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GENERAL & APPLIED ECONOMICS

Determination of the effects and optimal thresholds of monetary policy instruments: A study of Central Bank Lending system in Kingdom of Eswatini

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Article: 2160582 | Received 25 Feb 2021, Accepted 16 Dec 2022, Published online: 31 Dec 2022

Figures & data

Figure 1. Trends of bank credit and discount rate.

Source: Generated by Author in EViews 9 using data from the Central Bank of Eswatini (2000–2017).
Figure 1. Trends of bank credit and discount rate.

Figure 2. Trends of Bank Credit and Cash Reserve Requirement.

Source: Generated by Author in EViews 9 using data from the Central Bank of Eswatini (2000–2017).
Figure 2. Trends of Bank Credit and Cash Reserve Requirement.

Figure 3. Trends Bank Credit and Liquidity Requirement.

Source: Generated by Author in EViews 9 using data from the Central Bank of Eswatini (2000–2017).
Figure 3. Trends Bank Credit and Liquidity Requirement.

Table 1. Definition of variables and sources of data

Table 2. Descriptive Statistics

Table 3. Unit root test

Table 4. Unrestricted Cointegration Rank Test (Trace)

Table 5. Normalized long—run VECM estimates and the Error Correction Terms

Figure 4. Cumulative sum of recursive residuals (CUSUM).

Source: Authors’ computation.
Figure 4. Cumulative sum of recursive residuals (CUSUM).

Table 6. Residual tests result

Table 7. Threshold Results Dependent variable: LBCRP