The Modern Monetary System and Gold

Directory of Open Access Journals (Sweden)

N N Rubtsov

2013-12-01

Full Text Available The article considers the nature of modern money, analyzes the mechanism of its creation, showing that it is basically generated by credit and the principle of partial bank reserve. The article draws comparative parallels between trade money based on gold and contemporary, credit money; the author quotes leading bankers and finance experts on the need for partial return to the principles of functioning of the gold standard as the most effective institute of regulating the monetary system in society.

Brain reward system's alterations in response to food and monetary stimuli in overweight and obese individuals.

Science.gov (United States)

Verdejo-Román, Juan; Vilar-López, Raquel; Navas, Juan F; Soriano-Mas, Carles; Verdejo-García, Antonio

2017-02-01

The brain's reward system is crucial to understand obesity in modern society, as increased neural responsivity to reward can fuel the unhealthy food choices that are driving the growing obesity epidemic. Brain's reward system responsivity to food and monetary rewards in individuals with excessive weight (overweight and obese) versus normal weight controls, along with the relationship between this responsivity and body mass index (BMI) were tested. The sample comprised 21 adults with obesity (BMI > 30), 21 with overweight (BMI between 25 and 30), and 39 with normal weight (BMI food (Willing to Pay) and monetary rewards (Monetary Incentive Delay). Neural activations within the brain reward system were compared across the three groups. Curve fit analyses were conducted to establish the association between BMI and brain reward system's response. Individuals with obesity had greater food-evoked responsivity in the dorsal and ventral striatum compared with overweight and normal weight groups. There was an inverted U-shape association between BMI and monetary-evoked responsivity in the ventral striatum, medial frontal cortex, and amygdala; that is, individuals with BMIs between 27 and 32 had greater responsivity to monetary stimuli. Obesity is associated with greater food-evoked responsivity in the ventral and dorsal striatum, and overweight is associated with greater monetary-evoked responsivity in the ventral striatum, the amygdala, and the medial frontal cortex. Findings suggest differential reactivity of the brain's reward system to food versus monetary rewards in obesity and overweight. Hum Brain Mapp 38:666-677, 2017. © 2016 Wiley Periodicals, Inc. © 2016 Wiley Periodicals, Inc.

Monetary management in a monetary union

DEFF Research Database (Denmark)

Thygesen, Niels

1991-01-01

The design and implementation of monetary policy in the EMU raises a number of difficult conceptual issues, though less complex than those of the transition. The Delors Report (1989) addressed three issues, in particular: (1) the appropriate mandate for the European system of Central Banks (ESCB)......, and on the desirable degree of decentralization within the ESCB of operational and supervisory authority. Some preliminary reflections on these issues are found in the final section......The design and implementation of monetary policy in the EMU raises a number of difficult conceptual issues, though less complex than those of the transition. The Delors Report (1989) addressed three issues, in particular: (1) the appropriate mandate for the European system of Central Banks (ESCB......): (2) the relationship of the ESCB to national and EEC political authorities, and (3) the accountability of the ESCB for its implementation of its mandate. The paper pays special attention to the interaction of these three issues. The Delors Report was less specific on the desing of instruments...

Monetary Policy Analysis in Serbia

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Martin Vesna

2015-09-01

Full Text Available The paper focuses on analysing monetary policy in Serbia. The National Bank of Serbia chose inflation targeting, which sets price stability as the main objective of monetary policy. To achieve this goal, the central bank uses different monetary policy instruments which analysis can provide us with the understanding of the main directions of their actions but also of the limitations of its application. Only through improvement of both instruments and monetary policy the central bank will create a better foundation for achieving monetary stability. In addition, the implementation of exchange rate policy is entrusted to the National Bank of Serbia, as the main regulator of the financial system. A mere use of managed floating exchange rate, as the chosen exchange rate regime, is an appropriate solution in the current economic circumstances and in accordance with the desired objective of monetary policy.

Monetary Cooperation in East Asia: Major Issues and Future Prospects

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Jai-Won Ryou

2004-06-01

Full Text Available The Asian currency crisis in 1997 and the launch of the euro in 1999 made the possibility and desirability of introducing a regional currency union in East Asia a point of debate. At present, the empirical findings and policy implications of previous studies are mixed. We are still in need of theoretical and empirical studies that capture the salient features of East Asia, and give us reliable recommendations for incentive structures, configurations and policy instruments in monetary cooperation in its various stages. This paper aims to review major conceptual and empirical issues relevant to monetary cooperation in East Asia, including proposals for a regional cooperative framework for exchange rate stability or forming a currency union in the region. East Asian countries have no experience with any type of monetary cooperation and all we have are hypothetical predictions. Nevertheless, East Asian countries may be on the brink of an historical evolution to economic and monetary integration, as Europe was half a century ago. The progressive integration of markets in East Asia has conferred a commonality of economic interest upon the countries in the region. As the economic structures of East Asian countries converge with one another through closer ties of trade, investment and finance, the necessity for monetary cooperation will be more likely to emerge in the future. Monetary cooperation in East Asia will be a long process. East Asian countries should make efforts to build collective institutions in the beginning.

Incentives in Agency Relationships: To Be Monetary or Non-Monetary?

OpenAIRE

Patricia Crifo; Marc-Arthur Diaye

2004-01-01

In this paper, we develop a Principal-Agent model with both monetary and non-monetary incentives. We show that the latter are always more efficient, that is Pareto-dominate, monetary incentives. Indeed, we not only show that all what monetary incentives can do, non-monetary incentives can do it as well, we go further and show the possibility for non-monetary incentives to increase intrinsic motivation, thereby compensating the fact that higher rewards, rather than being encouraging can reduce...

Monetary Policy of the Federal Reserve System from the Perspective of Exit Strategies

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Aleksandra Nocoń

2015-07-01

Full Text Available Central banks, after the experience of the global financial crisis, are now starting the implementation of the exit strategies, which are the process of normalization of monetary policy. The pace of monetary policy normalization process depends on the market reaction to central bank's decisions and macroeconomic conditions, in which they will be implemented. The main aim of the study is to present the principles of the exit strategy of the Federal Reserve System (Fed, on the background of the changes that have occurred in the United States within the monetary policy during the global financial crisis.

Convergent systems vs. incremental stability

NARCIS (Netherlands)

Rüffer, B.S.; Wouw, van de N.; Mueller, M.

2013-01-01

Two similar stability notions are considered; one is the long established notion of convergent systems, the other is the younger notion of incremental stability. Both notions require that any two solutions of a system converge to each other. Yet these stability concepts are different, in the sense

The Bank Lending Channel of Monetary Policy Transmission in A Dual Banking System

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Mansor H. Ibrahim

2017-02-01

Full Text Available This paper examines the impact of monetary policy on bank lending in a dual banking system, i.e. Malaysia. Making use of an unbalanced panel data set of 38 Islamic and conventional banks covering mostly 2001-2014, we find evidence that variations in monetary policy affect lending growth of Islamic banks and, to some extent, conventional banks. The results further reveal that, in conformity with studies using aggregate Islamic financing data, the Islamic financing growth reacts more strongly to monetary policy changes. Moreover, we find no marked difference between full-fledged Islamic banks and Islamic bank subsidiaries in their responses to monetary policy. While we also document some evidence indicating the significant relations between bank-specific variables and lending growth, the bank-specific variables do not seem to have any role in impacting the potency of the bank lending channel. Finally, we find that lending growth is directly related to economic growth, suggesting procyclicality of bank lending/financing in Malaysia. These results have important implications for effective implementation of monetary policy and further development of Islamic banks in Malaysia.

A Monetary Union in Asia? Some European Lessons

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Wyplosz Charles

2001-12-01

Full Text Available Monetary Union in Europe has been the natural response to the combined desire of stabilizing intra-European exchange rates and of lifting permanently all capital controls. The commitment to stable exchange rate has long been rooted in policymakers’ conviction that trade integration requires precise rules which eliminate the risk of misalignments, whether imposed by the markets or arranged by the authorities. The success in maintaining fixed-but-adjustable exchange rates within the EMS and next in adopting a single currency is largely due to the patient and progressive building institutions that became the uneasy repository of those parts of national sovereignty that have been abandoned. This experience suggests three lessons for current discussions about a monetary union in Asia. First, multilateral regional exchange rate arrangements are more conducive to an effective defense than indirect approaches like basket pegs. They probably require some limits to capital mobility. Second, adopting a single currency necessitates elaborate preparations that can only be underpinned by the gradual build up of collective institutions. Third, a monetary union requires some reasonable degree of real convergence. This implies starting with a core of sufficiently homogeneous countries. At this stage, starting with a monetary union in Asia would imply reversing the European sequencing, which started with a common market, moved on to the EMS, and liberalization of capital movements.

