Financial inclusion and monetary policy effectiveness: A sustainable development approach of developed and under-developed countries.

ABSTRACT: The study explores the causal relationship between monetary policy effectiveness and financial inclusion in developed and under-developed countries. Structural Vector Auto-regressive techniques have been inducted to explore the relationship between monetary policy effectiveness and financial inclusion. The study covers the secondary data of 10 developed and 30 underdeveloped countries throughout 2004-2018. It is concluded that monetary policy effectiveness and financial inclusion do not have a contemporaneous impact on each other. Nevertheless, the reduced-form Vector Auto-regressive witness the reverse causality between financial inclusion and monetary policy effectiveness in developed countries. Thus, effective monetary policy enhances financial inclusion in a country, and a higher degre

SUBMITTER: Arshad MU 

PROVIDER: S-EPMC8694445 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature