TY - BOOK ID - 65575352 TI - Macrofinancial Linkages and Growth at Risk in the Dominican Republic AU - Bespalova, Olga. AU - Rousset, Marina. PY - 2019 SN - 1513520105 1513519204 1513520083 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Finance: General KW - Macroeconomics KW - Money and Monetary Policy KW - Financial Markets and the Macroeconomy KW - Economic History: Macroeconomics KW - Growth and Fluctuations: Latin America KW - Caribbean KW - Model Construction and Estimation KW - Forecasting and Other Model Applications KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Portfolio Choice KW - Investment Decisions KW - Monetary Growth Models KW - Monetary economics KW - Finance KW - Credit KW - Liquidity KW - Macrofinancial linkages KW - Growth-at-risk assessment KW - Money KW - Asset and liability management KW - Financial sector policy and analysis KW - Economics KW - Financial services industry KW - Financial risk management KW - Dominican Republic UR - https://www.unicat.be/uniCat?func=search&query=sysid:65575352 AB - This paper uses the Growth-at-Risk (GaR) methodology to examine how macrofinancial conditions affect the growth outlook and its probability distribution. Using this approach, we evaluate risks to GDP growth in the Dominican Republic using quarterly data for 1996-2018. We group macrofinancial conditions in five principal determinants, based on 32 indicators. The Dominican Republic’s growth distribution appears most vulnerable to negative shocks to domestic financial conditions, domestic leverage, domestic demand, and external demand, with additional repercussions from the external cost of borrowing in the longer run. Our findings show that domestic monetary policy plays a particularly important role in reducing growth vulnerabilities when the economy is weak. ER -