Journal articles on the topic 'Monetary policy Group of Seven countries'
To see the other types of publications on this topic, follow the link: Monetary policy Group of Seven countries.
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Monetary policy Group of Seven countries.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Myšková, Kateřina, David Hampel, and Anna Dobešová. "Impulse-response analysis of monetary policy – Visegád group countries case." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 61, no. 7 (2013): 2561–67. http://dx.doi.org/10.11118/actaun201361072561.
Full textAbstract:
In this paper, we focus on comparability of monetary policies of Visegrád group countries (V4). Main objective of central banks function in V4 countries lies in maintaining price stability. For this purpose, inflation targeting regime is realized in a medium-term focus in V4, which means that there is a certain lag between monetary policy operation and its influence on an inflation target. Central bank does not have a direct impact on its ultimate goals. Therefore, any monetary policy analysis and assumption of its effectiveness comes out from an essential existence of a working transmission mechanism. Thus, changes in settings of monetary policy instruments have to be able to inflict causal changes on intermediary markets and via these markets on target markets. This situation can be modeled by the vector autoregressive (VAR) model with suitable variables. Our main task is to compare a relationship between VAR model responses to predefined impulses for all V4 pairs. We use calibration technique for this purpose. Specifically, we will utilize one-dimensional calibration model with a linear calibration function for deriving unknown parameters. Moreover, we will test a significance of estimated parameters. We distinguish between model parameters for before-crisis- and during-crisis- data, because we suppose that financial crisis affects VAR model parameters significantly. Different responses in each country can mean the inability of the common monetary policy for V4 at present.
2
Janků, Jan, and Stanislav Kappel. "The Interaction of Monetary and Fiscal Policy in the Countries of the Visegrad Group." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 62, no. 2 (2014): 373–81. http://dx.doi.org/10.11118/actaun201462020373.
Full textAbstract:
Coordination of or at least absence of conflict between monetary and fiscal policies are key to the successful implementation of economic policy. The article aims to use reaction functions to assess whether the monetary and fiscal policies in the countries of the Visegrad Group are in coordination or in conflict and which variables influence their decisions. The central bank is the representative of monetary policy, which has interest rates as its instrument, and the government as the representative of the fiscal policy which has change revenue or spending as a share of GDP as instrument. To obtain the results, multivariate regression analysis is used. The research period is based on quarterly observations from first quarter of 2000 to the fourth quarter of 2012. Stabilizing role of monetary policy and in some countries also partially stabilizing role of fiscal policy has been found. Another result was that in the case of the Czech Republic, Slovakia and Poland, monetary policy appears to play the dominant role, whereas fiscal policy plays dominant role in Hungary. In the case of Slovakia, some different results may be due to Slovakia’s participation in ERM II, which led to the monetary policy, in addition to maintaining price stability, also aiming to maintain a fixed exchange rate and the subsequent entry of Slovakia into the Eurozone and the de facto loss of autonomous monetary policy.
3
Kappel, Stanislav, and Jan Janků. "Integration of Monetary and Fiscal Policy of the Countries of the Visegrad Group." Review of Economic Perspectives 14, no. 3 (September 1, 2014): 197–213. http://dx.doi.org/10.2478/revecp-2014-0010.
Full textAbstract:
Abstract The aim of this paper is to evaluate mutual interaction of monetary and fiscal policies in the countries of the Visegrad group, i.e. in the Czech Republic, Slovakia, Poland and Hungary. The relationship of monetary and fiscal policy - their coordination, cooperation or mutual antagonism - are basic determinants of successful implementation for economic policy of the state. Fiscal and monetary policies usually have different aims, and some conflict situations may arise in practical economic and political decision- making. Each policy has to make its decision with regard to the other one. Methodical approaches of this contribution are based on the game theory, which deals with the analysis of a wide range of decision situations with more participants (players) and it is primarily focused on the conflict situations. This game-theoretical approach is responsible for creating the theoretical model which is then dealt with in the empirical analysis. We find a distinctly stabilizing role of monetary policy and relatively problematic stabilizing role of fiscal policy in the analyzed countries. The dominant role of monetary policy is statistically confirmed in the case of the Czech Republic and Hungary.
4
Petreski, Marjan. "Monetary Policy Conduct in Seven CESEE Countries on Their Road to the Euro." Comparative Economic Studies 55, no. 1 (October 4, 2012): 1–41. http://dx.doi.org/10.1057/ces.2012.34.
Full text
5
Bárcena-Martín, Elena, Natalia Martín-Fuentes, and Salvador Pérez-Moreno. "Effects of monetary policy shocks on income mobility in the Euro area countries." Panoeconomicus 66, no. 3 (2019): 307–24. http://dx.doi.org/10.2298/pan1903307b.
Full textAbstract:
This paper examines the impacts of monetary policy shocks on income mobility in the Euro area, relying on earnings heterogeneity and income composition channels through which monetary policy affects income distribution. From a relative mobility perspective, upward and downward mobility are estimated over the period 2004-2014 for the EMU countries that originated the Economic and Monetary Union (EMU 1999). By using a vector error correction model (VECM) approach, overall we find that an expansionary monetary policy seems to encourage upward mobility and discourage downward mobility. By income groups, a loose monetary policy appears to reduce downward mobility for the upper class, while no empirical evidence can be provided to support that monetary policy shocks alter upward mobility for the lower class. Monetary policy shocks are especially favourable for the middle class as an expansionary monetary policy seems to boost upward mobility. A detailed analysis of the middle class shows that an expansionary monetary policy may propel the upward mobility and hinder the downward mobility of the lower-middle class, particularly favouring this income group.
6
Bazzaoui, Lamia, and Jun Nagayasu. "Is Inflation Fiscally Determined?" Sustainability 13, no. 20 (October 13, 2021): 11306. http://dx.doi.org/10.3390/su132011306.
Full textAbstract:
This paper examines the relationship between fiscal policy and inflation for 44 countries, from 1960 to 2020. The study was conducted using a panel VAR approach while accounting for the difference in monetary policy frameworks and the levels of fiscal space across countries. Results suggest that budget deficits are less likely to cause inflation when monetary policy is based on inflation targeting. In contrast, they are inflationary in the group of countries with a poorly structured monetary policy (such as partially dollarized Latin American economies).
7
Mirdala, Rajmund. "Interest rate transmission mechanism of monetary policy in the selected EMU candidate countries." Panoeconomicus 56, no. 3 (2009): 359–77. http://dx.doi.org/10.2298/pan0903359m.
Full textAbstract:
The stable macroeconomic environment, as one of the primary objectives of the Visegrad countries in the 1990s, was partially supported by the exchange rate policy. Fixed exchange rate systems within gradually widen bands (Czech Republic, Slovak Republic) and crawling peg system (Hungary, Poland) were replaced by the managed floating in the Czech Republic (May 1997), Poland (April 2000), Slovak Republic (October 1998) and fixed exchange rate to euro in Hungary (January 2000) with broad band (October 2001). Higher macroeconomic and banking sector stability allowed countries from the Visegrad group to implement the monetary policy strategy based on the interest rate transmission mechanism. Continuous harmonization of the monetary policy framework (with the monetary policy of the ECB) and the increasing sensitivity of the economy agents to the interest rates changes allowed the central banks from the Visegrad countries to implement monetary policy strategy based on the key interest rates determination. In the paper we analyze the impact of the central banks' monetary policy in the Visegrad countries on the selected macroeconomic variables in the period 1999-2008 implementing SVAR (structural vector autoregression) approach. We expect that higher sensitivity of domestic variables to interest rates shocks can be interpreted as a convergence of monetary policies in candidate countries towards the ECB's monetary policy.