The evolution of Alexandre Lamfalussy's thought on the international and European monetary system (1961-1993)

OpenAIRE

Ivo Maes

2011-01-01

The establishment of the European Monetary Institute (EMI), the predecessor of the European Central Bank, on 1 January 1994, was a milestone in the process of European monetary integration. In this paper, we look at the work on the international and European monetary system of Alexandre Lamfalussy, its first president. Lamfalussy pursued a threefold career: as a private banker, a central banker and an academic. Partly under the influence of Robert Triffin, Lamfalussy soon became interested in...

Principles of functioning of the transmission mechanism of the monetary system in international business

Directory of Open Access Journals (Sweden)

Poliakova Iana O.

2014-01-01

Full Text Available Modern international economic relations are characterised with reduction of rates of economic growth of the majority of developed economic systems, gradual oligopolisation of international markets, domination of private investors interests in political relations, growth of intensity and frequency of local, regional and international economic crises, which negatively influences the tendencies of formation of main directions of transmission and use of capital. Consideration of theoretical grounds of functioning of the monetary mechanism and content analysis of the international statistical information for a long period of time allow marking out certain principles of restoration of integrity of the transmission mechanism of the monetary system as basic ones. Introduction of the proposed principles into the mechanism of functioning of the international monetary system would allow increase of the rates of growth of production of the developed economic systems, strengthening of stability of functioning of the developing economies and decrease of interdependence of different participants of international economic relations, which would directly influence improvement of macro-economic indicators.

RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY

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Camelia MILEA

2013-09-01

Full Text Available Starting from the definition according to which monetary stability requires an appropriate level of liquidity in an economy with dynamic objectives, of growth and job creation, non-inflationary in terms of price stability, based on the analysis of the effects of some relevant economic phenomena and on the economic literature, in this article, the author has highlighted some of the risks to monetary stability. One of the major risks is represented by the loss of its instruments, i.e. the instruments for liquidity management, through monetary and exchange rate policies. Another important risk is represented by the capital fluctuation due to various shocks: exchange rate, political, financial and capital account liberalization. Also, as a result of the analysis of relevant studies and of the effects of the European integration in terms of monetary stability, the author has shown the elements on which depends monetary stability. Among these, there are: the existence of an institutional framework with a clear goal and a proper degree of responsibility, strong operational independence of monetary policy, monetary policy implementation with a view to ensuring an appropriate balance between discipline and discretion, the level of the interest rate of monetary policy, the efficiency of the transmission mechanism of monetary policy, the existence of a viable and stable financial system, the existence of enough instruments at hand for the central bank, the structure and soundness of the financial and banking system. The paper is a capitalization of the research project “Global Risks for the Financial and Monetary Stability. Implications for Romania and European Union” elaborated in 2013, at “Victor Slăvescu” Centre for Financial and Monetary Research.

The rising of the Phoenix : building the European Monetary System on a meeting of minds

NARCIS (Netherlands)

van Esch, F.A.W.J.|info:eu-repo/dai/nl/169008436

2009-01-01

Decades later, the sudden and swift establishment of the European Monetary System (EMS) within the context of the 1970s economic downturn and Euro-sclerosis remains a strikingly remarkable achievement. This article argues that this unexpected leap forward in the European economic and monetary

International Monetary Power and China’s Response

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Hongyu Lin

2013-12-01

Full Text Available International monetary power has become a new area of interest since the outbreak of the global financial crisis in 2008. The USA, the EU and China will pursue global monetary power in the future, and the USD, the EURO and the RMB will become the most important world reserve currencies. The pattern of international monetary power will shift from a unilateral-hegemony structure to a triangle-balance structure. This shift has a very strong influence on changes in the current international political system. As the largest emerging economy, China will speed up the globalization of the RMB to meet the challenges of the international monetary system.

MONETARY POLICY AND ECONOMIC DEVELOPMENT: LESSONS ...

African Journals Online (AJOL)

promote monetary stability and a sound financial system in Nigeria under the overall ... default in the money market and, (iv) Excessive borrowing for speculative ..... Crookett, A. (1979): Monetary Theory, Policy and Institutions, Thomas Nelson ...

MODERN APPROACHES TO THE IMPLEMENTATION OF MONETARY POLICY AND THE REGULATION OF FINANCIAL SYSTEMS

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Radu CUHAL

2013-01-01

Full Text Available This study determines the modern approaches to the implementation of monetary policy and regulation of financial systems. Set of measures to prevent and overcome the financial crisis is grounded taking into consideration different areas of research and the IMF. New tasks of monetary policy in central banks are specified and they are intended to ensure the financial stability of the state (within the common fiscal policy. The main directions of elaboration and implementation of new monetary policy mechanism, which is intended to ensure the effective solution of problems in macro prudential supervision and financial stability, are examined.

Modern approaches to the implementation of monetary policy and the regulation of financial systems

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Basistîi Nicolae

2013-01-01

Full Text Available This study determines the modern approaches to the implementation of monetary policy and regulation of financial systems. Set of measures to prevent and overcome the financial crisis is grounded taking into consideration different areas of research and the IMF.New tasks of monetary policy in central banks are specified and they are intended to ensure the financial stability of the state (within the common fiscal policy.The main directions of elaboration and implementation of new monetary policy mechanism, which is intended to ensure the effective solution of problems in macro prudential supervision and financial stability, are examined.

Monetary Policy and Financial (InStability

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Adam Koronowski

2010-06-01

Full Text Available This paper presents how monetary policy, restricted only by price stability, may easily become propitious to asset inflation and – eventually – to a financial crisis. This risk is particularly high when the financial system lacks proper regulation and effective supervision. Hasty liberalization, negligence of official oversight and „Greenspan doctrine” which refuted any activist policy promoting financial stability characterized Fed’s monetary policy under the former Fed’s governor. The paper also analyses another aspect of the linkages between monetary policy and financial crises – monetary policy reaction to financial crises. It is not surprising that it consists of cutting interest rates and bail-out of insolvent, systemically important financial institutions. Such policy, especially when run too long and changed too abruptly, not only creates moral hazards but it also sets the stage for another „search for yield” and build-up of another speculative bubble. As a result, monetary policy becomes asymmetric and pro-cyclical. Fed’s reaction to the recent crisis seems to be very much in line with this pattern typical of Fed’s policy in the past. However, this time the scale of flooding the economy with liquidity and – as a consequence – the risks of future major imbalances in the financial system are unprecedented. A general conclusion of the paper says that there can’t be a sound financial and economic system unless money itself is a scarce resource. However trivial this statement is, monetary policy of some central banks seems to miss the point.

The Latin Monetary Union: Some evidence on Europe's failed common currency

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Kee-Hong Bae

2011-04-01

Full Text Available The Latin Monetary Union was initiated in 1865 by France, Belgium, Italy, and Switzerland. We find that LMU membership or adoption of a gold standard is frequently associated with lower volatility of private bill yields, bond yields, inflation, and deviations from Purchasing Power Parity. However, neither standard induces convergence with LMU leader France or gold standard leader Great Britain. Bond yield spreads indicate that adoption of the gold standard is more credible than membership of the LMU. Italy is an outlier, perhaps due to errant fiscal and monetary policies. A comparison to data from the modern EMS/EMU confirms that the LMU was a weaker and less credible currency arrangement.

The EU's Convergence Dilemma

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Notermans Ton

2015-02-01

Full Text Available As economic stagnation continues to mark the EU in the fifth year of the euro zone crisis, political support for integration is waning. The European Parliament elections of 2014 returned a hitherto unparalleled number of Eurosceptic MEPs, with EU-critical parties becoming the largest ones in several Member States. Much of this Euroscepticism is driven by economic polarisation between core and peripheral countries. While an increasing number of voters in the northwestern creditor countries resent having to foot the bill for what they consider economic mismanagement in the periphery, voters in peripheral countries increasingly rebel against what they deem to be an economically catastrophic Diktat from Germany and its allies. Continued political support for European integration will hinge on successful income convergence in the EU but the current dilemma is that such policies might not be politically feasible. Periods of rapid convergence would seem to suggest that success depends on two main policy strategies. First, a monetary policy that promotes credit for productive purposes, leaves inflation control to other instruments, and employs selective credit rationing to prevent asset booms. Second, a vertical industrial policy prioritising selected industrial sectors. The first policy conflicts with the present framework of euro zone monetary policy, but that framework was only installed in the first place because many peripheral countries were desperately in search of an external constraint on domestic distributional conflict. Industrial policies, in turn, require a sufficient degree of state autonomy from business elites in order to be effective, but it is highly questionable whether most states in the EU possess such autonomy. Though there are, as yet hesitant, signs of a reorientation of both monetary and cohesion policy in the EU, the question of the institutional and political preconditions for their successful implementation has been largely

Frequency response functions for nonlinear convergent systems

NARCIS (Netherlands)

Pavlov, A.V.; Wouw, van de N.; Nijmeijer, H.

