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Monetary Policy In Liberalized Financial Markets: The Mexican Case, Santiago Capraro, Carlo Panico

PERI Working Papers

The paper examines the conduct of monetary policy and the institutional organization of economic policy in Mexico during the years of financial liberalization and the outgrowth of the financial industry. It argues that they have favored the monetary and financial stability at the cost of reducing investment and negatively affecting the strength of the productive structure and the international competitiveness of the Mexican economy. The paper argues that these negative results will eventually make the present conduct of monetary policy unable to pursue the monetary and financial stability of the economy. Unlike other outstanding critical literature, the emphasis of our …

Monetary Conditions, Oil Revenue And Economic Growth In Nigeria, Kingsley Imandojemu, Akinlosotu Nathaniel Toyosi

Bullion

This study investigated the relationship between macroeconomic conditions, oil revenue, and economic growth in Nigeria within the period 1981- 2017. To determine this, annual time series data from the World Development Indicator (WDI) and Central Bank of Nigeria Statistical Bulletin was collected for the dependent variable - Gross Domestic Product (the proxy for economic growth) and the independent variables: Labour force participation of productive working age (POP), Interest rate (INTR), Exchange rate (EXCH), Inflation rate (INF) and Oil revenue growth rate (OILR). Taking all variables in natural logarithm, the Ordinary Least Squares (OLS) method, Augmented Dickey Fuller (ADF) unit-root test …

Foreign Exchange Management : Nigeria's Experience With The Unholy Trinity, Moses K. Tule

Bullion

Foreign exchange management is a major component of monetary policy in many central banks in developing and emerging market economies. This is because maintaining price stability is a key mandate of many central banks in ensuring overall macroeconomic stability. An effective exchange rate policy compliments the objectives of monetary policy. The relationship between monetary policy and the exchange rate can be explained in three different channels namely; income channel, price channel and interest rate channel. This are what the article will deliberate on from Nigeria's perspective.

Three Essays On Asset Price Bubbles, Frank Ofori-Acheampong

Dissertations

This dissertation examines various issues associated with asset price bubbles. In the first essay, a Markov regime-switching model with time-varying transition probabilities is developed to identify asset price bubbles in the S&P 500 Index. The model nests two different methodologies; a state-dependent regime-switching model and a Markov regime-switching model. Three bubble regimes are identified; dormant, explosive, and collapsing. Time-varying transition probabilities are specified for each of the nine possible transitions in the Markov regime-switching model. Estimation of the model is done using conditional maximum likelihood with the Hamilton filter. Results show that transition probabilities depend significantly on trading volume and …

A New Keynesian Approach To Estimating Welfare Losses Under Strict And Flexible-Targeting Regimes, Shawn Weber

Theses and Dissertations

How do different inflation-targeting regimes affect the monetary loss-function of a central bank aiming at stabilizing inflation around an inflation target and stabilizing the real economy? Under a basic New-Keynesian framework, this paper examines the effect of inflation-targeting regimes on the monetary loss function of a central bank.

Understanding Economic Recession, The Role And Limitations Of Monetary Policy In Recovery, Mustapha Adewale Adigun

Bullion

This article examines the causes and effect of economic recession, highlights the role of monetary policy in economic recovery from a recession and proposes appropriate policy options to address the menace of recession with a view to promote economic recovery. Following the introduction, section 2 addresses the definition, causes, features and brief history, section 3 discuss recent economic recession in Nigeria, section 4 highlights the role of monetary policy and section 5 concludes the paper.

Monetary Policy Management In Nigeria Today: Issues In Stagflation And Recession, Moses K. Tule

Bullion

This article explore the rare and challenging economic problem faced by Nigeria refers to as stagflation. i.e. a condition characterized by the co-existence of declining growth rates along with high unemployment and inflation rates. These negative economic development have raised major concern for policy makers and other economic agents because of the adverse effects on investment, financial stability and livelihood.

The Effectiveness Of Central Bank Forward Guidance Under Inflation And Price-Level Targeting, Stephen J. Cole

Economics Faculty Research and Publications

This paper examines the effectiveness of central bank forward guidance under inflation and price-level targeting monetary policies. The results show that the beneficial effects of forward guidance increase if a central bank pursues price-level targeting instead of inflation targeting. Output and inflation respond more favorably to forward guidance with price-level targeting than inflation targeting. A monetary policy rule that aggressively reacts to inflation and includes interest rate inertia narrows the performance gap between the two policy regimes. However, forward guidance with price-level targeting is still preferred to forward guidance with inflation targeting after performing multiple robustness checks.

The Dynamic Interrelationship Between Interest Rate And Macroeconomic Policy Objectives: Case Of The United Kingdom, Mostafa Aboelsoud, Dimitrios Paparas, Azzouz Zouaoui, Mustafa Kasim

Economics

The objective of this study is to provide empirical evidence on the short- and long-run relationships between the short-term interest rate, London interbank offered rate (LIBOR) and macroeconomic policy objectives, such as price stability, economic growth, and stability of the exchange rate market. For this purpose, we deploy quarterly frequency data from the United Kingdom between 2000 and 2015 and adopt a multiple regression model.

Furthermore, this study uses the Johansen, Stock-Watson cointegration test and the Granger Causality test in order to examine the dynamic short- and long-run relationships among LIBOR, the consumer price index as a proxy of price …

Nonlinear Taylor Rules: Evidence From A Large Dataset, Jun Ma, Eric Olson, Mark E. Wohar

Economics Faculty Publications

In this paper we estimate nonlinear Taylor rules over the 1986–2008 sample time period and augment the traditional Taylor rule by including principal components to better model Federal Reserve policy. Including principal components is useful in that they extract information about the overall economy from multiple economic indicators in a statistically optimal way. Additionally, given that uncertainty may influence Federal Reserve decisions, we incorporate an uncertainty index in the reaction function of the Federal Reserve. We find substantial evidence that the Federal Reserve responded to increases in macroeconomic uncertainty by cutting the Federal Funds rate over the sample period. We …

Essays On Money, Banking, And Finance, Duong Ngo

Legacy Theses & Dissertations (2009 - 2024)

This doctoral dissertation contains three essays on the topics of money, banking, and finance.

Essays On Public Policy Analysis Using Macroeconomic Models, Akihiro Nomura

Legacy Theses & Dissertations (2009 - 2024)

This thesis is composed of three separate essays.

Implications Of Macroeconomic Controls In Ghana, Wisdom Takumah

Electronic Theses and Dissertations

Ghana’s desire to achieve sustainable economic growth with relatively stable price level pursue both monetary and fiscal policies that could lead to macroeconomic. This study examines the effects of fiscal and monetary policy on economic growth and determine the level of convergence of growth for Ghana using structural equation modeling (SEM) using time series data from 2008 to 2017. Both short run and long-run results revealed that the ratio of government spending to private investment was statistically significant and it exerted a positive impact on economic growth, an indication that government expenditure is a key channel through which we can …