Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 9 of 9
Full-Text Articles in Economics
U.S. Monetary Policy And The Decline In The Interest Rates (1990-2007), Santiago Capraro, Carlo Panico, Luis Daniel Torres-González
U.S. Monetary Policy And The Decline In The Interest Rates (1990-2007), Santiago Capraro, Carlo Panico, Luis Daniel Torres-González
PERI Working Papers
Interest rates in the US and in other countries have experienced persistent and generalised declines since the 1980s. The main interpretations of this phenomenon ignore the role of monetary factors, such as financial and monetary policy. The essay proposes an alternative interpretation based on the choice of the Federal Reserve (FED) to conduct monetary policy by attributing high priority to financial stability. The interaction between changes in financial regulation, the transformation of "specialized" into "universal” banking, and the concern with financial instability have led the central bank to add to the role of "lender of last resort" that of "lender …
The Nature Of Money And The Theory Of International Trade: Thornton And Ricardo, Isabella Weber
The Nature Of Money And The Theory Of International Trade: Thornton And Ricardo, Isabella Weber
PERI Working Papers
A rich recent literature reinvestigates the nature of money, but little attention has been paid to the ramifications of the ways in which we theorize money for the theory of international trade.This paper examines the logical relationship between the neutrality of money and selfbalancing trade based on Henry Thornton and David Ricardo as two foundational contributions to credit and commodity money theories respectively. I show that both authors theorize trade as self-balancing whenever money is conceptualized as neutral. I distinguish two notions of the neutrality of money: ex ante and ex post neutrality. In Thornton’s Paper Credit money is not …
The Nature Of Money And The Theory Of International Trade: Thornton And Ricardo, Isabella Weber
The Nature Of Money And The Theory Of International Trade: Thornton And Ricardo, Isabella Weber
PERI Working Papers
A rich recent literature reinvestigates the nature of money, but little attention has been paid to the ramifications of the ways in which we theorize money for the theory of international trade. This paper examines the logical relationship between the neutrality of money and self- balancing trade based on Henry Thornton and David Ricardo as two foundational contributions to credit and commodity money theories respectively. I show that both authors theorize trade as self-balancing whenever money is conceptualized as neutral. I distinguish two notions of the neutrality of money: ex ante and ex post neutrality. In Thornton’s Paper Credit money …
From Trilemma To Dilemma: Monetary Policy Effectiveness After The Bretton Woods World, Hasan CöMert
From Trilemma To Dilemma: Monetary Policy Effectiveness After The Bretton Woods World, Hasan CöMert
PERI Working Papers
Many argue that the concept of the trilemma, referring that out of independent monetary policy, free capital movement and fixed exchange rate regime only two can exist at the same time, is a potent tool to explore the effectiveness of monetary policy during the Bretton Woods (BW) regime and afterward. However, under this regime, besides capital controls, regulated domestic financial markets and diversity in central bank instruments contributed to the existence of the independent monetary policy. After the collapse of the BW system, capital controls were lifted, domestic financial markets were deregulated, remaining regulations were not implemented properly, and short-term …
Monetary Policy In Liberalized Financial Markets: The Mexican Case, Santiago Capraro, Carlo Panico
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 …
Is There A Case For Formal Inflation Targeting In Sub-Saharan Africa?, James Heintz, Léonce Ndikumana
Is There A Case For Formal Inflation Targeting In Sub-Saharan Africa?, James Heintz, Léonce Ndikumana
PERI Working Papers
This paper examines the question of whether inflation targeting monetary policy is an appropriate framework for sub-Saharan African countries. The paper presents an overview of inflation targeting, reviews the justification for the regime, and summarizes some major critiques. Monetary policy responses to inflation depend on the source of inflationary pressures. Therefore, the determinants of inflation in African countries are investigated, using dynamic panel data, and the implications for inflation targeting are discussed. These issues are examined in greater detail for the two African countries which have formally adopted inflation targeting, South Africa and Ghana. The analysis is placed in the …
Setting An Agenda For Monetary Reform, Jane D’Arista
Setting An Agenda For Monetary Reform, Jane D’Arista
PERI Working Papers
The role played by monetary policy in creating the conditions that culminated in the current crisis and the failure of the Fed’s efforts to end the credit freeze in 2008 are critical components of the analysis needed as a backdrop for reform. This paper argues that the link between excess liquidity, the buildup in debt, the asset bubbles that debt created and the financial crisis that followed are outcomes of monetary as well as regulatory policy failures; that they reflect a substantial weakening in the Fed’s ability to implement countercyclical initiatives. It argues that the effectiveness of monetary policy can …
The Implications Of Aging For The Structure And Stability Of Financial Markets, Jane D’Arista
The Implications Of Aging For The Structure And Stability Of Financial Markets, Jane D’Arista
PERI Working Papers
Aging populations have altered saving and investment patterns in many developed and emerging market economies. The structural changes that have occurred have important implications for financial stability and for the conduct of monetary policy. As assets and borrowing shifted from banks to pension funds and other institutional investors, the market-based systems that replaced bank-based systems became more procyclical and more vulnerable to systemic risk. In addition, banks’ receding share of financial assets undermined their role in channeling monetary policy initiatives and thus eroded central banks’ ability to counter excessive credit growth and contraction, defuse asset bubbles and act as effective …
Inflation And Economic Growth: A Cross-Country Non-Linear Analysis, Robert Pollin, Andong Zhu
Inflation And Economic Growth: A Cross-Country Non-Linear Analysis, Robert Pollin, Andong Zhu
PERI Working Papers
This paper presents new non-linear regression estimates of the relationship between inflation and economic growth for 80 countries over the period 1961 – 2000. We perform tests using the full sample of countries as well as sub-samples consisting of OECD countries, middle-income countries, and low-income countries. We also consider the full sample of countries within the four separate decades between 1961 – 2000. Considering our full data set we consistently find that higher inflation is associated with moderate gains in GDP growth up to a roughly 15 – 18 percent inflation threshold. However, the findings diverge when we divide our …