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Full-Text Articles in Economics

The Recent Growth Of International Reserves In Developing Economies: A Monetary Perspective, Gonçalo Pina Sep 2015

The Recent Growth Of International Reserves In Developing Economies: A Monetary Perspective, Gonçalo Pina

Economics

The massive accumulation of international reserves in developing economies is a puzzling recent development in the world economy. This paper studies reserve accumulation as the outcome of a simple model in which the central bank smooths inflation. I explore the view that central banks accumulate reserves to face large fiscal shocks that need monetary financing. Central bank revenues are obtained through inflation, but inflation is distortionary. As a result, the central bank optimally accumulates international reserves in order to spread the costs associated with inflation over time. A simple numerical exercise for an average developing economy using data between 1970 …

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Effects Of Monetary Policy On The Banking System Stability In Nigeria, A. Bamidele, J. Musa, L. Bala-Keffi, O. Owolabi, S. Imam Jun 2015

Effects Of Monetary Policy On The Banking System Stability In Nigeria, A. Bamidele, J. Musa, L. Bala-Keffi, O. Owolabi, S. Imam

Economic and Financial Review

The paper examined the effect of monetary policy on banking system stability in Nigeria. The main objective was to evaluate how monetary policy affected the banking system stability during the global financial crisis in Nigeria. Static and dynamic error correction models were estimated using monthly data from January 2007 to June 2013 and the error correction model was found most efficient. The banking system stability index was computed using banking soundness index, banking vulnerability index and economic climate index. The results showed that increase in monetary policy rate, depreciation of nominal exchange rate and rising inflation rate negatively affected the …

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An Empirical Analysis Of The Effect Of Monetary Policy On The Manufacturing Sector In Nigeria, M. Ali, H. Aliero, M. Abubakar Jun 2015

An Empirical Analysis Of The Effect Of Monetary Policy On The Manufacturing Sector In Nigeria, M. Ali, H. Aliero, M. Abubakar

Economic and Financial Review

This study examined the effect of monetary policy on the manufacturing sector in Nigeria from 1970 to 2012 using Autoregressive Distributed Lag (ARDL) bound testing approach. Exchange rate was found as the only channel of monetary policy transmission with significantly negative effect on the manufacturing sector. This implies that manufacturing firms largely rely on foreign inputs for production and do not depend on the banking system for funding. The study, therefore, recommends indigenous technology and financial system development to reduce dependence on imported inputs and facilitate access to more funds.

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The Effects Of Quantitative Easing In The United States: Implications For Future Central Bank Policy Makers, Matthew Q. Rubino May 2015

The Effects Of Quantitative Easing In The United States: Implications For Future Central Bank Policy Makers, Matthew Q. Rubino

Senior Honors Projects, 2010-2019

The purpose of this thesis is to examine the effects of the Federal Reserve’s recent bond buying programs, specifically Quantitative Easing 1, Quantitative Easing 2, Operation Twist (or the Fed’s Maturity Extension Program), and Quantitative Easing 3. In this study, I provide a picture of the economic landscape leading up to the deployment of the programs, an overview of quantitative easing including each program’s respective objectives, and how and why the Fed decided to implement the programs. Using empirical analysis, I measure each program’s effectiveness by applying four models including a yield curve model, an inflation model, a money supply …

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Interest Rate Elasticity Of Private Sector Credit In Nigeria, A. Bamidele, K. O. Oji, E. S. Smith, L. S. Jimoh Mar 2015

Interest Rate Elasticity Of Private Sector Credit In Nigeria, A. Bamidele, K. O. Oji, E. S. Smith, L. S. Jimoh

Economic and Financial Review

This study estimated the interest rate elasticity of private sector credit in Nigeria using the Vector Error Correction mechanism. The variables specified included real private sector credit. real GDP. Prime and maximum lending rates, exchange rate, 9)-day Treasury bill rate, inflation rate and all share index of the Nigerian Stock Exchange. The data utilised covered the period: 1998 Q1 to 2013 Q4. Granger causality tests were performed, and the co-integration analysis of the Johansen system-wide procedure was employed. The results indicated thot private sector credit was fairly interest inelastic in terms of both maximum and prime lending rates. The estimated …

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Monetary Policy And Asset Prices In Nigeria, M.K. Tule, P. Ogiji, G. Okorie, D. Mbaka Mar 2015