2007-01-01

Convergent systems constitute a practically important class of nonlinear systems that extends the class of asymptotically stable linear time-invariant systems. In this note, we extend frequency response functions defined for linear systems to nonlinear convergent systems. Such nonlinear frequency

Impact of monetary policy changes on the Chinese monetary and stock markets

Science.gov (United States)

Tang, Yong; Luo, Yong; Xiong, Jie; Zhao, Fei; Zhang, Yi-Cheng

2013-10-01

The impact of monetary policy changes on the monetary market and stock market in China is investigated in this study. The changes of two major monetary policies, the interest rate and required reserve ratio, are analyzed in a study period covering seven years on the interbank monetary market and Shanghai stock market. We find that the monetary market is related to the macro economy trend and we also find that the monetary change surprises both of lowering and raising bring significant impacts to the two markets and the two markets respond to the changes differently. The results suggest that the impact of fluctuations is much larger for raising policy changes than lowering changes in the monetary market on policy announcing and effective dates. This is consistent with the “sign effect”, i.e. bad news brings a greater impact than good news. By studying the event window of each policy change, we also find that the “sign effect” still exists before and after each change in the monetary market. A relatively larger fluctuation is observed before the event date, which indicates that the monetary market might have a certain ability to predict a potential monetary change, while it is kept secret by the central bank before official announcement. In the stock market, we investigate how the returns and spreads of the Shanghai stock market index respond to the monetary changes. Evidences suggest the stock market is influenced but in a different way than the monetary market. The climbing of returns after the event dates for the lowering policy agrees with the theory that lowering changes can provide a monetary supply to boost the market and drive the stock returns higher but with a delay of 2 to 3 trading days on average. While in the bear market, the lowering policy brings larger volatility to the market on average than the raising ones. These empirical findings are useful for policymakers to understand how monetary policy changes impact the monetary and stock markets

Monetary Union is the future of EAEU

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Vyacheslav S. Kuznetsov

2015-01-01

Full Text Available The president of Russian Federation V. Putin's Order from the 10th of March 2015 to the Government and Central Bank of Russia to work on the plan of creating Monetary Union of EAEU by the 1st of September cannot be ignored by scientific community's attention of Russia and other Eurasian countries. Strategic goal of this document is pretty clear - to create an island of currency stability in the surrounding of Jamaica's Monetary nonsystem and existing monopolar and assimetric world's dollar order, to minimize the dependency of Eurasian countries on US dollar, to hold its world expansion, to freeze the process of financing of USA imbalances by all countries, to turn back the process of dollarization of Eurasian countries and world's dollarization and relieve the world's community from future financial crises. The world's financial and economic crisis of 2008-2010 has clearly shown that US monetary, credit and banking system has become a permanent source of future turmoil of world's scale. It creates a necessity to activate the process of monetary integration of countries on the regional level and transformation of the modern Jamaica's world's dollar standard into the world's multipolar monetary standard. In this article the author analyses he stages of setting up the Eurasian regional monetary order from the creation of multilateral settlement system using common regional currency unit to the introduction of Eurasian currency system with Eurasian currency unit, which can be transformed in the future into the Eurasian Economic and monetary union with common regional currency (euras, which can restrict the world's monopoly position of the dollar.

MONETARY POLICY SHOCKS AND ISLAMIC BANKS DEPOSITS IN INDONESIAN DUAL BANKING SYSTEM AFTER THE FINANCIAL CRISIS

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Ahmad Affandi

2017-03-01

Full Text Available Use of riba (usury in the economic system remained a key factor that led to financial crisis since theinception of modern economy in the late of 17th century. Implementation of interest based monetary policystipulated rampant speculation as common practices in the global financial sector. Although Islamic bankingwas governed by syariah (Divine Law, which was assumed to be resilient from distress, the volatility ofinterest movement would generally affect Islamic banks operations in a dual banking system. This paperwould look at this issue and would empirically explore the dynamic inter-relationships between deposits ofIslamic banks with monetary policy variables in Indonesia. In terms of market share, as of 2009, Islamicbanking asset in Indonesia was a meager 2%. The industry had been affected by few monetary policy shockson its deposits and financing. The study would employ vector auto regression model (VAR to explore thedynamics between the variables. The study would focus on data from 2004 to 2008 or performance after theAsian financial crisis. The results from these tests determined that shariah based deposits played significantrole in transmitting monetary policy effects to the economy. This study found that Islamic banking depositsin Indonesia were not sensitive to monetary policy changes. This study also concluded that IndonesianIslamic banks were resilient to financial crisis.

Declining Japanese Yen in the Changing International Monetary System

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Eiji Ogawa

2017-12-01

Full Text Available The US dollar has kept as a position of key currency in the global economy in the changing international monetary system where the euro was introduced to some states of the EU in 1999. It is an evidence of inertia of the US dollar as a key currency. Our previous study (Ogawa and Muto, 2017b conducted empirical analysis to investigate effects of several events on inertia of the US dollar. One of our findings was that the introduction of the euro increased utility of euro while utility of US dollar was kept unchanged. This paper examines the effects of the global financial crisis and the euro zone crisis as well as the introduction of the euro on the utility of the Japanese yen. The introduction of the euro significantly decreased the utility of the Japanese yen. It indicates that the introduction of the euro increased the utility of the euro while reducing the utility of the Japanese yen rather than the utility of the US dollar. The utility of the Japanese yen has significantly decreased while the global financial crisis and the euro zone crisis occurred. The Japanese yen has a declining trend in terms of its utility over time in the changing international monetary system.

MONETARY CONTROL SYSTEM IN BULGARIA – A KEY TO ECONOMIC STABILITY

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Evgeniy Stoyanov

2015-03-01

Full Text Available The paper makes a short retrospection and discuses analytically functional characteristics of a form of financial control, gaining more and more essential meaning, namely monetary control. In conditions of hardly working economy during a crisis, its formal expressions render a serious impact on the financial results for the concrete enterprises, and for the whole economic system. That is the reason as objects of attention to be examined the emergence of the idea, its evolution, the essence of the monetary control and its peculiar goals, tasks and specificity substantiated by the Bulgarian economic reality. The aim of the investigation is to prove that the objective analysis is an effective form of constructive criticism and in the concrete case a purposeful alternative in management of more and more needed economic stability.

monetary policy and macroeconomic management: a simulation ...

African Journals Online (AJOL)

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The results show that monetary variables and government finance is linked through the government's net indebtedness to the banking system. ... monetary squeeze would reduce inflation rate faster than if the reduction in ... This reduction in money supply also leads to a reduction in output, .... Methodological Framework.

Korea's Post-Crisis Monetary Policy Reforms

OpenAIRE

Donghyun Park; Junggun Oh

2005-01-01

Korea's financial crisis of 1997–1998 was brought about by the unsustainable combination of large capital inflows and an inefficient financial system. The Bank of Korea contributed to the crisis primarily through its failures as the regulator of the financial system rather than as the conductor of monetary policy. Our paper explores the role of the two major monetary policy reforms Korea has implemented in response to the crisis — the establishment of a new financial regulator and the adoptio...

Economic and utilitarian benefits of monetary versus non-monetary in-store sales promotions

DEFF Research Database (Denmark)

Reid, Mike; Thompson, Peter; Mavondo, Felix

2014-01-01

While prior research has examined the issue of sales promotion proneness, very little has examined proneness to non-monetary promotions, such as contests and premiums discovered in store. This study draws on a promotions benefits framework to examine the influence of shoppers’ desired benefits...... are that many monetary sales promotion-prone shoppers may be attracted by the benefits provided by non-monetary promotions. The increased use by managers of non-monetary promotions instead of monetary promotions may result in improved category value and brand equity benefits....

Albania and the EU: A path to convergence?