8
Selim, Mohammad, and M. Kabir Hassan. "Interest-free monetary policy and its impact on inflation and unemployment rates." ISRA International Journal of Islamic Finance 11, no. 1 (June 17, 2019): 46–61. http://dx.doi.org/10.1108/ijif-06-2018-0065.
Full textAbstract:
Purpose This paper aims to examine the effects of interest-free and interest-based monetary policy on inflation and unemployment rates for two groups of countries where in one group, interest-free monetary policy (IFMP) was pursued, while in the other group, interest-based monetary policy (IBMP) was followed. Design/methodology/approach This study involves a sample of 23 developed countries divided into two groups. The authors measure economic performance by misery index (MI), and MI is calculated as unemployment rate plus inflation rate. A group of countries, where MI is lower, performs better compared to the other group where MI is relatively higher. Findings The results reveal that in group of 12 countries where IFMP is adopted, the MI is lower and thus performs better compared to a group of countries where IBMP is pursued. Research limitations/implications The findings of this study have profound implications for the policymakers and government leaders who look for a solution to maintain both low inflation and unemployment rates. The findings in this study clearly portray that such ideal situations can only be achieved by pursuing IFMP. No wonder the countries which have been historically pursuing IFMP such as Japan, Switzerland, Sweden, the Netherlands and Denmark have been able to contain both inflation and unemployment rates compared to their counterparts among the English-speaking countries. Originality/value This is one of the most recent tests on the differences in economic performance between IFMP and IBMP. These results have significant value for policymakers and central bankers who have been struggling to maintain lower MI for decades.
9
Janků, Jan, Stanislav Kappel, and Zuzana Kučerová. "The Interaction of Monetary and Fiscal Policy in the Visegrad Group Countries." Politická ekonomie 62, no. 4 (August 1, 2014): 459–79. http://dx.doi.org/10.18267/j.polek.964.
Full text
10
Odell, John S., and Thomas D. Willett. "International Monetary Cooperation, Domestic Politics, and Policy Ideas." Journal of Public Policy 8, no. 3-4 (July 1988): 229–33. http://dx.doi.org/10.1017/s0143814x00008606.
Full textAbstract:
International monetary problems moved from the back pages to the front pages long ago, and yet, despite much attention, they continue to trouble national leaders, entrepreneurs, international officials and scholars, and to affect the average citizen. World payments imbalances and currency fluctuations have substantial domestic economic effects, give rise to protectionist pressures, put unwelcome heat on politicians, and raise fears that resulting governmental conflicts could unravel political-security relations. Thus, large and small nations meet in various fora, from bilateral sessions through the Group-of-Seven powers to the annual IMF conference, to negotiate proposed changes.
11
Włodarczyk, Przemysław. "Monetary Policy Transmission and the Labour Market in the Non‑eurozone Visegrad Group Countries in 2000–2014. Evidence from a SVAR Analysis." Comparative Economic Research. Central and Eastern Europe 20, no. 4 (December 30, 2017): 23–43. http://dx.doi.org/10.1515/cer-2017-0026.
Full textAbstract:
This paper is aimed at filling the gap in existing economic research by delivering new evidence on the money‑labour nexus in the emerging markets of the non‑eurozone Visegrad group countries (i.e. Czech Republic, Hungary and Poland). Analyses are based on the Strucutral VAR (SVAR) models of the monetary transmission mechanism, estimated using monthly data from the 2000:1–2014:2 period. In order to obtain impulse responses, the short‑run restrictions set, based on the monetary transmission theory, is imposed. Two different identification schemes are considered.The results confirm that there exists a nexus between monetary policy, employment, and unemployment. According to the obtained estimates monetary policy shocks invoked lagged, hump‑shaped reactions of output, employment and unemployment in each of the analysed countries.
12
Baxa, Jaromír, Roman Horváth, and Bořek Vašíček. "HOW DOES MONETARY POLICY CHANGE? EVIDENCE ON INFLATION-TARGETING COUNTRIES." Macroeconomic Dynamics 18, no. 3 (March 26, 2013): 593–630. http://dx.doi.org/10.1017/s1365100512000545.
Full textAbstract:
We examine the evolution of monetary policy rules in a group of inflation-targeting countries (Australia, Canada, New Zealand, Sweden, and the United Kingdom), applying a moment-based estimator in a time-varying parameter model with endogenous regressors. From this novel flexible framework, our main findings are threefold. First, monetary policy rules change gradually, pointing to the importance of applying a time-varying estimation framework. Second, the interest-rate smoothing parameter is much lower than typically reported by previous time-invariant estimates of policy rules. External factors matter for all countries, although the importance of the exchange rate diminishes after the adoption of inflation targeting. Third, the response of interest rates to inflation is particularly strong during periods when central bankers want to break a record of high inflation, such as in the United Kingdom or Australia at the beginning of the 1980s. Contrary to common perceptions, the response becomes less aggressive after the adoption of inflation targeting, suggesting a positive anchoring effect of this regime on inflation expectations. This result is supported by our finding that inflation persistence typically decreased after the adoption of inflation targeting.
13
Özker, Ahmet Niyazi. "Recent Deflection Effects of Macro Components in G7 Countries and Contractionary Monetary Expansion Fact." Archives of Business Research 10, no. 7 (July 26, 2022): 131–47. http://dx.doi.org/10.14738/abr.107.12731.
Full textAbstract:
This study discussed the standard criteria points that constitute the reasons for monetary expansion, primarily based on seven countries representing the G7 countries, this expansion in the monetary base brought up a structural relationship model. The fact that frequently brought up the macro fluctuations has been a crucial place as interest rates, unemployment rates and exchange rates variability as the main macro components recently. The effects of these components on economic growth have also provided an important justification for evaluating their recent significant deviations. It is seen that the commonwealth of wealth and economy of the G7 countries in the world constitutes approximately 68 per cent. In this respect, all kinds of targets for economic growth also represent a structure that targets global trade and global trade at significant scales to national income contribution values, albeit nominally. This case also shows why a balanced policy towards increasing interest rates in the recent period and an interest policy compatible with global exchange rate policies are frequently kept on the agenda. This current approach has caused different monetary policies to come to the fore, especially in these countries with a high level of wealth. Essential goals have emerged to reduce costs and turn the growing monetary base into a seigniorage income. These targets pushed the scale effect concerning monetary expansion based on these macro components to an economic growth-based projection.
14
Sithole, Vikela Liso, Tembeka Ndlwana, and Kin Sibanda. "THE RELATIONSHIP BETWEEN MONETARY POLICY AND PRIVATE SECTOR CREDIT IN SADC COUNTRIES." Eurasian Journal of Economics and Finance 9, no. 1 (2021): 46–54. http://dx.doi.org/10.15604/ejef.2021.09.01.004.
Full textAbstract:
This paper empirically examined the relationship between monetary policy and private sector credit in the Southern African Development Community (SADC) group of countries using a panel autoregressive distributed lag (ARDL) co-integration technique for the period from 2009 to 2018. The Hausman test result indicated that the null hypothesis of long-run homogeneity cannot be rejected and hence we accept the pooled mean group estimators (PMGE) as a consistent and efficient estimator. The PMGE results showed that credit to the private sector and gross domestic product have a positive and statistically significant long-run impact on money supply. The impact of credit to the private sector on money supply is shown by the results to be statistically significant and positive both in the short and long run. The impact of gross domestic product on money supply was found to be statistically significant positive in the long run while positive but insignificant in the short run. The study recommends policy attention that is directed towards the appetite for accelerated growth, investment, and employment in the SADC region but more importantly with more regard to the establishment of sustained macroeconomic stability as a precondition to sustainable growth and for the creation of monetary union in the region.