Monetary Policy And Asset Prices In Nigeria, M.K. Tule, P. Ogiji, G. Okorie, D. Mbaka

Economic and Financial Review

This paper attempts to contribute to the debate on the linkages between monetary policy and asset prices in the woke of the recent global financial crisis. The study employs vector error correction (VEC) mode! on Nigerian weekly data from January 2007 to October 2013. A pair-wise granger causality test indicated a unidirectional causality from asset prices to monetary policy. Exchange rate at lag one was negatively related to the All Share Index. suggesting that exchange rate appreciation is likely to lead to excessive appreciation in asset prices. The results further indicated a positive relationship between financial system stability and asset …

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2015-1 The Interactive Evolution Of Economic Ideas And Experience - The Case Of Canadian Inflation Targeting, David Laidler Jan 2015

2015-1 The Interactive Evolution Of Economic Ideas And Experience - The Case Of Canadian Inflation Targeting, David Laidler

Economic Policy Research Institute. EPRI Working Papers

No abstract provided.

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Health Care Inflation And It's Implications For Monetary Policy, Takeshi Yagihashi, Juan Du Jan 2015

Health Care Inflation And It's Implications For Monetary Policy, Takeshi Yagihashi, Juan Du

Economics Faculty Publications

Motivated by recent findings on the cyclical movement of both health and health spending, we construct a general equilibrium model that distinguishes health care demand from the demand for other goods. Using this model, we are able to generate inflation dynamics and cyclicality of health that match the US data. When the model is subjected to an expansionary monetary policy shock, it yields different output and inflation responses compared with a two-sector model with homogeneous demand. We show that the trade-off between leisure and health spending plays an important role in model dynamics. The model further predicts different degrees of …

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Cyclical Public Policy And Financial Factors, Vishrut Dhirendra Rana Jan 2015

Cyclical Public Policy And Financial Factors, Vishrut Dhirendra Rana

Dissertations and Theses Collection (Open Access)

The Great Recession of 2009 motivated a growing body of research on the quantitative modeling of financial factors and appropriate policy responses. This dissertation is a part of that line of research and looks at the quantitative macroeconomic effects of financial factors on business cycles. The dissertation uses quantitative macroeconomic general equilibrium models (popular dynamic stochastic general equilibrium (DSGE)) that allow flexibility in micro-founded modeling of macroeconomic environments. The dissertation captures financial factors through explicit modeling of financial intermediation, featuring costly state verification and collateral constraints as financial frictions. The first chapter offers a new quantitative model of credit cycles …

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What Lies At The Core Of Core Inflation? An Empirical Analysis To Identify The Determinants Of Core Inflation In Pakistan, Mehwish Ghulam Ali, Muhammad Ather Elahi, Qazi Masood Ahmed Jan 2015

What Lies At The Core Of Core Inflation? An Empirical Analysis To Identify The Determinants Of Core Inflation In Pakistan, Mehwish Ghulam Ali, Muhammad Ather Elahi, Qazi Masood Ahmed

Business Review

Core inflation leads to erosion of purchasing power and distorts income distribution in favor of the rich and the creditors. Further, it aggravates poverty due to its regressive effect. By targeting core inflation, the Central Bank attempts to reduce poverty and improve income distribution. The Central Bank does and should target core inflation for the aforementioned objectives, hence it becomes necessary to identify if factors apart from monetary policy affect core inflation. This paper aims to identify the determinants of core inflation in Pakistan. This study is motivated by the lack of work done in identifying the determinants of core …

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Macroeconomic Trillema And Monetary Policy In Nigeria, Moses K. Tule Dec 2014

Macroeconomic Trillema And Monetary Policy In Nigeria, Moses K. Tule

Bullion

The paper explores how the macroeconomic trilemma influences monetary Policy choices and action in practical terms. Section 1 is the introduction, section 2 examines in greater details key conceptual issues. After it a review of the historical epochs of the trilemma, followed by contemporary country experiences in managing the trilemma. Section five examines the challenges of the trilemma in Nigeria while the last section concludes the paper.

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Empirical Exposition Of Monetary Policy Under Fixed And Managed Float Exchange Rate Regime: Any Lesson For Nigeria, F.O. Egwaikhide, M. Oyinlola, O. Adeniyi, D. B. Olanipekun Dec 2014

Empirical Exposition Of Monetary Policy Under Fixed And Managed Float Exchange Rate Regime: Any Lesson For Nigeria, F.O. Egwaikhide, M. Oyinlola, O. Adeniyi, D. B. Olanipekun

Economic and Financial Review

The paper empirically investigated the relationship between monetary aggregates and the exchange rate under alternative exchange rate regimes in Nigeria. Using data spanning 1961 to 2013 to estimate vector auto-regressive (VAR) models, a number of findings ensued.

