article investigates the complexities of monetary policy transmission mechanisms in emerging economies, emphasizing the often-overlooked non-linearity hypothesis. Utilizing advanced econometric modeling, we examine how these mechanisms operate under varying macroeconomic conditions. Our findings reveal significant deviations from linear models, challenging conventional theoretical frameworks. The study underscores the necessity for policymakers to consider non-linear dynamics to formulate effective economic strategies.

Author Biographies

Jamie Nelson, PhD

PhD
Harvard University
Cambridge, MA 02138, USA

Noah Brown, Associate Professor

Associate Professor
University of Oxford
Oxford OX1 2JD, United Kingdom

Quinn Martin, Professor

Professor
University of Melbourne
Parkville, Victoria 3010, Australia

Nico Perez, Dr. Sc

Dr. Sc
University of Toronto
27 King's College Cir, Toronto, ON M5S, Canada

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