1. Publications
  2. European Economic Review, January 2024
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Financial Technologies and the Effectiveness of Monetary Policy Transmission

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 constraints, regulatory arbitrage, and intensified competition are the possible mechanisms underlying the mitigated transmission.

01. January 2024

Authors Iftekhar Hasan Boreum Kwak Xiang Li

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Keywords

financial technology monetary policies vector autoregression model (VAR)

JEL Classification

C32 E52 G21 G23

Whom to contact

For Researchers

Professor Xiang Li, PhD
Professor Xiang Li, PhD
Economist

If you have any further questions please contact me.

+49 345 7753-805 Request per E-Mail

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Dr Wolfgang Sender
Dr Wolfgang Sender
Head of Public Relations

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+49 345 7753-720 Request per E-Mail
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