Cover -- Contents -- Abstract -- I. Introduction -- II. An Overview of The Channels of Monetary Policy Transmission -- III. A Brief Overview of Economic Developments -- IV. Empirical Methodology -- A. The Benchmark SVAR Specification -- B. Data Overview -- V. Estimation Results -- VI. Analyzing the Robustness of the Results -- VII. Conclusion -- References -- Tables -- 1. Unit Root Tests Results for GCC Countries -- 2. Specification tests of the GCC SVAR -- 3. Estimated Contemporaneous SVAR Coefficients, 1900-2010 -- 4. GCC: Variance Decomposition (Percent of Total Variance) -- Figures -- 1. GCC: Real Non-hydrocarbon GDP Growth and Inflation, 1991-2010 -- 2. GCC and U.S. Nominal Short-Term Interest Rates, 2004-2010 -- Appendix Figures -- 1. GCC: Impulse Responses with Bootstrapped Confidence Intervals -- 2. Bahrain: Impulse Responses with Bootstrapped Confidence Intervals -- 3. Kuwait: Impulse Responses with Bootstrapped Confidence Intervals -- 4. Oman: Impulse Responses with Bootstrapped Confidence Intervals -- 5. Qatar: Impulse Responses with Bootstrapped Confidence Intervals -- 6. Saudi Arabia: Impulse Responses with Bootstrapped Confidence Intervals -- 7. U.A.E.: Impulse Responses with Bootstrapped Confidence Intervals -- 8. GCC: Variance Decomposition with Bootstrapped Confidence Intervals -- 9. Bahrain: Variance Decomposition with Bootstrapped Confidence Intervals -- 10. Kuwait: Variance Decomposition with Bootstrapped Confidence Intervals -- 11. Oman: Variance Decomposition with Bootstrapped Confidence Intervals -- 12. Qatar: Variance Decomposition with Bootstrapped Confidence Intervals -- 13. Saudi Arabia: Variance Decomposition with Bootstrapped Confidence Intervals -- 14. U.A.E.: Variance Decomposition with Bootstrapped Confidence Intervals.

This paper empirically investigates the effectiveness of monetary policy transmission in the Gulf Cooperation Council (GCC) countries using a structural vector autoregressive model. The results indicate that the interest rate and bank lending channels are relatively effective in influencing non-hydrocarbon output and consumer prices, while the exchange rate channel does not appear to play an important role as a monetary transmission mechanism because of the pegged exchange rate regimes. The empirical analysis suggests that policy measures and structural reforms - strengthening financial intermediation and facilitating the development of liquid domestic capital markets - would advance the effectiveness of monetary transmission mechanisms in the GCC countries.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.