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Wage Subsidies As A Tool To Fight Recessions, Hian Teck Hoon Oct 2014

Wage Subsidies As A Tool To Fight Recessions, Hian Teck Hoon

Research Collection School Of Economics

Since 1981, MAS has used the exchange rate as the primary tool of macroeconomic stabilisation. An exchange rate-based policy rule not only describes very well Singapore’s actual conduct of monetary policy but it has also delivered reduced volatility in inflation and output. Yet, as the quotation above suggests, during the onslaught of the contagion effects arising from the 1997–98 Asian Financial Crisis when Singapore’s export demand declined precipitously, threatening a rise in the unemployment rate, exchange rate adjustment did not act alone to counteract the decline in aggregate demand (AD). Instead, the committee set up by then - Prime Minister …

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Analysis Of Monetary Policy Decision Making Among Heterogeneous Monetary Policy Committee (Mpc) Members At The Central Bank Of Nigeria, C. C. Ezema, O. J. Odonye, T. S. Shitile, O. O. Afiemo Sep 2014

Analysis Of Monetary Policy Decision Making Among Heterogeneous Monetary Policy Committee (Mpc) Members At The Central Bank Of Nigeria, C. C. Ezema, O. J. Odonye, T. S. Shitile, O. O. Afiemo

Economic and Financial Review

This paper provided an empirical analysis of policy-makers' voting patterns on interest rates in Nigeria. Employing a (pooled) Taylor rule and using real-time data obtained from published personal statements of monetary policy committee members at the Central Bank of Nigeria (CBN), the paper tests for preference heterogeneity among MPC members. The aggregate reaction function as well as individual reaction functions for MPC members were used to tests whether there is a difference between the voting patterns of internal members and that of external members of the committee. Our results suggest evidence of heterogeneity among MPC members and that the voting …

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The More Divergent, The Better? Lessons On Trilemma Policies And Crises For Asia, Joshua Aizenman, Hiro Ito Sep 2014

The More Divergent, The Better? Lessons On Trilemma Policies And Crises For Asia, Joshua Aizenman, Hiro Ito

Economics Faculty Publications and Presentations

This paper investigates the potential impacts of the degree of divergence in open macroeconomic policies in the context of the trilemma hypothesis. Using an index that measures the extent of policy divergence among the three trilemma policy choices—monetary independence, exchange rate stability, and financial openness—we find that emerging market economies have adopted trilemma policy combinations with the smallest degree of policy divergence in the last 15 years. We then investigate whether and to what extent the degree of open macro policy convergence affects the probability of a crisis and find that a developing or emerging market economy with a higher …

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Monetary-Fiscal Policy Interaction: An Empirical Analysis In Egypt, Sahar M. Abdel-Haleim, Mohamed Hassan, Lobna M. Abdel-Latif Aug 2014

Monetary-Fiscal Policy Interaction: An Empirical Analysis In Egypt, Sahar M. Abdel-Haleim, Mohamed Hassan, Lobna M. Abdel-Latif

Business Administration

This paper examines the effect of the developments introduced since 2003 in Egypt on the nature of interaction of monetary and fiscal policies and the achievement of macroeconomic objectives. Utilizing the Structural Vector Autoregression (SVAR) approach, the dynamic interaction of policies and their effects on macroeconomic aggregates are investigated. The findings support the success of the developments in eliminating the fiscal dominance. However, coordination between policies is still weak to achieve the macroeconomic stabilization objectives. The results also prove the conventional Keynesian effect of fiscal policy on real GDP. However, the fiscal multiplier is very small. Likewise, expansionary monetary policy …

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International Reserves Before And After The Global Crisis: Is There No End To Hoarding?, Joshua Aizenman, Yin-Wong Cheung, Hiro Ito Aug 2014

International Reserves Before And After The Global Crisis: Is There No End To Hoarding?, Joshua Aizenman, Yin-Wong Cheung, Hiro Ito

