قنوات تأثير السياسة النقدية : حالة الكويت

Abstract EN

This paper identifies the channels by which the monetary policy impacts the non-oil sector and the price indexes in Kuwait.

For this purpose, a VECM model with monthly data covering the period from 1992 to 2006 is used to assess the issue.

The results demonstrate that the interest rate, credit value, assets price, and exchange rate channels, studied in this paper are significantly important in indicating the negative impact of the monetary policy as represented by the discount rate.

However, the effect of these channels impacts the price level only, a result similar to that obtained by studies on other developing countries.

These results reflect the oppenness of the Kuwaiti economy and the underdevelopment of the institutional and legal structure in the domestic financial sector.