Monetary Policy and Developmental Structural Adjustment

Abstract

The author boasts a rich scientific output in his study area, which is the influence of monetary policy upon the real sphere. The subject of this analysis consists in the study of the mechanism of transmitting the said policy onto the corporate sector, whereas the effectiveness of that is, on occasions, shown in relation to the institutional maturity of the economy. The paper offers a different approach to the above issue, as it exposes the influence of the monetary policy upon this part of the real sphere, which comprises the aggregate structure of production, not the one (i.e. part of the real sphere) constituted by the corporate sector. The author puts forward the following argument: the above mentioned influence is, presumptively, weak (irrespective of the institutional maturity of economy), and, apart from that, it is additionally determined by other types of economic policies. Therefore, if we assume, optimistically, that the presented analysis proves the above argument, then the influence of the monetary policy upon the real structure of the economy is minute - what is more, it is likely to fluctuate, depending on the nature of links the monetary policy has with both fiscal, and industrial policies.(original abstract)