摘要
In this research, the authors evaluate different channels of the monetary policy transmission mechanisms in Saudi Arabia over the last 15 years with a baseline of structural vector autoregressive （SVAR） models. Contemporaneous coefficient in the structural model indicates that while Saudi Arabia pegs its currency to US dollar, monetary policy instrument reacts positively to unexpected changes in the monetary aggregate. In addition to the traditional interest rate channel, the authors have also found the effects of credit channel. Moreover, variance decomposition results show that past shocks of credit, nominal effective exchange rate （NEER）, federal funds rate （FFR） and treasury bill （TB） are found to be important for credit growth in shorter and longer horizons. The exchange rate channel has been less significant in comparison to other channels.