15
Zahid, Muhammad, Muhammad Ramzan, Muhammad Zia Ul Haq, Wonseok Lee, Jinsoo Hwang, and Jimin Shim. "The Significance of Monetary Policy Transmission Mechanism in the Sustainable Development of the SAARC Economic Community." Sustainability 13, no. 23 (November 28, 2021): 13171. http://dx.doi.org/10.3390/su132313171.
Full textAbstract:
The purpose of this study is to examine the monetary policy transmission mechanisms in seven South Asian Association for Regional Cooperation (SAARC) countries to discover the viability of the convergence of the SAARC into a monetary and economic union based on common monetary channels. By employing optimal currency area theory, we used the restricted VAR analysis on the annual data from 1978 to 2017. We find that the money channel response provides proof for the presence of an exchange rate and credit channels. Furthermore, the real sector also responds to changes in fiscal and monetary shocks through the exchange rate and credit channels over short-run to long-run time horizons. This implies that the SAARC is a good candidate due to common exchange rate and credit channels. The function of the variance decomposition and the impulse for forming a monetary and economic union is that they share a coincidental pattern of dynamic reactions of inflation and growth to exogenous shocks. If the SAARC monetary and economic union is created, it will reap overall economic benefits inside and outside of Asia just like the European Union (EU).
16
Krstevska, Aneta. "Monetary Policy Objectives During the Crisis: An Overview of Selected Southeast European Countries." Journal of Central Banking Theory and Practice 4, no. 1 (January 1, 2015): 35–46. http://dx.doi.org/10.1515/jcbtp-2015-0003.
Full textAbstract:
Abstract The recent global crisis brought many challenges to the central bankers worldwide, including the issue of monetary policy objectives. In this view, besides price stability maintenance, a special attention by central bankers during the crisis was given to the output stabilization. This paper explores this issue on the case of a group of countries from Southeast Europe (SEE). For this purpose, rather simple analysis of the policy rate and output gap as well as output gap variability by countries have been provided, aimed at giving some initial insights of the monetary policy and output stabilization during the crisis. Our findings pointed that the central banks in the analysed SEE countries paid attention to the output stabilization, specifically during the crisis period and that was presumably enabled by controllable inflation developments.
17
Makiel, Kamil. "Portfolio diversification during monetary loosening policy." Journal of Risk Finance 16, no. 2 (March 16, 2015): 197–214. http://dx.doi.org/10.1108/jrf-08-2014-0121.
Full textAbstract:
Purpose – The purpose of the paper is to analyze the impact of quantitative easing (QE) performed in the USA on relationship between assets mainly from mining and oil industries. Based on the empirical results, the method of diversified portfolio creation has been proposed. Design/methodology/approach – Nine DCC-GARCH-type models have been estimated for each group centered around a main asset: a company from the oil or mining industry, the appropriate currency pair for its market of origin, commodities which could be used for the diversification of risk involved in investing in a portfolio containing the company, and the largest company from the same industry listed on the US market. Each series of conditional correlations was analyzed with regard to the changes that occurred during the various stages of QE. Findings – The correlations are shown to be stabilizing in the successive stages of QE. The most significant changes in the distribution of correlations can be observed after the first stage of QE. The effects of QE are evident not only in the USA but also in other countries; however, the level of its influence varies between different markets and assets. It is possible to diversify the inflation, currency and market portfolio risk by appropriately chosen asset decomposition. Research limitations/implications – The DCC model is limited, so to provide more precise results, more sophisticated models can be estimated and compared. Practical implications – The paper investigate the fact of stabilization in financial markets relations. The findings may prove the validity of continuation of QE. A portfolio creation method has been proposed – it has been stated that including commodity in portfolio is more appropriate then only-bond–equity mix. Originality/value – The new approach of analyzing financial stability has been proposed – the control for stability of conditional correlation.
18
International Monetary Fund. "The Instruments and Operating Procedures for Conducting Monetary Policy in the Group of Five Countries." IMF Working Papers 89, no. 57 (1989): 1. http://dx.doi.org/10.5089/9781451967074.001.
Full text
19
Orlowski, Lucjan T. "Preparations of the Visegrad Group countries for admission to the European Union: monetary policy aspects." Economics of Transition 3, no. 3 (September 1995): 333–53. http://dx.doi.org/10.1111/j.1468-0351.1995.tb00146.x.
Full text
20
Ghilous, Azeddine, and Adel Ziat. "Domestic Credit and the Balance of Payment Deficit: Evidence from a Heterogeneous Panel of Five Selected Mena Countries." Economics and Business 35, no. 1 (January 1, 2021): 133–48. http://dx.doi.org/10.2478/eb-2021-0009.
Full textAbstract:
Abstract This study investigated the relationship between domestic credit and net foreign assets in the long run through the monetary approach to the balance of payments (MABP) for a panel of five selected MENA countries (Jordan, Egypt, Algeria, Morocco, Tunisia) during the period extending from 1980 to 2019. It employed the second-generation methods in panel data analysis to deal with cross-sectional dependence (CSD) and slope heterogeneity. According to the panel results for Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) estimators, domestic credit has a significant negative impact on net foreign assets in the long run. The country-specific results for the AMG estimator strongly supported the MABP propositions in Jordan, Morocco, and to a lesser extent, in Egypt and Algeria. As for Tunisia, the results do not conform with what MABP predicted. The implicit conclusion is that an increase in domestic credit causes a continuous loss of net foreign assets in Egypt, Jordan, Morocco, and Algeria. Thus, monetary authorities should formulate an appropriate monetary policy to control the domestic credit creation as a mechanism toward improving the balance of payment (BOP) position. Furthermore, the policymakers should concentrate on other policy instruments to correct the BOP deficit rather than focusing on monetary tools, especially in Tunisia, where the findings showed that BOP was not a monetary phenomenon.
21
Keho, Yaya. "Impact of Budget Deficit on Private Consumption inWAEMU Countries: Evidence from Pooled Mean Group Estimation." International Journal of Economics and Finance 8, no. 3 (February 26, 2016): 189. http://dx.doi.org/10.5539/ijef.v8n3p189.
Full textAbstract:
This study empirically investigates the impact of budget deficit on private consumption in seven member countries of the West African Economic and Monetary Union (WAEMU), namely Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal and Togo. It applies the pooled mean group estimation method to annual data covering the period 1970 to 2013. The results show that budget deficit and per capita GDP have long run positive effects on household consumption whereas inflation rate is detrimental to private consumption. This suggests that private consumption cannot be held responsible for any crowding-out effects that budget deficit might have on long run aggregate demand and economic growth in WAEMU countries. Therefore, restricting the size of budget deficits is costly for the development of WAEMU countries.
22
Alabi, M. K., and K. Amirthalingam. "Fiscal Deficit Sustainability and Fiscal Policy Persistence In The West African Monetary Zone." Vidyodaya Journal of Humanities and Social Sciences 06, no. 01 (2021): 99–115. http://dx.doi.org/10.31357/fhss/vjhss.v06i01.08.