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Javier Lopez-Prol

2014-11-01

Full Text Available The aim of this paper is to assess the degree of relative convergence achieved by Albania in relation to the EU during the last decade through a descriptive empirical analysis. The paper is divided into three sections related to real and nominal convergence in the fields of economic performance; trade openness and balance; and monetary convergence, according to the Euro criteria established in the art. 140 (1 of the TFEU and the protocol Nº 13 (price stability, public finances, exchange rate, and long-term interest rates. In order to have a wide perspective about convergence-divergence trends inside and outside the EU, the tendencies followed by Germany and Greece are also mentioned, as paradigmatic cases of divergence within the EU. Finally, a summary table is presented reviewing each of the analysed variables regarding the last decade evolution and the current situation.

Text experiments of disk chopper with supermirror converging system

International Nuclear Information System (INIS)

Aizawa, K.; Soyama, K.; Matsubayashi, M.; Suzuki, J.; Watanabe, N.

2001-01-01

We measured transportation property of neutron pulsed by disk chopper with three kinds of setting of supermirror guide at JRR-3M, JAERI. We confirmed a gain of supermirror converging system to narrow straight supermirror system. The gain is approximately same as the ratio of entrance width of converging guide to width of narrow straight guide. On the other hand, we did not get a gain of supermirror converging system to wide straight supermirror system which has a same width to entrance width of converging guide and we will plan more precisely experiment. (author)

The changing U.S. financial system : some implications for the monetary transmission mechanism

OpenAIRE

Gordon H. Sellon

2002-01-01

An important part of monetary policy is the monetary transmission mechanism, the process by which monetary policy actions influence the economy. While the transmission mechanism involves a number of channels, including exchange rates, bank credit, and asset prices, most economists consider interest rates to be the principal avenue by which monetary policy affects economic activity.> In recent decades, significant changes in the structure of financial markets and institutions in the United Sta...

On the convergence of linear passive complementarity systems

NARCIS (Netherlands)

Camlibel, M. Kanat; Wouw, Nathan van de

2007-01-01

The notion of convergent systems is a powerful tool both in the analysis and synthesis of nonlinear systems. Sufficient conditions for convergence have been under investigation for smooth systems and for classes of non-smooth switching systems in the literature. In this paper, we look at a very

OPEN MARKETING - A SPECIFIC FORM OF MONETARY POLICY IN ORDER TO MONETARY VOLUME ADJUSTMENT

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CHIRTOC IRINA- ELENA

2013-02-01

Full Text Available : Applying a uniform monetary policy by all European Union member states also require harmonization of monetary policy instruments and national interbank market integration also. Monetary policy instruments used by NBR (National Bank of Romania have evolved over time as a result of alignment with the instruments used by the European Central Bank. Money market operations in Romania have appeared for the first time in 1997. Starting from the wishing of Central Bank to reduce excess liquidity in 2001 they became the most important monetary policy tool used by the National Bank of Rumania. Open market operations are the instrument of monetary policy, central banking in Eastern Europe to work towards monetary contraction or expansion. Open-market operations in recent years have become the most important monetary policy instrument they play an essential role in promoting monetary policy by the central bank. Through open marketing operations the monetary authorities aim to alter bank reserves and thereby influence the amount of currency in circulation. In Romania, the open marketing operations are initiated by the National Bank of Romania, which determines what type of tools will be used while setting terms and conditions of the implementation. Through the use and control of monetary policy instruments, the central bank as the state bank seeks managing liquidity in the economy.

The Realization Mechanism of China's Monetary Policy Objectives: 2001-2010

Institute of Scientific and Technical Information of China (English)

Wang Guogang

2013-01-01

This article explores the realization mechanism for the final and interim targets of China's monetary policy from 2001 to 2010.It finds that the three significant price surges in the ten years were not the results of loose monetary policy While maintaining rapid economic growth,China avoided the inflation linked with excess monetary supply.The introduction of total new lending in the interim targets also showed the maturing of China's monetary policy target system.To improve China's monetary operation,three measures need to te taken:firstly,basing stabilizing monetary policy on the trend of the non-food price index within the CPI;secondly,readjusting the definition of money according the different characteristics of transaction money and reserve money;and thirdly,including yuan exchange rates into the intermediate objectives of monetary policy.

How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran

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Naser Ali Yadollahzadeh Tabari

2013-04-01

Full Text Available Monetary transmission mechanism includes some channels in which monetary policy influences on macroeconomic variables such as the output and inflation. In this study, the effect of monetary policy tools including interest rate, exchange rate and money supply on the variables of monetary policy targets including inflation and output is examined through VECM methodology over the period 1989:2-2007:2. Our findings show that in long-term, monetary supply is the most important variable influencing the price followed by the variables of output and exchange rate, respectively. Exogenous-being of interest rate indicates that this channel is underdeveloped and there is no monetary policy rule like Taylor rule in Iran's economy.

Development and Application of Econometric Models for Forecasting and Analysis of Monetary Policy Scenarios

OpenAIRE

Malugin, Vladimir; Demidenko , Mikhail; Kalechits, Dmitry; Miksjuk , Alexei; Tsukarev , Taras

2009-01-01

A system of econometric models designed for forecasting target monetary indicators as well as conducting monetary policy scenarios analysis is presented. The econometric models integrated in the system are represented in the error correction form and are interlinked by means of monetary policy instruments variables, common exogenous variables characterizing external shocks, and monetary policy target endogenous variables. Forecast accuracy estimates and monetary policy analysis results are pr...

IMBALANCES IN THE FINANCIAL SYSTEM OF UKRAINE AND THEIR TRANSMISSION TO THE SYSTEMATIC RISKS IN THE MONETARY STABILITY

Directory of Open Access Journals (Sweden)

O. Liubkina

2013-10-01

Full Text Available The article examines the current state and major imbalances in the financial market of Ukraine, which are the source of risk to the national economy and can significantly affect the monetary stability during the post-crisis period and the period of recession. Threats that are associated with peculiarities of the institutional structure of the financial market of Ukraine are analyzed, namely, on the one hand, the importance of banking institutions, and on the other – functional inadequacy of the banking systems in ensuring monetary and financial stability. The analysis shows that the weaknesses of the banking system have led to the accumulation of risks and structural misbalances in the Ukrainian economy which pose a danger to stability in the financial sector. Conclusions and measures are substantiated for the use of tools of monetary policy in order to strengthen monetary and financial stability. Among them are: the necessity of changes in the methodological tools of assessment of the financial stability and accumulation of systemic risk in the economy, measures to manage the inflation risk as the main internal risk for Ukraine, ways of enhancement of interaction between the banking system and the national economy through the interest rate benchmark.

The interaction of fiscal and monetary policy in a monetary union : Balancing credibility and flexibility

NARCIS (Netherlands)

Beetsma, R.M.W.J.; Bovenberg, A.L.

1995-01-01

This paper explores how decentralized, national fiscal policies interact with a common monetary policy in a monetary union. We show that fiscal policy plays a more important ro le in stabilizing country-specific shocks than with national monetary policies. Whereas monetary u nification with an

Design of convergent switched systems

NARCIS (Netherlands)

Berg, van den R.A.; Pogromsky, A.Y.; Leonov, G.A.; Rooda, J.E.; Pettersen, K.Y.; Gravdahl, J.T.; Nijmeijer, H.

2006-01-01

In this paper we deal with the problem of rendering hybrid/nonlinear systems into convergent closed-loop systems by means of a feedback law or switching rules. We illustrate our approach to this problem by means of two examples: the anti-windup design for a marginally stable system with input

Money, the Banking System and Monetary Policy in Canada: A Teaching Unit.

Science.gov (United States)

Curtis, Douglas C. A.; Staunton, Ted, Ed.

One of a series of teaching units designed to introduce secondary school students to the Canadian economy, this handbook contains instructional materials on Canada's monetary system and policy. Material is organized and presented in terms of specific topic readings and illustrative activities. The topics covered in six sections are money, the…

Why monetary board: Monetary board and endogenic price flexibility

Directory of Open Access Journals (Sweden)

Bašić Tamara

2004-01-01

Full Text Available The paper presents a model which proves that a unilateral exchange rate fixing, i.e. monetary board, as opposed to certain opinions, is an optimal policy since it increases flexibility of nominal prices, which is the ultimate goal of a flexible exchange rate policy. A suitable calibration of the model shows that the higher the initial price flexibility, the lower the difference needed for "utility increase" in getting the producers to switch from fixed to flexible prices. The results obtained in all cases indicate that exchange rate fixing increases price flexibility, which proves that a unilateral exchange rate fixing, i.e. monetary board, could be an optimal monetary policy.

