Impact of political instability of monetary policy conduct and economic activity recovery: empirical investigation
This empirical study aims to investigate the effects of political instability on economic volatility and monetary policy conduct. The econometric methodology adopted is the Panel Auto-Regressive Distributed Lag (PARDL). The instability variable was determined using the PCA method for 9 countries from the first quarter of 2010 to the first quarter of 2023. The empirical findings show that political instability had a negative influence on economic volatility and threatened monetary policy transmission.