Full textAbstract:
The Economic Community of West African States launched the name of its proposed currency, eco, in June, 2019 for its proposed monetary union. The Regional body stipulated certain convergence criteria to be met before member countries could be admitted to the proposed union. One such criteria is that the budget deficit-to-Gross domestic product ratio be less than or equal to three percent. Available data for the past two decades indicate the non-compliance of many of these West African countries to this condition despite having control over both fiscal and monetary policies. This study investigates the sustainability of fiscal deficits in a group of six countries known as the West African Monetary Zone. This study has two objectives: First, to investigate the sustainability of deficits in the West African Monetary Zone and secondly, to examine the absence or presence of fiscal policy persistence. Fiscal deficits are sustainable when an increase in public debt is associated with a corresponding increase in the primary surplus. Using panel data, a fiscal reaction model was estimated. The findings of this study showed that deficits are weakly sustainable and fiscal policy is highly persistent. The implication of weak sustainability is that they are easily vulnerable to external shocks and the possibility of becoming unsustainable is very high. Meanwhile, a highly persistent fiscal policy leaves little or no room for fiscal policy discretion and this is a high risk because it means government won’t respond swiftly as at when due. Based on these findings, the study recommends a suspension of the proposed single currency union
23
Siami-Namini, Sima, and Darren Hudson. "Inflation and income inequality in developed and developing countries." Journal of Economic Studies 46, no. 3 (August 2, 2019): 611–32. http://dx.doi.org/10.1108/jes-02-2018-0045.
Full textAbstract:
Purpose The purpose of this paper is to investigate both linear and/or nonlinear effects of inflation on income inequality and to test the Kuznets hypothesis using panel data of 24 developed countries (DCs) and 66 developing countries (LDCs) observed over the period of 1990–2014. Design/methodology/approach This paper explores the short- and long-run Granger causality relationship between inflation and income inequality using the Toda and Yamamoto (1995) procedure and a Vector Error Correction Model (VECM) approach. The existence of a nonlinear relationship between inflation and income inequality is confirmed implying as inflation rises income inequality decreases. Income inequality then reaches a minimum and then starts rising again. The findings of this paper show the existence of Kuznets “U-shaped” hypothesis between income inequality and real GDP per capita in DCs group, and the existence of Kuznets’ inverted “U-shaped” hypothesis for LDCs group. Findings The results indicate that there is no bi-directional Granger causality between inflation and income inequality in the short-run, but, there is bi-directional Granger causality in the long-run for both the DCs and LDCs group. The results help us to assess the effectiveness of monetary policy in reducing income inequality in both the DCs and LDCs group. As a policy implication, monetary policy is often aimed at controlling the annual rate of inflation in the long-run with a short-run focus on reducing output gaps and creating employment. However, managing inflation may have implications for income inequality. Originality/value This is original research paper which analyzes the “U-shaped” and inverted “U-shaped” paths of income inequality and real GDP per capita for large sample of two group countries including developed and developing countries, respectively. Also, this paper analyzes the nonlinear relationship between inflation and income inequality in two groups. Furthermore, this paper investigates the short- and long-run relationship between variables. The results are important for policy makers.
24
Sek, S. K., and K. K. Lai. "Unveiling the Determinants of Saving-Consumption Relationship: A Panel Data Approach." Malaysian Journal of Mathematical Sciences 16, no. 2 (April 29, 2022): 199–214. http://dx.doi.org/10.47836/mjms.16.2.03.
Full textAbstract:
The impact of uncertainty on saving is termed as precautionary saving. Thus, the main objective of this study is to investigate the effect of external global uncertainties on determining the saving-consumption relationship. In particular, we seek to compare the effect of two types of uncertainties, namely the monetary policy versus economic policy uncertainties in determining the behavior of saving-consumption. The results are compared between the top trade openness versus the least trade openness countries. Besides, the study also seeks to check for the existence and hence the effect of cross-section dependency in the relationship. For this purpose, the mean group (MG), pooled mean group (PMG) and common correlated effects mean group (CCEMG) estimators are applied. The data is from the year 1985 to 2017. The results reveal the existence and significance effect of cross-section dependence among countries and uncertainties matter in the saving-consumption relationship. The main factors that contribute to savings are the GDP per capita and the economic policy uncertainty while the main factors that contribute to consumptions are the GDP per capita and the monetary policy uncertainty.
25
Zerihun, Mulatu Fekadu, Martinus C. Breitenbach, and Francis Kemegue. "Exploring exchange rate based policy coordination in SADC." Studies in Economics and Finance 33, no. 4 (October 3, 2016): 576–94. http://dx.doi.org/10.1108/sef-03-2015-0089.
Full textAbstract:
Purpose This paper explores the possibilities for policy coordination in the Southern African Development Community (SADC) as well as real effective exchange rate (REER) stability as a prerequisite towards sensible monetary integration. The underlying hypothesis goes with the assertion that countries meeting optimum currency area conditions face more stable exchange rates. Design/methodology/approach The quantitative analysis encompasses 12 SADC member states over the period 1995-2012. Correlation matrixes, dynamic pooled mean group (PMG) and mean group (MG) estimators and real effective exchange rate (REER) and real exchange rate (RER) equilibrium and misalignment analysis are carried out to arrive at the conclusions. Findings The study finds that the structural variables used in the PMG model show that there are common fiscal and monetary policy variables that determine REER/RER in the region. However, the exchange rate equilibrium misalignment analysis reveals that SADC economies are characterised by persistent overvaluation at least in the short term. This calls for further sustained policy coordination in the region. Practical implications The findings in this paper have important policy implications for economic stability and for the attempt of policy coordination in SADC region for the proposed monetary integration to proceed. Originality/value This study is the first attempt that relates the exchange rate as a policy coordination instrument among SADC economies.
26
Tetiana, Krychevska. "Global stagflation shocks and the revision of monetary policy: lessons from the crises of the 1970s and 2020s." Ekonomìčna teorìâ 2022, no. 3 (September 30, 2022): 57–88. http://dx.doi.org/10.15407/etet2022.03.057.
Full textAbstract:
The article clarifies what lessons for monetary policy under conditions of stagflationary shocks can be drawn from the analysis of inflation drivers, the global environment and approaches to macroeconomic policy in the run-up to and during the oil shocks of the 1970s and the supply shocks of the 2020s, caused by the pandemic and by the global effects of the full-scale war of the Russian Federation against Ukraine. The following factors have been identified that worsen the situation compared to the crisis of the 1970s for the monetary policy: larger-scale geopolitical threats; a wider complex of supply shocks and accelerated restructuring of the energy supply system under the influence of growing geopolitical threats; much more complex global supply chains; the more differentiated nature of countries’ vulnerability to the current supply shocks, that creates new sources of external instability as a result of the growing gap between interest rates and changes in exchange rates; strengthening the global implications of US Fed policy under conditions of stronger global integration; significantly higher levels of private and public debt; intensification of political and economic confrontation between the largest economies of USA and China. It is shown that the more favorable conditions for monetary policy compared to the 1970s are the developed institutional mechanism of anti-inflationary monetary policy, smaller institutional opportunities for emerging a "wage-price" spiral; greater resilience of EMs to external shocks. In order to increase the resistance of national and global economies to stagflationary shocks we need following corrections in monetary policy: decisive anti-inflationary policy in the face of threat of pro-inflationary behavior of economic agents; coordinated optimization and ensuring trust in monetary and fiscal policy, shifting fiscal policy to overcoming aggregate supply constraints; loosening the assumption of absolute elasticity of aggregate supply in the world of globalization and technological progress; correction the methods of measuring economic slack and estimation of equilibrium interest rate; adaptation of strategy, communication and tools of monetary policy to conditions of radical uncertainty; expanding the concept of monetary policy independence in small open EMDEs by taking into account the disproportionately large losses of this group of countries from importing inflation and recession from leading developed economies.
27
Heller, Peter S. "Aging, Savings, and Pensions in the Group of Seven Countries: 1980—2025." Journal of Public Policy 9, no. 2 (April 1989): 127–55. http://dx.doi.org/10.1017/s0143814x00008096.