New jurisdiction of the European Court of Justice in resolving monetary and fiscal disputes

Directory of Open Access Journals (Sweden)

Dimitrijević Marko

2016-01-01

Full Text Available The global financial crisis has caused the need for a stronger positioning of the European Court of Justice in the new model of economic governance in the European Union. The Jurisdiction of the European Court of Justice contributes in creating the optimal legal control mechanism of budget spending in the European monetary law and ensure maintenance of euro-zone fiscal framework. The role of the European Court of Justice in the EMU in earlier periods was secondary, but in times of crisis, it points to the growing need of Jurisdiction's extending in the field of monetary relations between member states and respect of convergence rules. Court's Jurisdiction in resolving of monetary and fiscal disputes is increasingly implemented in determining the legal nature of international agreements, whose ratio is economic stability, where the Judgments regarding complementarities of these legal documents with primary law provisions have the crucial impact on the future direction of national fiscal policies coordination. Although, the Court's Jurisdiction in this area is still underdeveloped and Judgments are often conditioned by pragmatism reasons, by development of credible macroeconomic dialogue between Court of Justice, European Central Bank and European Court of Auditors may establish conditions for fullfiling legal gaps in the performance of monetary and fiscal Jurisdiction of the Court.

A zero-sum monetary system, interest rates, and implications

OpenAIRE

Hanley, Brian P.

2015-01-01

To the knowledge of the author, this is the first time it has been shown that interest rates that are extremely high by modern standards (100% and higher) are necessary within a zero-sum monetary system, and not just driven by greed. Extreme interest rates that appeared in various places and times reinforce the idea that hard money may have contributed to high rates of interest. Here a model is presented that examines the interest rate required to succeed as an investor in a zero-sum fixed qu...

Exchange rate regimes and monetary arrangements

Directory of Open Access Journals (Sweden)

Ivan Ribnikar

2005-06-01

Full Text Available There is a close relationship between a country’s exchange rate regime and monetary arrangement and if we are to examine monetary arrangements then exchange rate regimes must first be analysed. Within the conventional and most widely used classification of exchange rate regimes into rigid and flexible or into polar regimes (hard peg and float on one side, and intermediate regimes on the other there, is a much greater variety among intermediate regimes. A more precise and, as will be seen, more useful classification of exchange rate regimes is the first topic of the paper. The second topic is how exchange rate regimes influence or determine monetary arrangements and monetary policy or monetary policy regimes: monetary autonomy versus monetary nonautonomy and discretion in monetary policy versus commitment in monetary policy. Both topics are important for countries on their path to the EU and the euro area

Monetary economics from econophysics perspective

Science.gov (United States)

Yakovenko, Victor M.

2016-12-01

This is an invited article for the Discussion and Debate special issue of The European Physical Journal Special Topics on the subject "Can Economics be a Physical Science?" The first part of the paper traces the personal path of the author from theoretical physics to economics. It briefly summarizes applications of statistical physics to monetary transactions in an ensemble of economic agents. It shows how a highly unequal probability distribution of money emerges due to irreversible increase of entropy in the system. The second part examines deep conceptual and controversial issues and fallacies in monetary economics from econophysics perspective. These issues include the nature of money, conservation (or not) of money, distinctions between money vs. wealth and money vs. debt, creation of money by the state and debt by the banks, the origins of monetary crises and capitalist profit. Presentation uses plain language understandable to laypeople and may be of interest to both specialists and general public.

Convergence criteria for systems of nonlinear elliptic partial differential equations

International Nuclear Information System (INIS)

Sharma, R.K.

1986-01-01

This thesis deals with convergence criteria for a special system of nonlinear elliptic partial differential equations. A fixed-point algorithm is used, which iteratively solves one linearized elliptic partial differential equation at a time. Conditions are established that help foresee the convergence of the algorithm. Under reasonable hypotheses it is proved that the algorithm converges for such nonlinear elliptic systems. Extensive experimental results are reported and they show the algorithm converges in a wide variety of cases and the convergence is well correlated with the theoretical conditions introduced in this thesis

Money in monetary policy Information variable? Channel of monetary transmission? What is its role in Poland?

OpenAIRE

Tomasz Łyziak; Jan Przystupa; Anna Sznajderska; Ewa Wróbel

2012-01-01

The paper provides an overview of the literature on the role of monetary aggregates for conducting monetary policy and attempts to assess the role of these aggregates in the Polish monetary policy. We compare theoretical and empirical arguments which justify or undermine the need for usage of monetary aggregates by central banks, as well as arguments indicating related problems. We describe the most important areas of the discussion on the role of money in monetary policy. We present studies ...

Endogeneity and Specialization in the European Monetary Union

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Bąk Henryk

2015-06-01

Full Text Available There has been a broad discussion about the viability of the European Monetary Union (EMU in its present and prospective confines. Generally, the EMU, consisting of 19 countries, is not considered an optimal currency area due to low labor market flexibility, autonomous fiscal policies, and structural differences among its members. Considerations about the endogeneity effect of currency unions lead to the question whether the EMU will become more viable over time. According to the endogenity hypothesis formulated by Frankel and Rose [1996, 2000], a common currency area may gradually become an optimal currency area at some future point (ex post unification, despite not having been an optimal currency area (OCA prior to (ex ante currency unification. Currency unification should bring about increased intra-industry trade and greater business cycle synchronization among member states. The most recent literature and analyses presented in this paper suggest that the endogenity effect in the EMU has been frail since its onset. While real convergence between EMU member states has not advanced, divergence in i.a. economic structures, national income and productivity levels is observed. The most important economic mechanisms reinforcing convergence and divergence among monetary union members are presented in this paper. Using recent data and related research results, we show a significant divergence in economic structures, business cycle synchronization and productivity levels among Eurozone members in the last decade. The Krugman sectorial dissimilarity index is applied to measure changes in industrial similarity among member countries and the Hodrick-Prescott filter to estimate business cycle synchronization in the EMU. These divergence tendencies have been strengthened by the global financial crisis of 2008 and persist, calling for reforms and new policies within the EMU.

Will business cycles in the euro area converge? A critical survey of empirical research

NARCIS (Netherlands)

de Haan, J.; Inklaar, R.; Jong-A-Pin, R.

This survey of business cycle synchronization in the European monetary union focuses on two issues: have business cycles become more similar, and which factors drive business cycle synchronization. We conclude that business cycles in the euro area have gone through periods of both convergence and

The trade-off between monetary policy and bank stability

NARCIS (Netherlands)

Lamers, Martien; Mergaerts, Frederik; Meuleman, Elien; Vennet, Rudi Vander

2016-01-01

This paper investigates how monetary policy interventions by the European Central Bank and the Federal Reserve affect the stock market perception of bank systemic risk. In a first step, we identify monetary policy shocks using a structural VAR approach by exploiting the changes of the volatility of

The Convergence Criteria and the SAARC Common Currency

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Farooq Rasheed

2007-10-01

Full Text Available These included cross-country standard deviations of call money rates, consumer price indices, real exchange rates, growth rates of foreign exchange reserves, growth rates of real volume of trade, growth rate of real relative volume of trade and the growth rates of real per capita GDP. None of the selected variables show signs for convergence of over the whole period of 1990s through 2000s. However, for the period of 2000s most of the economic indicators show signs of convergence. This suggests emerging signs for the prospects of common currency in SAARC region. The study, however, concludes that non-economic factors must also be considered seriously before making a serious move towards monetary union in the region.

Housing and the Monetary Transmission Mechanism

OpenAIRE

Frederic S. Mishkin

2007-01-01

The housing market is of central concern to monetary policy makers. To achieve the dual goals of price stability and maximum sustainable employment, monetary policy makers must understand the role that housing plays in the monetary transmission mechanism if they are to set policy instruments appropriately. In this paper, I examine what we know about the role of housing in the monetary transmission mechanism and then explore the implications of this knowledge for the conduct of monetary policy...

Some considerations on the reform of the international monetary and financial system

OpenAIRE

E. GRILLI

1999-01-01

The paper discusses different views on the reform of the International Monetary System. It illustrates the most recent antecedents of the current debate, focusing on criteria, determinants and effects of the choice among different exchange regimes and discussing in particular the relationship between fixed exchange rates and financial crises, and the relationship between exchange rates and worldwide freedom of capital movements.

Amplification Effects and Unconventional Monetary Policies

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Cécile BASTIDON GILLES

2012-02-01

Full Text Available Global financial crises trigger off amplification effects, which allow relatively small shocks to propagate through the whole financial system. For this reason, the range of Central banks policies is now widening beyond conventional monetary policies and lending of last resort. The aim of this paper is to establish a rule for this practice. The model is based on the formalization of funding conditions in various types of markets. We conduct a comprehensive analysis of the “unconventional monetary policies”, and especially quantify government bonds purchases by the Central bank.