Economics Faculty Publications and Presentations

We evaluate the global financial crisis (GFC) and the structural changes of recent years that have been associated with new patterns of hoarding international reserves. We confirm that the determining factors of international reserves are evolving with developments in the global economy. From 1999–2006, the pre-GFC period, gross saving is associated with higher international reserves in developing and emerging markets. An outward direct-investment effect is consistent with the view of diverting international assets from the international reserve account, the “Joneses’ effect” lends support to the rivalry hoarding motivation, and commodity price volatility induces hoarding against uncertainty. During the 2007–2009 GFC, …

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Effect Of Monetary Policy On Agricultural Sector In Nigeria, Elias A. Udeaja, Udoh A. Elijah Jun 2014

Effect Of Monetary Policy On Agricultural Sector In Nigeria, Elias A. Udeaja, Udoh A. Elijah

Economic and Financial Review

The study examinee the effect of monetary policy on agricultural sector in Nigeria, utilizing time series data for the periods spanning from 1970 to 2010. The study captures both monetary and non-monetary policy variables such as lending rate, commercial banks credit to agriculture, exchange rate, government expenditure in agriculture and inflation rate in examining the effect of monetary policy on agricultural output. The methodology adopted is the Auto- Regressive Distributed Lag (ARDL) Bound Testing Approach. The results obtained shows that exchange rate and government expenditure had positive and significant effect on agricultural output and, hence agricultural sector in Nigeria. It …

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An Examination Of The Structural Inflation Dynamics In Nigeria, O. J. Odonye, S. O. Odeniran, A. O. Oduyemi, O. J. Olaoye, K. J. Ajayi Mar 2014

An Examination Of The Structural Inflation Dynamics In Nigeria, O. J. Odonye, S. O. Odeniran, A. O. Oduyemi, O. J. Olaoye, K. J. Ajayi

Economic and Financial Review

This study examines the dynamics of inflation in Nigeria, including the structural evolution as well as the direction of its movement with a view to designing appropriate policy measures to rein in the inflationary pressures. The study utilized quarterly data from 1970(1) to 2013 (4) except for Bureau de Change (BDC) premium where the duration was 1991(1) to 2013 (4) based on Auto Regressive Distributed Lag (ARDL) model. The results show that structural factors like budget deficit, rainfall, variation in export, exchange rate premium have profound influence on movement in CPI in Nigeria during the period.

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An Econometric Analysis Of The Effect Of Monetary Policy On Output, Michael Gould, Dr. David E. Spencer Jan 2014

An Econometric Analysis Of The Effect Of Monetary Policy On Output, Michael Gould, Dr. David E. Spencer

Journal of Undergraduate Research

In December 1996, Federal Reserve Chairman Alan Greenspan spoke of “irrational exuberance” fueling investment spending to unsustainable levels.1 The pressure of the investment bubble and an extraordinarily tight labor market required the Fed to intervene to combat inflationary pressures which could have destabilized our economy.

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Central Bank Of Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December 2014, Central Bank Of Nigeria Jan 2014

Central Bank Of Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December 2014, Central Bank Of Nigeria

CBN Annual Report

Annual Report and Financial Statements of the Central Bank of Nigeria (CBN) for the year ended 31st December, 2014. In general, 2014 has been a very eventful and challenging year for the Bank, the country, and the world at large. In the course of the year, the Bank underwent significant changes in its governance composition. In 2014, the global economy witnessed considerable vulnerabilities characterized by fragile growth and weak economic outlook. Global growth recovery was modest and continued to be threatened by strong downside risks, as a result of sharp drop in commodity prices, escalating geo-political tensions, and heightening threats …

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An Analysis Of The Appreciation Of The Chinese Currency And Influences On China's Economy, Lina Ma Jan 2014

An Analysis Of The Appreciation Of The Chinese Currency And Influences On China's Economy, Lina Ma

Electronic Theses and Dissertations

In recent years, China's economy development has had more and more impact on the global economy. The Chinese currency continued to appreciate since 2005, which has had both positive and negative results on Chinese's economy. The Chinese government uses the monetary policy to control the inflation pressure, which could work counter to Chinese exchange rate policy. RMB appreciation also has some effects on the Chinese banking system. Through the Global Trade Analysis Project (GTAP), a global computable general equilibrium model, we analyze how, when there is RMB appreciation, the Chinese exports and imports, and Chinese employment and income inequality react. …

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Speculative Tech: The Bitcoin Legal Quagmire & The Need For Legal Innovation, Paul H. Farmer Jr. Jan 2014

Speculative Tech: The Bitcoin Legal Quagmire & The Need For Legal Innovation, Paul H. Farmer Jr.

