An IMF paper published in October finds that a weak institutional framework impairs monetary policy channels to the economy in low-income countries.

The authors, Prachi Mishra, Peter Mishra and Antonio Spilimbergo analyse a sample of 109 low-income countries in an attempt to identify aspects of the monetary policy channels that may operate differently in low-income countries relative to advanced and emerging economies. They note that the link between a central bank's policy instruments and the