The Monetary Policy in the System of State Regulation of the Indian Economy

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Natalia V. Galistcheva

2015-01-01

Full Text Available The main task of this research is the analysis of India's monetary policy and its place in the system of state regulation of the economy. The article highlights the main directions of the Indian monetary policy in 1990-2000s aiming to raise competitiveness of the Indian goods on the foreign markets as well as stimulating the inflow of foreign capital in necessary volumes into the national economy. The author focuses on the main instruments of the modern Indian monetary policy, pursued in line with providing the undervalued rupee, which include the manipulating of the bank rate and currency interventions, directed mainly at sterilization of excessive inflow of foreign currency to the country. The article also underlines all the advantages and costs of the monetary policy. One of its main advantages is stimulation of national production's exports and among costs there are difficulties of importing machines and equipment into the country, increase of inflation rate as a result of massive inflow of export revenue, difficulties at external debt's service. The author notes the gradual nature of introduction of current account rupee convertibility and reasons for delay in achieving its full convertibility. Among them there are rather high level of fiscal deficit of the consolidated budget, essential average annual level of inflation, problems of non-performed assets in the economy, high liquidity ratio for commercial banks. The article also presents statistical data on the present state of the Indian foreign exchange reserves as well as dynamics in nominal and real effective exchange rate of rupee in 2005/06 - 2013/14 fiscal year.

Monetary and fiscal policy aspects of indirect tax changes in a monetary union

OpenAIRE

von Thadden, Leopold; Lipińska, Anna

2009-01-01

In recent years a number of European countries have shifted their tax structure more strongly towards indirect taxes, motivated, inter alia, by the intention to foster competitiveness. Against this background, this paper develops a tractable two-country model of a monetary union, characterised by national fiscal and supranational monetary policy, with price-setting firms and endogenously determined terms of trade. The paper discusses a number of monetary and fiscal policy questions which emer...

On Monetary and Non-Monetary Interventions to Combat Corruption

OpenAIRE

Banerjee, Ritwik; Mitra, Arnab

2017-01-01

The paper studies the relative effectiveness of extrinsic monetary disincentives and intrinsic non-monetary disincentives to corruption. In doing so, we also test the Beckarian prediction that at the same level of expected payoff, a low probability of detection with high penalty is a stronger deterrent to corruption than a high probability of detection with low penalty. In Experiment 1, two treatments are designed to study the effect of a low probability of detection with high penalty, and a ...

MONETARY TRANSMISSION CHANNELS IN FLEXIBLE MONETARY AND EXCHANGE RATE REGIMES: THE CASE OF SELECTED TRANSITION ECONOMIES

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Kosta JOSIFIDIS

2010-01-01

Full Text Available The paper explores selected monetary transmission channels in the case of transition economies. Namely, an exchange rate channel, an interest rate channel, direct and indirect influence to an exchange rate, are focused. Specific (former transition economies are differentiated according the combination of implemented monetary and exchange rate regimes: exchange rate as a nominal anchor and rigid exchange rate regimes, exchange rate as a nominal anchor and intermediate exchange rate regimes, and implicit/explicit inflation targeting monetary regime and floating (managed/free exchange rate regime. The monetary transmission is tracked during different phases in a transition process towards the EU and compared between different nominal anchors and exchange rate regimes. In order to track the influence of a monetary policy instruments (impulses to different goals of a monetary policy (responses during the period from 6-24 months, we use VAR and VEC models. Monthly frequency of following time series are used in the models: nominal exchange rates, consumer price indexes, foreign exchange reserves, and reference interest rates. The aim of the paper is to point to the distinction between de jure and de facto exchange rate regimes, and to the adequacy of used combination of monetary and exchange rate regimes having in mind revealed features of investigated monetary transmission channels.

Towards Regional Monetary Unions through Blockchain Networks

OpenAIRE

Hegadekatti, Kartik

2017-01-01

The concept of political and economic integration has not progressed beyond the concept of a Nation-state. The primary reason is the trust deficit among citizens in a supra-national entity. We can use Blockchain systems-which are trustless networks-to resolve this issue. We can float a Regional Cryptocurrency (RCC) which can bring about a successful Regional Monetary Unions (RMU) amongst a group of nations in a transparent manner. This paper deals with the idea of realizing a monetary uni...

Convergence, Crisis and Unemployment in Europe: The Need for Innovative Policies

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Enrico Marelli

2015-12-01

Full Text Available The paper reviews the double crisis that affected the euro area in the recent period. The focal point is that the austerity measures that have been undertaken in the area, especially in the peripheral countries hurt by the sovereign debt crisis, have not only caused a deep recession but are likely to lead to stagnation and persistent unemployment. In the first part of the paper, original weaknesses in the construction of the monetary union are examined, the emphasis being placed on nominal convergence criteria without taking into account the need for real convergence. This analysis is corroborated by some econometric investigations based on sigma and beta convergence for different macroeconomic variables, distinguishing between the pre-crisis period, 1999-2007, and the recent 2008-2013 period. The empirical section continues with a discussion of recent macroeconomic trends focusing on unemployment: it stresses that the deep and prolonged recession can be defeated only by adequate demand management policies. The next section explains how the excessive austerity policies recently carried out have also been caused by wrong assumptions about the size of the fiscal multipliers. The final policy section emphasizes three aspects: (i the radical reforms, at the European level, necessary if the monetary union is to survive; (ii the changes in macroeconomic policies required to put an end to the present stagnation; (iii the different and innovative policies needed to fight the high level of unemployment (especially youth unemployment.

Monetary accounting of ecosystem services

NARCIS (Netherlands)

Remme, R.P.; Edens, Bram; Schröter, Matthias; Hein, Lars

2015-01-01

Ecosystem accounting aims to provide a better understanding of ecosystem contributions to the economy in a spatially explicit way. Ecosystem accounting monitors ecosystem services and measures their monetary value using exchange values consistent with the System of National Accounts (SNA). We

Some considerations on using monetary policy to promote financial stability

Directory of Open Access Journals (Sweden)

Petria, N.

2010-12-01

Full Text Available The current period of crisis on credit markets has highlighted the crucial role of the behaviour of banks in the transmission mechanism of monetary policy. This paper summarises our considerations on how monetary policy, as the main instrument, acts in order to promote financial stability and to stabilize the banking system. Central banks have a variety of tools for implementing monetary policy, but the tool that has received the most attention in literature is the interest rate. We observe that the financial crisis that erupted in the summer of 2007 has refocused attention on other channels of monetary policy, notably the transmission of policy through the supply of credit and overall conditions in the capital markets. Monetary policy has important macroeconomic effects only to the extent that it moves financial market prices that really matter—like long-term interest rates, stock market values, and exchange rates.

Leverage, monetary policy, and firm investment

OpenAIRE

Charles X. Hu

1999-01-01

In this paper, I investigate whether the effects of monetary policy on firm investment can be transmitted through leverage. I find that monetary contractions reduce the growth of investment more for highly leveraged firms than for less leveraged firms. The results suggest that the board credit channel for monetary policy exists, and that it can operate through leverage, as adverse monetary shocks aggravate real debt burdens and raise the effective costs of investment.

Integration of Government Bond Market in the Euro Area and Monetary Policy

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Lukić Velimir

2016-01-01

Full Text Available This paper combines analysis of evolution in euro area government bond market integration and interference of European Central Bank with functioning of respective market recently. Since the introduction of euro, government bond yields converged in the euro area, bonds of different countries have become close substitutes in the perception of investors, and overall integration of the market was rather high. At the end of 2008, dramatic shift occurred and ever since disintegrative forces were set in motion. The paper presents the following measures of integration of the government bond markets: yield spreads, dispersion in yield spreads and beta coefficient. All three measures suggest unprecedented market disintegration as of 2010. The paper highlighted relevance of sovereign bond market for the smooth functioning of the monetary policy transmission mechanism in a monetary union context. Three ECB’s programmes aimed at sovereign debt crisis resolution were analysed in details. They proved successful in lowering peripheral countries’ yields and spreads, and calming the markets. If one takes central bank function of the lender of last resort for banks, then these programmes may be viewed as the “buyer of last resort” device for government bonds. Although warranted by exceptional circumstances and need for swift response, a due caution should be paid to these programmes since they pose certain challenges for conduct of monetary policy and might even have unintended consequences.

Collateral fluctuations in a monetary economy

NARCIS (Netherlands)

Ferraris, L.; Watanabe, M.