Journal of Business & Technology Law

No abstract provided.

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Heterogeneity In Housing : Evidence From Regional Prices, Monetary Policy Transmission And Wealth Distribution In China, Lili Wu Jan 2014

Heterogeneity In Housing : Evidence From Regional Prices, Monetary Policy Transmission And Wealth Distribution In China, Lili Wu

Legacy Theses & Dissertations (2009 - 2024)

Housing market displays a high degree of heterogeneity in China: house prices show great uneven patterns across regions; housing markets present remarkably various roles in trasmitting outside shocks to real economies; housing wealth exhibits obviously asymmetric profile in holding and distribution among households, etc. To investige these heterogeneities is the single purpose of this paper.

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An Analysis Of The Structure And Dynamics Of The Philippine Macroeconomy: Results From A Dsge-Based Estimation, Ruperto P. Majuca Jan 2014

An Analysis Of The Structure And Dynamics Of The Philippine Macroeconomy: Results From A Dsge-Based Estimation, Ruperto P. Majuca

DLSU Business & Economics Review

I use Bayesian methods to estimate a medium-scale closed economy dynamic stochastic general equilibrium (DSGE) model for the Philippine economy. Bayesian model selection techniques indicate that among the frictions introduced in the model, the investment adjustment costs, habit formation, and the price and wage rigidity features are important in capturing the dynamics of the data, while the variable capital utilization, fixed costs, and the price and wage indexation features are not important. I find that the Philippine macroeconomy is characterized by more instability than the U.S. economy. An analysis of the several subperiods in Philippine economic history also reveals some …

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Two Essays On Attracting Foreign Direct Investment: From Both A National And Firm Level Perspective, Ryan Lawrence Mason Jan 2014

Two Essays On Attracting Foreign Direct Investment: From Both A National And Firm Level Perspective, Ryan Lawrence Mason

Theses and Dissertations in Business Administration

Countless studies with a wide variety of financial and economic indicators have been conducted over the years within the context of international business research, all searching for hints or signals as to what makes the never ending process of globalization progress. Our research follows these efforts while focusing specifically on Foreign Direct Investment (FDI). Our first study sets out to empirically test if nations adopting the inflation targeting (IT) monetary policy are more successful in attracting inbound and outbound FDI cash flows than those nations utilizing alternative monetary policies. IT is a relatively new policy which was first put into …

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Inflation Targeting And Growth: The Role Of The Tradable Sector, Luis Monroy Gómez Franco May 2013

Inflation Targeting And Growth: The Role Of The Tradable Sector, Luis Monroy Gómez Franco

Undergraduate Economic Review

This paper provides an analytical explanation to the empirical association between monetary policy conducted according to the inflation targeting (IT) framework and the appreciation of the exchange rate, relating it to the literature on the effects of the exchange rate on growth. A two sector small open economy model is developed in which the behavior of the non tradable inflation and the nominal exchange rate are analyzed. The results indicate that the response to inflation variance under the IT regime causes the appreciation trend. Since this trend is not reversed immediately, increasing returns in the tradable sector affect capital accumulation.

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How Would Non-Interest Banking Affect The Effectiveness Of Monetary Policy In Nigeria, Yusuf Adamu Mar 2013

How Would Non-Interest Banking Affect The Effectiveness Of Monetary Policy In Nigeria, Yusuf Adamu

Bullion

This article espouses the effectiveness of monetary policy in a dual economic framework (interest bearing/non-interest bearing). In other words it examines how the element non-interest banking when combined with interest bearing framework affect the effectiveness of monetary policy. The use of interest based instruments can effectively be combined with the identified non-interest interest instrument to conduct monetary policy. This article recommend that Nigeria should start thinking towards a policy that takes into account the monetary aggregate instruments as the main tool for executing monetary policy.

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2013-4 Three Revolutions In Macroeconomics: Their Nature And Influence, David Laidler Jan 2013

2013-4 Three Revolutions In Macroeconomics: Their Nature And Influence, David Laidler

Economic Policy Research Institute. EPRI Working Papers

No abstract provided.

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2013-2 The Fisher Relation In The Great Depression And The Great Recession, David Laidler Jan 2013

2013-2 The Fisher Relation In The Great Depression And The Great Recession, David Laidler

Economic Policy Research Institute. EPRI Working Papers

No abstract provided.

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