Output Effects of Monetary Policy in Emerging and Developing Countries: Evidence from a Meta-Analysis

Using 45 studies conducted between 2001 and 2014, this paper employs a meta-regression analysis (MRA) to synthesize vector-autoregressive findings of output effects of a tightening in monetary policy in 32 emerging and developing countries. The outcomes indicate a publication bias. However, tightening of monetary policy has a negative real effect on output. Primary studies including commodity price variable(s) tend to report stronger negative effects. Output effects are likely to be more negative in an economy with a developed financial system and less effective in an economy with high inflation volatility.