Overall, the findings of this paper show that the majority of the previous studies tend to support a positive impact of monetary policy on economic growth mainly in financially developed economies with fairly independent central banks. The relationship tends to be weaker in developing economies with underdeveloped financial markets and weakly integrated into global markets. The study has also revealed that the relationship between monetary policy and economic growth is largely explained by, inter alia, the size of and competition within the financial UnauthenticatedDownload Date | 6/22/19 6:43 PM
Monetary Policy and Economic Growth: A Review of International Literature133sector, the monetary and exchange rate regimes, and the degree of openness. This paper concludes that monetary policy matters for growth both in the short-run and long-run despite the prevailing ambiguous relationship. The paper recom-mends intensive financial development measures for developing countries as well as structural reforms to address to supply side deficiencies.UnauthenticatedDownload Date | 6/22/19 6:43 PM
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