2011-01-01

This paper studies economy-wide fluctuations that occur endogenously in the presence of monetary and real assets. Using a standard monetary search model, we consider an economy in which agents can increase consumption, over and above what their liquid monetary asset holdings would allow, pledging

Bank of England’s monetary policy committee – assessing the importance and the implication upon monetary policy

OpenAIRE

Florin Cornel DUMITER; Horatiu Florin SOIM

2012-01-01

The monetary policy strategies arround the world have been envolving in the last two decades considerable. In the past, central banks’ have been associated with a „veil of mistery” having at their grounds the so-called policy mistique. Nowadays, the new monetary policy strategy – inflation targeting – promoted by many countries established new coordinates for monetary policy. In this paper we focuse upon the monetary policy committee with a special focus upon the Bank of England’s case, becau...

Monetary Policy Strategy: Lessons from the Crisis

OpenAIRE

Frederic S. Mishkin

2011-01-01

This paper examines what we have learned and how we should change our thinking about monetary policy strategy in the aftermath of the 2007-2009 financial crisis. It starts with a discussion of where the science of monetary policy was before the crisis and how central banks viewed monetary policy strategy. It will then examine how the crisis has changed the thinking of both macro/monetary economists and central bankers. Finally, it looks how much of the science of monetary policy needs to be a...

Education, Endogenous Human Capital, and Monetary Economic Growth with MIU Approach

OpenAIRE

Zhang, Wei-Bin

2013-01-01

This study builds a monetary growth model with inflation policy and education. The model is a synthesis of the Uzawa-Lucas two-sector growth model and traditional monetary model with the money-in-utility (MIU) approach. We show how money, physical capital and human capital interact over time under exogenous inflation policy in a free market economy. The dynamics of the economy is described by three differential equations. We show that the monetary economic system has a saddle equilibrium poin...

THE COMPARATIVE ANALISYS OF POLISH MONETARY POLICY WITH THE MONETARY RULE FOR THE YEARS 1995–2007

OpenAIRE

Maciej Ryczkowski

2008-01-01

According to the research and econometrical model Poland’s monetary policy and the monetary rule are very similar. In many fields both strategies prove to result in the same outcomes. Both aim to guarantee low inflation and long-term economic growth. The difference is that in Poland the control of supply of money is carried out by the control inflation instead of direct control of monetary aggregates as in monetary rule. To sum up, there is no need to separate control of money’s supply in the...

Convergent piecewise affine systems : analysis and design Part II: discontinuous case

NARCIS (Netherlands)

Pavlov, A.V.; Pogromski, A.Y.; Wouw, van de N.; Nijmeijer, H.; Rooda, J.E.

2005-01-01

In this paper convergence properties of piecewise affine (PWA) systems with discontinuous right-hand sides are studied. It is shown that for discontinuous PWA systems existence of a common quadratic Lyapunov function is not sufficient for convergence. For discontinuous bimodal PWA systems necessary

MONETARY POLICY ADJUSTMENT AT THE GLOBAL FINANCIAL CRISIS CONSTRAINTS

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Adina Criste

2014-12-01

Full Text Available The global financial crisis marked a border for central banks, as it raised challenges which constrained them both to extend the range of monetary policy instruments and to redefine their role in the financial system. The present paper aims to identify features of conducting the monetary policy of some central banks, during and after the global financial crisis outbreak. For that purpose, we apply to a comparative analysis between some central banks of European Union (EU, namely Czech National Bank (CNB, National Bank of Hungary (NBH, National Bank of Poland (NBP and National Bank of Romania (NBR. We also assume that the monetary policy could be characterised through both the challenges faced by the central banks and the type of measures adopted, as a reaction to these challenges. Analysis shows that central banks have different levels of burden, according to domestic condition, and also different ”pattern” of monetary policy adjustments, using more or less unconventional or macro-prudential measures. An important conclusion raised from this article refers to the increasing role of these special measures for central banks, which requires defining a new monetary policy framework in the near future.

Monetary Organization and National Identity

DEFF Research Database (Denmark)

Ravn Sørensen, Anders

2016-01-01

This article develops a detailed overview of literature on the relationship between monetary organization, understood as currencies and central banks, and issues of national identity and nationalism. It demonstrates how the literature on this subject for the past 20 years has developed into a dis......This article develops a detailed overview of literature on the relationship between monetary organization, understood as currencies and central banks, and issues of national identity and nationalism. It demonstrates how the literature on this subject for the past 20 years has developed...... into a distinct research field and the article sketches a set of different methodological approaches as well as geographical and thematical variations within the field. In particular, the overview points to a recent shift in focus from a preoccupation with the identity-cultivating qualities of monetary...... organization to an emphasis on how collective identities legitimize monetary organization. Based on the literature review, the article points to two underdeveloped themes for future research to investigate: (1) further studies on the interrelation between the legitimacy of monetary organization and national...

78 FR 672 - Civil Monetary Penalties

Science.gov (United States)

2013-01-04

... Part 3560 RIN 0575AC93 Civil Monetary Penalties AGENCY: Rural Housing Service, USDA. ACTION: Proposed rule. SUMMARY: The Rural Housing Service (RHS or Agency) proposes to implement two civil monetary... civil monetary penalties under the authority of 42 U.S.C. 1490s (section 543 of the Housing Act of 1949...

Monetary policy and regional output in Brazil

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Rafael Rockenbach da Silva Guimarães

2014-03-01

Full Text Available This work presents an analysis of whether the effects of the Brazilian monetary policy on regional outputs are symmetric. The strategy developed combines the techniques of principal component analysis (PCA to decompose the variables that measure regional economic activity into common and region-specific components and vector autoregressions (VAR to observe the behavior of these variables in response to monetary policy shocks. The common component responds to monetary policy as expected. Additionally, the idiosyncratic components of the regions showed no impact of monetary policy. The main finding of this paper is that the monetary policy responses on regional output are symmetrical when the regional output decomposition is performed, and the responses are asymmetrical when this decomposition is not performed. Therefore, performing the regional output decomposition corroborates the economic intuition that monetary policy has no impact on region-specific issues. Once monetary policy affects the common component of the regional economic activity and does not impact its idiosyncratic components, it can be considered symmetrical.

EURO ZONE AND ITS MONETARY POLICY

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Dorel Dumitru CHIRIŢESCU

2010-03-01

Full Text Available In this article I have tried to make a short presentation of the Euro Zone and it’s monetary policy. At the present moment the Euro Zone has 16 countries that have adopted the Euro as a national currency and also 4 small countries that have monetary agreements with their neighbours. The monetary policy represents all the regulations of the money supply and interest rates adopted by the European Central Bank in order to control the inflation rate and to stabilize a specific currency, in this case, the Euro. Stabilizing the inflation rate to certain levels is the main goal of the monetary policy. The monetary policy is the second policy, next to the fiscal one which in which a government, in this case the European Union’s official bodies, can impact the economic situation of the Eurozone. The fiscal policy represents the way a government spends, borrows or applies different types of taxes. The Monetary policy can be either expansionary, when unemployement and recessions needs to be combated, or contractionary, when inflation is conbated byt raising the interest rates.

Specialisation and Convergence in European Regions

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Enrico Marelli

2007-09-01

Full Text Available The purpose of this paper was to analyze specialization and convergence of European countries and regions, within the framework of integration in the EU. This is important not only for long-term real convergence processes, but also for a proper functioning of the monetary union (in the line of research on the OCA's criteria, asymmetry of shocks and synchronization of business cycles. The position of new member states is particularly delicate, also considering the forthcoming adoption of the euro by some of them. As indicated by the EU Treaty, economic growth should be balanced with economic and social cohesion that includes a careful consideration of regional disparities. Our empirical investigation focuses on the regions of EU25, further broken up into other relevant groupings (EU15, EMU, and the new members' EU10 group, over the period from 1980 (or 1990 for EU10 to 2005. This paper considers a rather fine regional disaggregation (NUTS-2 level, counting 250 regions. The analysis of different indices of specialisation point to a prevalent increase of homogeneity of sector structures across European regions, although in some cases (especially in the industrial sector and in some services specialisation has increased. For convergence, a sigma convergence's analysis confirms a reduction of disparities, both at a country and regional level. However, a trade-off between fast national growth and internal distribution has emerged in the early stages of development, as in the case of new members. Moreover, beta convergence has also been established - regarding per capita income, employment and productivity - for almost all territorial aggregates (excluding the new members since 1999. The addition of structural variables, following a beta-conditional approach, indicates a positive role for services and a negative impact of agriculture. Finally, some preliminary results have been obtained by the innovative inclusion of specialisation indices within

Game of Thrones: Accommodating Monetary Policies in a Monetary Union

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Dmitri Blueschke

2018-02-01

Full Text Available In this paper, we present an application of the dynamic tracking games framework to a monetary union. We use a small stylized nonlinear three-country macroeconomic model of a monetary union to analyze the interactions between fiscal (governments and monetary (common central bank policy makers, assuming different objective functions of these decision makers. Using the OPTGAME algorithm, we calculate solutions for several games: a noncooperative solution where each government and the central bank play against each other (a feedback Nash equilibrium solution, a fully-cooperative solution with all players following a joint course of action (a Pareto optimal solution and three solutions where various coalitions (subsets of the players play against coalitions of the other players in a noncooperative way. It turns out that the fully-cooperative solution yields the best results, the noncooperative solution fares worst and the coalition games lie in between, with a broad coalition of the fiscally more responsible countries and the central bank against the less thrifty countries coming closest to the Pareto optimum.