Full textAbstract:
ABSTRACTIn the next 30 to 40 years, past changes in fertility and mortality will lead to a significant increase in the share of the elderly. This study suggests that these demographic trends may lead to a decline in the G–7 private savings rate after 2000, compounding the impact of social expenditure pressures on the government's deficit. Moreover, public pensions may decline as a share of the consumption needs of the elderly, leading to financial pressures to reduce their consumption. The reduced burden of child support on the working population will not offset the increased burden of societal support for the elderly.
28
Qori'ah, Ciplis Gema, Catur Sugiyanto, and Amirullah Setya Hardi. "Will Demographic Changes Affect Monetary Policy with Interest Rate Shocks in Indonesia?" Jurnal Ekonomi dan Studi Pembangunan 14, no. 2 (October 26, 2022): 182. http://dx.doi.org/10.17977/um002v14i22022p182.
Full textAbstract:
Changes in the demographic structure and its impact on the economy are becoming interesting issues in almost all countries in the world, including Indonesia. Until 2030, the working age group dominates almost 60 percent of the total population in Indonesia. This phenomenon is a valuable asset which should be used optimally. Moderate adjustment of interest rate policy is an effort applied by Bank Indonesia to maximize the access to credit and public savings. Therefore, this study aims to determine the effect of demographic aspects and the real sector on the effectiveness of monetary policy in the presence of interest rate shocks. This study employed time series data with a time period of 1987Q1 – 2020Q4 in Indonesia. The analysis was performed by using time varying parameter-vector autoregressive (TVP-VAR) and fully modified-ordinary least square (FM-OLS). The results revealed that the population and the elderly population aspects had significant positive effects on the monetary policy, while the variable of productive age and the number of dependence aspects has significant negative effects. The relationship between the real sector and the monetary policy has a different relationship, such as a positive relationship between the savings and technology variables and the domestic credit variable which has a significant negative relationship with the monetary policy.
29
Chai, Hee-Yul, and Sang B. Hahn. "Does Monetary Policy Regime Determine the Nature of the Money Supply?: Evidence from Seven Countries in the Asia-Pacific Region." East Asian Economic Review 22, no. 2 (June 30, 2018): 217–39. http://dx.doi.org/10.11644/kiep.eaer.2018.22.2.343.
Full text
30
Landgraf, Steven, and Abdur Chowdhury. "Factoring emerging markets into the relationship between global liquidity and commodities." Journal of Economic Studies 42, no. 4 (September 14, 2015): 622–40. http://dx.doi.org/10.1108/jes-11-2013-0171.
Full textAbstract:
Purpose – What caused the mid-2000s world commodity price “bubble” and the recent commodity price growth? Some have suggested that rapid global industrial growth over the past decade is the key driver of price growth. Others have argued that high commodity prices are a result of excessively loose monetary policy. The purpose of this paper is to extend the current research in this area by incorporating emerging economies, the BRIC (Brazil, Russia, India, and China) nations specifically, into global measures. Design/methodology/approach – The paper uses a vector error correction (VEC) model and computes variance decomposition and impulse response functions (IRFs). Findings – The empirical analysis suggest that the “demand channel” plays a large part in explaining commodity price growth whether BRIC countries are included or excluded from the analysis. However, excess liquidity may also play a part in explaining price growth. In addition, factoring in BRIC country data leads to the conclusion that unexpected movements in liquidity eventually explain more of the variation in commodity prices than unexpected demand shocks. This specific result is not caught in the sample that only incorporates advanced economies. Research limitations/implications – Despite the theory of Frankel (1986) and the findings of previous global vector autoregression (VAR)/VEC analyses, interest rates, especially shocks, have a minimal impact on consumer and commodity prices. Perhaps future studies should include an interest rate in their analysis that more closely reflects interest rates associated with information used by commodity consumers, producers, and investors. Some analyses such as Hua (1998) use the LIBOR rate, which is highly associated with developed financial markets in the advanced economies. Data quality and availability in the BRIC countries severely limited the length of the time period analyzed and the frequency of the data. Finding longer sample periods or higher frequency data can help to minimize bias in future research. In this paper, monetary aggregates and short-term interest rates were loosely connected to monetary policy. It would also be interesting to directly examine how special programs like quantitative easing influenced global liquidity. Practical implications – The results of the IRFs and variance decompositions confirm some of the previous findings reported in Belke et al. (2010), Hua (1998), and Swaray (2008) that suggest that positive shocks to liquidity positively impact commodity prices. In particular, both samples suggest that this is a short-run impact that occurs after two quarters. However, in the sample that includes information about liquidity from BRIC countries, excess liquidity positively affects commodity prices after six and seven quarters as well. The insignificant results of Granger causality tests of the effect of monetary variables on commodity prices suggests that this relationship is limited to movements in liquidity that is unexpected by agents in the system. These “shocks” could be attributed to a number of factors including exogenous monetary policy changes such as the unprecedented responses by the Federal Reserve during and after the 2008 global financial crisis. Social implications – First, empirical research that claims to analyze relationships at a “global” level needs to account for the growing influence of emerging economies and not simply the advanced economies. Otherwise, results may be biased as they were when too much of the forecast error variance in commodity prices was attributed to shocks to output when it should have been attributed to shocks to excess liquidity. Second, those who criticize expansionary monetary policy in the advanced countries, especially by the Federal Reserve, for pushing up commodity prices should also direct their attention toward monetary authorities elsewhere, especially the BRIC countries, since information on excess liquidity from these countries adds to the influence that global excess liquidity has on commodity prices. Third, monetary policymakers in the advanced countries need to closely monitor liquidity in the BRIC countries, since the discrepancies between the ALL and ADV samples suggests that BRIC excess liquidity affects commodity prices in a way that cannot be captured by examining advanced country data alone. Originality/value – No other paper in this area looked at the BRIC countries.
31
Bernhard, William, J. Lawrence Broz, and William Roberts Clark. "The Political Economy of Monetary Institutions." International Organization 56, no. 4 (2002): 693–723. http://dx.doi.org/10.1162/002081802760403748.
Full textAbstract:
In recent decades, countries have experimented with a variety of monetary institutions, including alternative exchange-rate arrangements and different levels of central bank independence. Political economists have analyzed the choice of these institutions, emphasizing their role in resolving both the time-inconsistency problem and dilemmas created by an open economy. This “first-generation” work, however, suffers from a central limitation: it studies exchange-rate regimes and central bank institutions in isolation from one another without investigating how one monetary institution affects the costs and benefits of the other. By contrast, the contributors to this volume analyze the choice of exchange-rate regime and central bank independence together and, in so doing, present a “second generation” of research on the determinants of monetary institutions. The articles incorporate both economic and political factors in explaining the choice of monetary institutions, investigating how political institutions, democratic processes, political party competition, and interest group pressures affect the balance between economic and distributional policy objectives.
32
Jakšić, Pavle. "Measures taken by selected countries for preservation of the financial market." Ekonomski izazovi 10, no. 20 (2021): 70–80. http://dx.doi.org/10.5937/ekoizazov2120070j.
Full textAbstract:
The global economic crisis occurred in 2008. The causes of the crisis are related to the economy of the United States. The crisis found its foothold within this economy, but it quickly spread its effects to the whole world. The crisis affected primarily the banking sector, given that the policy of low interest rates was in force at the time. The world economic crisis has left visible consequences in the Republic of Serbia. The beginning of the crisis in this area is related to 2008. After a decade of stabilizing the financial system, the whole world is once again facing a crisis of global proportions. The reason for this crisis lies in the epidemic of the coronavirus. The research in the paper established that the National Bank of Serbia also decided to apply unconventional measures, primarily quantitative reliefs and so-called helicopter money dropping program. The results of the measures can be presented through the analysis of the value of the monetary aggregates of selected countries. The fact is that the economic crisis that occurred after the health crisis caused by the coronavirus pandemic requires a quick reaction of monetary and fiscal policy, which was indisputably followed by analyzing a group of selected countries.
33
Cerón, Juan A. "La respuesta de la política fiscal a la actividad económica en los países desarrollados." Studies of Applied Economics 30, no. 1 (April 13, 2020): 369. http://dx.doi.org/10.25115/eea.v30i1.3402.
Full textAbstract:
This paper studies how discretional fiscal policy has reacted to economic fluctuations in a group of OCDE countries during the last four decades. Following the recent literature, we use the cyclically adjusted primary balance as a tool to identify government fiscal activity. The results suggest a limited use of fiscal policy in expansion or recession circumstances just as a marked activity in economic stability situations. The reasons behind this performance barely conventional will be examined; we analyze the different responses of taxes and expenditures, pay attention to the importance of fiscal policy at the beginning and evaluate the monetary policy accommodation.
34
AYENAGBO, Kossi, and Mamadou BOUKARI. "Challenges in Trade openness, Governance and Industrial Productivity in West African Economic and Monetary Union (WAEMU) Countries." Applied Economics and Finance 8, no. 5 (September 3, 2021): 18. http://dx.doi.org/10.11114/aef.v8i5.5343.
Full textAbstract:
Inward-looking development strategies can lead to marginalization and slow growth especially for the small African domestic markets. However, when weak economies try to participate in the global economy studies in Southeast Asia show they end with significant challenges. Therefore, this paper analyzed the effects of trade openness on industrial development in West African Economic and Monetary Union (WAEMU) countries. However, due to data availability, the study covered seven countries over the 1996 – 2018 period. The pooled-mean group method was used in the analysis. The results of the analysis showed that, in the long run, trade openness did not benefit the development of the industrial sector in all the countries studied. However, in the short run, the results revealed the specificities of each country. These short-run results showed that trade openness has a positive and significant effect on the industry added values observed in countries such as Burkina Faso, Niger and Togo. The results also showed that government inefficiency has a negative impact on the development of the industrial sector in the long -run for all the countries studied. Furthermore, the indicator capturing the degree of freedom of corruption had a positive impact on the development of the industrial sector in the short or long run. Therefore, active engagement with the forces of globalization need strategic approaches in their integration in developing countries.
35
Malik, Afia. "Crude Oil Price, Monetary Policy and Output: The Case of Pakistan." Pakistan Development Review 47, no. 4II (December 1, 2008): 425–36. http://dx.doi.org/10.30541/v47i4iipp.425-436.
Full textAbstract:
Rapid rises in the prices of crude oil in the decade of 2000s have raised concerns among policy-makers around the world, as the theoretical and empirical literature has established that oil price shocks may have an adverse impact on the macro economy of the country. In particular, for the oil importing developing countries like Pakistan, this upward trend in the price of oil can have serious repercussions in terms of creating inflationary pressures in the economy, increasing budget deficit and balance of payment problems, and thus affecting the GDP growth. Pakistan was on the path of rising GDP growth in the first seven years of this decade. But in the year 2007-08, the situation has changed. This oil price shock could possibly be one of the reasons. As an impact of rising growth rate of GDP, demand for energy has also gone up rapidly in this period. In the energy mix for the year 2005-06, oil accounts for 32 percent of the total energy used in Pakistan, and it is the second largest source of energy used after natural gas, which accounts for 39 percent. With oil being the second largest source of energy used along with almost constant rate of its production Pakistan is heavily dependent on oil imports from Middle East exporters (Saudi Arab playing the lead role). Almost 82 percent of the demand for petroleum products in the country is met through imports.1 Pakistan spent about 44 percent of export earnings on oil imports in 2006-07. This percentage was only 27 percent in 2004-05. Therefore, the international oil price increase has a direct impact on the macro economy of the country, especially on the oil price GDP relationship. The share of net oil imports in GDP is an indicator of the relative importance of the oil price rise to the economy in terms of the potential adjustments needed to offset it. For Pakistan over the last few years, this ratio has risen from 3.13 in 1990-91 to -5.24 in 2005-06 [Malik (2007)]. With such a high ratio, unless country is running in surplus, or has extremely large foreign exchange reserves, high oil price is dealt by severe macro economic adjustments.
36
Tesler, Riki, Sharon Barak, Orna Reges, Concepción Moreno-Maldonado, Rotem Maor, Tânia Gaspar, Oya Ercan, et al. "Identifying Cardiovascular Risk Profiles Clusters among Mediterranean Adolescents across Seven Countries." Healthcare 10, no. 2 (January 29, 2022): 268. http://dx.doi.org/10.3390/healthcare10020268.
Full textAbstract:
Cardiovascular diseases (CVDs) are the number one cause of death globally and are partially due to the inability to control modifiable lifestyle risk factors. The aim of this study was to analyze the profiles of adolescents from seven Mediterranean countries (Greece, Israel, Italy, Macedonia, Malta, Portugal, Spain) according to their modifiable lifestyle risk factors for CVD (overweight/obesity, physical activity, smoking, alcohol consumption). The sample consisted of 26,110 adolescents (52.3% girls) aged 11, 13, and 15 years who participated in the Health Behavior in School-aged Children (HBSC) survey in 2018 across the seven countries. Sociodemographic characteristics (sex, age, country of residence, socioeconomic status) and CVD modifiable lifestyle risk factors (overweight/obesity, physical activity, smoking, alcohol consumption) were recorded. A two-step cluster analysis, one-way analysis of variance, and chi-square test were performed. Four different cluster groups were identified: two low-risk groups (64.46%), with risk among those with low physical activity levels; moderate-risk group (14.83%), with two risk factors (unhealthy weight and low physical activity level); and a high-risk group (20.7%), which presented risk in all modifiable lifestyle risk factors. Older adolescents reported a higher likelihood of being in the high-risk group. Given that the adolescence period constitutes an important time for interventions aimed at CVD prevention, identifying profiles of moderate- and high-risk adolescents is crucial.
37
Beck, Krzysztof. "Business cycle synchronization in European Union: regional perspective." Equilibrium 11, no. 4 (December 31, 2016): 785. http://dx.doi.org/10.12775/equil.2016.036.
Full textAbstract:
The recent turmoil in the euro area once more forces the EU authorities to reconsider the future of further monetary integration. One of the most commonly used criteria for successful monetary integration in contemporary research is business cycle synchronization (BCS). Though BCS has been vastly described at country level, not as much attention has been paid to the degree of BSC at regional level. The topic is important for two main reasons. Firstly, determining the degree of BCS at the regional level can help in the assessment of monetary policy effectiveness on the country level, as well as give a point of reference for evaluation of prospective costs of participation in a monetary union. Secondly, there is a theoretical dispute within the optimum currency areas literature between the ‘European Commission’ and the ‘Krugman’ view that can be resolved to a large extent trough regional analysis. In order to assess BCS in the EU, Hodrick-Prescott, as well as Christiano and Fitzgerald filter to time series of real GDP for 24 countries, 82 NUTS 1, 242 NUTS 2 and 1264 NUTS 3 regions over the period between 1998 and 2010. The data was later used to create bilateral measures of BSC, which gave 276 observations on the country level, 3321 on NUTS 1, 29161 on NUTS 2 and 798216 on NUTS 3 level. The results of the analysis support the ‘European Commission’ view and show a very high degree of BSC within EU countries. The country level analysis also reveals that within the EU there is a group of countries that could form an effectively working monetary union based on the BCS criterion.
38
Wysokińska, Zofia. "The Effects of Export Expansion Policy in Poland in the Context of Recommendations of Global Organizations." Comparative Economic Research. Central and Eastern Europe 22, no. 2 (July 17, 2019): 69–85. http://dx.doi.org/10.2478/cer-2019-0013.
Full textAbstract:
The aim of this paper is to present the results of an analysis and evaluation of the implementation of one of the tasks of the Strategy for Responsible Development (SRD) until 2020 (with a perspective up to 2030), adopted in Poland, which should increase Poland’s foreign expansion. The paper attempts to present these results in the context of diagnoses, forecasts and recommendations (developed by experts of global organizations) regarding macroeconomic policy directions for the coming years recommended for member countries of such organizations as the International Monetary Fund, the World Bank Group, the OECD and UNCTAD/UN.
39
Saji, T. G. "Can BRICS Form a Currency Union? An Analysis under Markov Regime-Switching Framework." Global Business Review 20, no. 1 (August 11, 2017): 151–65. http://dx.doi.org/10.1177/0972150917721835.
Full textAbstract:
The article applies Markov Regime-Switching Model (MRSM) to explore the prospects of forming currency union among BRICS countries. Our data span the period before and after the formation of the group, and the study compares the regime-switching behaviour of their real exchange rate markets accordingly. The analysis found divergent real exchange market behaviour of the member countries before the formation of the group. However, after the integration of economies, the convergences in central bank’s direct intervention behaviours are evident especially among India, China and South Africa. The study concludes that the inclusion of the stronger policy interaction in the region now and future, especially in monetary management, unveils the chance of a strong currency union among BRICS members.
40
Rogachevskaya, Maya. "Monetary Reform of G.Ya. Sokolnikov." Journal of Economic History and History of Economics 22, no. 3 (August 26, 2021): 432–60. http://dx.doi.org/10.17150/2308-2488.2021.22(3).432-460.
Full textAbstract:
The article covers the transformations in the sphere of commodity-money relations during establishment of Soviet power. The period under review starts from the chaotic monetary policy in the first post-revolutionary years with attempts to abandon money exchange to the period of creating stable money circulation in the country. NEP brings positive changes, when trade resumes, monetary wages are required, and a for-profit model (khozraschyot) is established. Theoretically, the advantage of a fixed equivalent of value is proved, and stable money is needed, the basis of which is gold. The State Bank is restored. It becomes possible to issue a bank card backed by gold. Under the People's Commissariat of Finance, a Currency Department is created. G. Ya. Sokolnikov is appointed to the post of People's Commissar, a group of specialists is selected, among them N. Kutler, L. Yurovsky, V. Tarnovsky. The reform begins with the implementation of two denominations that have eliminated many varieties of banknotes and reduced their number. The chervonets becomes the main monetary unit, which has a gold content and security. In 1924, the reform is completed. The Soviet Union is able to restore the national economy. The article states that the reform proved the viability of the Soviet currency, as well as the high qualification and theoretical training of its performers. Being in more difficult conditions than other countries participating in the First World War, the Soviet Union carried out monetary reform before them and with a higher result.
41
ElKelish, Walaa Wahid, and Jon Tucker. "Property rights institutions and bank performance across countries." Managerial Finance 41, no. 1 (January 12, 2015): 80–101. http://dx.doi.org/10.1108/mf-10-2013-0288.
Full textAbstract:
Purpose – The purpose of this paper is to investigate the relationship between the quality of property rights institutions (PRIs) and bank financial performance in an empirical study of 136 countries over the period 1999-2006. Design/methodology/approach – The quality of PRIs and financial accounting-based measures of bank performance are obtained from the Economic Freedom of the World Project (Gwartney et al., 2006), the Polity IV Project, the World Bank data indicators database, and the International Monetary Fund. Several multiple regression analyses are conducted to test the study hypotheses. Findings – The results reveal that the quality of legal structure and security of PRIs positively (negatively) affects both bank cost efficiency (inefficiency) and profitability. The presence of a quality political structure negatively (positively) affects bank cost efficiency (inefficiency). The quality of political structure has no direct impact on bank profitability. The impact of PRIs on bank cost efficiency is more evident in the upper middle and high income group of countries than in the low and lower middle income group of countries. An appropriate level of PRI quality is essential to achieve both competition and development. Practical implications – The paper highlights policy implications for international policy makers, regulators, and the management of banks who are interested in banking sector development across countries. Originality/value – The study investigates the fundamental importance of PRI quality in its effect on the banking sector and extends the largely US-focused literature to a broader international setting.
42
Rubio, Margarita, and José A. Carrasco-Gallego. "Liquidity, interest rates and house prices in the euro area: a DSGE analysis." Journal of European Real Estate Research 9, no. 1 (May 3, 2016): 4–25. http://dx.doi.org/10.1108/jerer-03-2015-0014.
Full textAbstract:
Purpose This study aims to build a two-country monetary union dynamic stochastic general equilibrium (DSGE) model with housing to assess how different shocks contributed to the increase in housing prices and credit in the European Economic and Monetary Union. One of the countries is calibrated to represent the core group in the euro area, while the other one corresponds to the periphery. Design/methodology/approach In this paper, the authors explore how a liquidity shock (or a decrease in the interest rate) affects house prices and the real economy through the asset price and the collateral channel. Then, they analyze how a house price shock in the periphery and a technology shock in the core countries are transmitted to both economies. Findings The authors find that a combination of an increase in liquidity in the euro area coming from the common monetary policy, together with asymmetric house price and technology shocks, contributed to an increase in house prices in the euro area and a stronger credit growth in the peripheral economies. Originality/value This paper represents the theoretical counterpart to empirical studies that show, through macroeconometric models, the interrelation between liquidity and other shocks with house prices. Using a DSGE model with housing, the authors disentangle the mechanisms behind these empirical findings.
43
AKRAM, TANWEER, and ANUPAM DAS. "THE DYNAMICS OF GOVERNMENT BOND YIELDS IN THE EURO ZONE." Annals of Financial Economics 12, no. 03 (September 2017): 1750011. http://dx.doi.org/10.1142/s2010495217500117.
Full textAbstract:
This paper investigates the determinants of nominal yields of government bonds in the euro zone. The pooled mean group (PMG) technique of cointegration is applied on both monthly and quarterly datasets to examine the major drivers of nominal yields of long-term government bonds in a set of 11 euro zone countries. Furthermore, the autoregressive distributive lag (ARDL) methods are used to address the same question for individual countries. The results show that short-term interest rates are the most important determinants of long-term government bonds’ nominal yields. These results support Keynes’s view that short-term interest rates and other monetary policy measures have a decisive influence on long-term interest rates on government bonds.
44
Sindze, Paul, Phouthakannha Nantharath, and Eungoo Kang. "FDI and Economic Growth in the Central African Economic and Monetary Community (CEMAC) Countries: An Analysis of Seven Economic Indicators." International Journal of Financial Research 12, no. 1 (December 25, 2020): 1. http://dx.doi.org/10.5430/ijfr.v12n1p1.
Full textAbstract:
Foreign Direct Investment (FDI) can help create jobs, reduce unemployment, improve world-class technology transfer, and grow countries’ economies. During the past 10 years, FDI net inflows to the Central African Economic and Monetary Community (CEMAC) has highly fluctuated and remained below to the total amount reached in 2010. The focus of this research was to statistically analyze the mean difference for FDI net inflows, GDP per capita, natural resource rents, inflation rate, corruption index, trade openness index, rule of law index, and political stability index received in each CEMACs country. Paired t-test methodology was used to conduct the analysis. Data were collected from the World Bank Group database from 2007 to 2017. This research revealed that FDI net inflows decreased by an average of two billion dollars in CEMAC when conducting a mean-to-mean analysis from the recession period to the recovery period. The findings showed that FDI net inflows inversely affected the GDP per capita in Congo and Gabon. FDI net inflows may have contributed to the improvement of the GDP per capita in countries such as Cameroon, Chad, Central Africa Republic, and Equatorial Guinea. Researcher recommendation for continued study is a qualitative research using the same variables through the same periods in addition to year 2018. Improvement of economic policies, regulations and laws, as well as the digitalization of public funds management are also recommended to boost economic development and growth in the CEMAC region.
