2023 (20), №2

Evaluating the Impact of Monetary Policy on Regional Investment Dynamics: A Classification of Evaluation Models



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Solodovnikov, S. V., & Bolyachin, Yu. V. (2023). Evaluating the Impact of Monetary Policy on Regional Investment Dynamics: A Classification of Evaluation Models. AlterEconomics, 20(2), 437–462. https://doi.org/10.31063/AlterEconomics/2023.20-2.8


The evaluation of the impact of monetary policy on investment is an important area of economic research. This paper reviews the literature on the subject and identifies the evolution of research methods used to assess the impact of monetary policy on investment and other macro indicators. The early studies could only determine the presence or absence of territorial heterogeneity, but did not identify the factors causing this heterogeneity. As the research expanded, better models were developed, and new variables were included to improve the specification of econometric models. Currently, vector autoregression models (VAR-models) are considered the most appropriate method for assessing the monetary policy impact on regional investments. Additional variables and models that consider spatial interaction are expected to improve evaluation methods for investment dynamics. This paper provides insights for economists, researchers, and politicians to better understand the impact of monetary policy on investment and the factors that contribute to regional heterogeneity.

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Sergey V. Solodovnikov — Chief Economist, Krasnoyarsk Territorial Division of the Siberian Main Branch of the Central Bank of the Russian Federation; https://orcid.org/0000-0003-0082-9807 (70, Dubrovinsky St., Krasnoyarsk krai, Krasnoyarsk, 660049, Russian Federation; e-mail: solod_2005@mail.ru).

Yury V. Bolyachin — Chief Economist, Krasnoyarsk Territorial Division of the Siberian Main Branch of the Central Bank of the Russian Federation; https://orcid.org/0000-0002-6665-3368 (70, Dubrovinsky St., Krasnoyarsk krai, Krasnoyarsk, 660049, Russian Federation; e-mail: bolyachinyury@gmail.com).

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