Volume 10, No. 2, August 2011

 

Monetary Policy and Performance

of the Oil-Exporting Gulf Cooperation Council Countries

Ashraf Nakibullah
Department of Economics and Finance, University of Bahrain, Bahrain
Abstract

Price stability is the goal of the monetary policy of the oil-exporting Gulf Cooperation Council (GCC) countries. Estimation results for the period 1992:1 to 2009:3 indicate that the GCC countries, with the exception of Qatar and UAE during a few quarters of 2007 and 2008, heavily sterilize the impact of the changes in foreign reserves on the domestic base money and the goal of price stability in general is maintained.

Key words: GCC; sterilization and offsetting coefficients; 2SLS; 3SLS
JEL classification: E51; E52; E58

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