45
Zharikov, Mikhail V. "The Model of a Shared Interest Rate for a Group of Countries to Circulate a Digital Currency: Featuring the BRICS." Journal of Central Banking Theory and Practice 11, no. 2 (April 30, 2022): 187–208. http://dx.doi.org/10.2478/jcbtp-2022-0019.
Full textAbstract:
Abstract The purpose of the research is to offer a comparative analysis of a libertarian and gradual approach to introducing a market interest rate. The topic is time-relevant since the economies of the emerging markets today face difficult challenges posed by economic, financial and health-care crises, impending price stability, future growth and money market equilibrium. A digital currency is a special issue today due to the outbreak of covid-19, which has made many central banks think about contactless means of payment. The author revealed policy tools to circulate a hypothetical digital currency for the BRICS, including a shared interest rate and the quantity of digital money in circulation needed for the penta-lateral use. The theoretical significance is that the research tries to lay the foundation for a model to launch a virtual regional money market for the countries of the BRICS as well as their partners in wider parts of Europe and Asia. In practical terms, the article recommends a number of tools for monetary policy to deal with the coronavirus crisis of 2020.
46
Josifidis, Kosta, Emilija Beker-Pucar, Sladjana Srdic, and Gabriela Ivan. "Inflation targeting in advanced vs. emerging economies before and after the crisis." Panoeconomicus 61, no. 1 (2014): 79–106. http://dx.doi.org/10.2298/pan1401079j.
Full textAbstract:
Emerging economies have specificities which distance them compared to advanced economies in practicing inflation targeting (IT) monetary regime. One of the main differences in performing IT in advanced compared to emerging economies is ?fear of floating? problem in emerging group. However, on the road from exchange rate (ER) as a nominal anchor to IT, differences between advanced and emerging economies concerning ?fear of floating? have been more or less narrowed. In this paper we are concentrated to selected aspects of ER pass-through to prices and output, as well as (in)direct monetary policy reactions to ER shocks, trying to find out is significant difference observable between advanced and emerging IT countries in pre-crisis period and (post)crisis period. The comparison is made on the basis of forecast error variance decompositions from estimated Vector Autoregression (VAR) / Vector Error Correction (VEC) models. ?Fear of floating? phenomenon should not be exclusively applied to emerging economies, especially in the crisis period burdened with external shocks. The role of ER in IT monetary framework is strengthened with higher internal vulnerability to ER shocks, despite the level of economic development. Advanced countries more use interest rate as an indirect way to withstand ER shocks, while emerging economies more use direct way via foreign exchange interventions to withstand the ER shocks.
47
Igorevna, Kuzmenko Valentina, Mukhametgalieva Safiya Khamitovna, Sitdikov Farit Foatovich, Fardeeva Irina Nikolaevna, and Ageev Vyacheslav Nikolaevich. "Trade and economic cooperation of the member countries of the Eurasian Economic Union." Laplage em Revista 6, Extra-A (December 14, 2020): 162–66. http://dx.doi.org/10.24115/s2446-622020206extra-a575p.162-166.
Full textAbstract:
The Eurasian Economic Union (EAEU) was formed by the heads of Russia, Belarus and Kazakhstan in 2014. Since January 1, 2015, the agreement on the formation of the association entered into force. On January 2, 2015, Armenia joined the union, and on August 12, 2015, Kyrgyzstan became a member of the EAEU. For this economic community, the priority is to develop a single policy in the field of trade, economic, monetary and tax policies. The given article considers the main aspects of trade and economic cooperation of the participating countries of the EAEU integration group. Within the framework of these union countries is developing regional integration cooperation, creating certain agreements for the implementation of long-term projects to improve partnerships. The text of the work identifies the main goals and priorities for the effective work of the union.
48
Sek, Kun. "Effect of oil price pass-through on domestic price inflation: Evidence from nonlinear ARDL models." Panoeconomicus 66, no. 1 (2019): 69–91. http://dx.doi.org/10.2298/pan160511021s.
Full textAbstract:
We intended to demonstrate that oil price can have a different passthrough effect into domestic prices at consumer and production levels subject to an oil dependency factor. The results were compared between oil-importing and oil-exporting countries. The nonlinear autoregressive distributed lags (NARDL) models were used to capture the asymmetric pass-through effects of oil price increases and decreases in consumer price and producer price respectively. Our results revealed that oil price changes can have asymmetric effect on consumer price index (CPI) inflation directly and indirectly with more influential impact of indirect effect. This result holds for both groups of countries. The effect on producer price is much larger especially in oil-importing group due to the high dependence of these countries on oil. Oil price changes did lead to increases in consumer prices in oil-importing countries. This may due to effective monetary policy that enhances price stickiness in the economy.
49
CROWLEY, PATRICK M., and AARON SCHULTZ. "MEASURING THE INTERMITTENT SYNCHRONICITY OF MACROECONOMIC GROWTH IN EUROPE." International Journal of Bifurcation and Chaos 21, no. 04 (April 2011): 1215–31. http://dx.doi.org/10.1142/s0218127411028957.
Full textAbstract:
Synchronization of growth rates are an important feature of international business cycles, particularly in relation to regional integration projects such as the single currency in Europe. Synchronization of growth rates clearly enhances the effectiveness of European Central Bank monetary policy, ensuring that policy changes are attuned to the dynamics of growth and business cycles in the majority of member states. In this paper, a dissimilarity metric is constructed by measuring the topological differences between the GDP growth patterns in recurrence plots for individual countries. The results show that synchronization of growth rates were higher among the euro area member states during the second half of the 1980s and from 1997 to roughly 2002. Apart from these two time periods, euro area member states do not appear to be more synchronized than a group of major international countries, suggesting that apart from specific times when European integration initiatives were being implemented, globalization was likely the dominant factor behind international business cycle synchronization.
50
Świtała, Filip, Iwona Kowalska, and Karolina Malajkat. "Size of Banks as a Factor Which Impacts the Efficiency of the Bank Lending Channel." e-Finanse 16, no. 1 (March 1, 2020): 36–44. http://dx.doi.org/10.2478/fiqf-2020-0005.
Full textAbstract:
AbstractIn most economies the banking sector plays the major role in the financial system. Therefore, it is of great importance to analyse and understand the mechanism of transmission of monetary policy and its impact on the banking sector. One of the possible repercussions of changing the level of official interest rates is the ability to influence the size of bank lending, by means of the bank lending channel. The key aspect our research is a thorough understanding of the functioning of the bank lending channel, with the main goal of this study being an examination of the efficiency of monetary policy transmission through the bank lending channel depending on the size of banks in the sector. This paper examines the abovementioned relation using annual data from 1995-2015 by 1709 commercial and cooperative banks from 27 EU countries and analyzing them in various econometric models. The results indicate that there is a positive impact of a bank’s size on loan growth (defined as the bank size increases, the impact of changes in interest rates in the bank’s lending policy is getting smaller), however, interaction between the variables of size and the interest rate, was proved to be insignificant (in the group of all analysed banks, as well as in commercial and cooperative banks separately).