Three Essays on Empirical Macroeconomics
Open AccessThis dissertation is a collection of three essays in empirical macroeconomics using cross-country data. The first two chapters focus on topics related to macroeconomic policy issues, investigate the policy effect of reserve requirements on interest rate spread (chapter 1) and study the choice of sterilization policy tools (chapter 2). In the first chapter, I show that increasing reserve requirements lead to a larger interest rate spread. Changing reserve requirements has a more substantial impact on the interest rate spread if the country is less financially developed. The second chapter's results again point out the importance of the interaction between countries’ financial conditions and policy implementation. It suggests that countries with a lower level of financial openness and less matured financial institutions are more likely to sterilize using non-market-based instruments. Also, the interest rate cost does not seem to be an essential factor affecting the sterilization tool choices. In the third chapter, using the proposed digitalization proxy, our analysis shows that digitalization has contributed to reducing short-term inflation since 2012, mainly through a direct cost/mark-up channel, which influences the slope of Philips curve over the last few years.
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