Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280351 
Year of Publication: 
2023
Series/Report no.: 
IWH Discussion Papers No. 26/2020
Version Description: 
This version: December 11, 2023
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
This study investigates whether and how financial technologies (FinTech) influence the effectiveness of monetary policy transmission. We use an interacted panel vector autoregression model to explore how the effects of monetary policy shocks change with regional-level FinTech adoption. Results indicate that FinTech adoption generally mitigates the transmission of monetary policy to real GDP, consumer prices, bank loans, and housing prices, with the most significant impact observed in the weakened transmission to bank loan growth. The relaxed financial con straints, regulatory arbitrage, and intensified competition are the possible me chanisms underlying the mitigated transmission.
Subjects: 
financial technology
interacted panel VAR
monetary policy
JEL: 
C32
E52
G21
G23
Document Type: 
Working Paper

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