Transnational Corporations in a Global Monetary Theory of Production: A World-Systems Perspective

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Marc Pilkington

2015-08-01

Full Text Available In this paper, I argue that it is possible to enrich world-systems analysis with a heterodox Keynesian monetary theory of production known as the Theory of Money Emissions, based on the views put forward by the French economist Bernard Schmitt. In the aftermath of the global financial crisis, I aim to rehabilitate and adapt the old Keynesian proposal of an international clearing union to the modern world-system by providing a rationale behind a common world currency and a renewed perspective on money and transnational production.

Fiber-wireless convergence in next-generation communication networks systems, architectures, and management

CERN Document Server

Chang, Gee-Kung; Ellinas, Georgios

2017-01-01

This book investigates new enabling technologies for Fi-Wi convergence. The editors discuss Fi-Wi technologies at the three major network levels involved in the path towards convergence: system level, network architecture level, and network management level. The main topics will be: a. At system level: Radio over Fiber (digitalized vs. analogic, standardization, E-band and beyond) and 5G wireless technologies; b. Network architecture level: NGPON, WDM-PON, BBU Hotelling, Cloud Radio Access Networks (C-RANs), HetNets. c. Network management level: SDN for convergence, Next-generation Point-of-Presence, Wi-Fi LTE Handover, Cooperative MultiPoint. • Addresses the Fi-Wi convergence issues at three different levels, namely at the system level, network architecture level, and network management level • Provides approaches in communication systems, network architecture, and management that are expected to steer the evolution towards fiber-wireless convergence • Contributions from leading experts in the field of...

“THE NET MONETARY STATEMENT” AND “THE NET NON-MONETARY STATEMENT” – ASSESSMENT INDICATORS FOR THE FINANCIAL POSITION OF THE ENTITY

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SORIN-CONSTANTIN DEACONU

2012-10-01

Full Text Available This paper examines two indicators, namely the net monetary statement and the net non-monetary statement. To determine and analyze them, we started with the classification of assets (monetary and non-monetary and liabilities (monetary and nonmonetary. The actual values of these elements were established on the basis of information supplied by the balance sheet, followed by the calculus of the net monetary statement and of the net non-monetary statement. These indicators provide relevant and reliable information to the users of financial statements and, in the future, they should be taken into account because they bring additional information about the financial position of the entity.

Is Monetary Policy Effective During Financial Crises?

OpenAIRE

Frederic S. Mishkin

2009-01-01

This short paper argues that the view that monetary policy is ineffective during financial crises is not only wrong, but may promote policy inaction in the face of a severe contractionary shock. To the contrary, monetary policy is more potent during financial crises because aggressive monetary policy easing can make adverse feedback loops less likely. The fact that monetary policy is more potent than during normal times provides a rationale for a risk-management approach to counter the contra...

Monetary Policy Rules in Some Transition Economies

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Mohamed El-Hodiri

2014-12-01

Full Text Available In this paper we examine the question of whither monetary rules or ad hoc monetary policies were followed during the early stages of transition and in response to the global financial crisis. We study Eastern European countries and thee CIS countries. We find that during the early of transition, both developed economies and economies in transition used the monetary base, as well as the interest rate, as the main tools for monetary policy. However, in response to the global crises, priority was given to the main objective such as containing inflation and supporting economic growth. Monetary authorities had the additional possible choice of alternative objectives, such as stabilization of nominal exchange rate and real effective exchange rate, or increase in reserves. It was found that countries mostly retained priorities of monetary policy and some of them gave a greater importance to the alternative objectives.

To be or renminbi: Trend in the evolution of the international monetary system

OpenAIRE

Malović Marko G.

2014-01-01

By joining the recent research bandwagon in international finance, this paper reexamines the potential of Chinese yuan for becoming a leading world currency. After analysing historical perspective and the ongoing state of affairs in de facto tripolar global monetary system, both external and internal impediments to internationalisation of the 'redback' are given a due consideration. In light of portfolio rebalancing urges in developing countries' FX reserves structure, as well as China's own ...

THE INFLUENCES OF INFLATION ON THE MONETARY POLICY INTEREST

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Popa Coralia Emilia

2012-12-01

mainly due to the decrease of inflation phenomenon, although at the end of 2011 important quantities of liquidities were introduced in the financial system. It remains to be analysed to what extent the inflation phenomenon will be possible to manage under the conditions of the renewal of economic instability in the euro area and to which direction this aspect will influence the monetary policy of the National Bank of Romania.

CONSIDERATIONS REGARDING MONETARY POLICY IN ROMANIA

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Pitorac Ruxandra

2015-07-01

Full Text Available The main objective of this paper is to study the Romania’s monetary policy, in the period 1996-2013. The research starts with a theoretical review of the monetary policy, whose main purpose is influencing the broad money supply and the lending requirements and the institution in charge of achieving this objective is the Central Bank, highlighting its impact upon the economic activity, through the Keynesian analysis model IS-LM and a correlation between the monetary policy measures and the phases of the economic cycle whose results indicate that during the recession periods it is recommended to reduce interest rates in order to stimulate investments, by raising the money supply, and during the expansion period it is recommended to increase the interest rate in order to cut back the money supply. Starting from this premises, the research takes into account the study of the monetary policy measures adopted by the governmental authority of Romania, making a quantitative analysis of the main macroeconomic indicators: the real interest rate, the lending interest rate, the deposit interest rate and the broad money supply and through a multifactorial regression, highlighting the impact of the interest rates upon the monetary aggregate M2. Moreover, a comparison between the monetary policy measures adopted in Romania and the monetary policies recommended by specialized literature has been done, and the results have indicated that during recession periods the attention of the governmental authorities is focused upon adopting the right measures, but during the expansion periods this doesn’t happen. The results of this research highlight the economic situation in Romania and the way in which the governmental authority intervened, through the monetary policy measures, in order to mitigate the negative effects of the cyclical fluctuations.

Monetary policy and insolvency of economic sector

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Tepavac Rajko

2012-03-01

Full Text Available The main task of monetary policy of our central bank is to achieve and preserve stability of prices and currency. Targeted inflation rate has been chosen as operating instrument for gradual realization of low and stable inflation, along with elimination of inflation expectations. Also, a specific inflation corridor is chosen to ensure operations, transparency and ex ante effects of monetary policy. The paper presents analysis on whether there really is a restrictive monetary policy, deflections of real inflation from the programmed one, level of 'restrictiveness' of monetary policy and behavior of bank loans, money supply, nominal and real economic growth. Analysis is carried out and criticism of concepts of monetary regulation of mandatory bank reserves, blocking of financial bank potential through monetary regulation instruments, but also relations between central and business banks through open market policy. Criticism of repo operations and complete disappearance of selective credit policy is provided as well. The problem of almost embedded insolvency of economic sector is highlighted.

31 CFR 596.307 - Monetary instruments.

Science.gov (United States)

2010-07-01

... FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY TERRORISM LIST GOVERNMENTS SANCTIONS REGULATIONS General Definitions § 596.307 Monetary instruments. The term monetary instruments shall have the meaning...

Mutations at the Level of the Measures Adopted by Monetary Authorities

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Marius Constantin APOSTOAIE

2011-11-01

Full Text Available Following the intensification of the international financial crisis in autumn 2008 the functioning of the financial system was seriously hindered. Central banks around the world responded firmly by lowering their key interest rates to historically low levels. As financial conditions didn’t improve as hoped and the real economy was still unstable, revealing therefore the limits of mainstream monetary policy, many monetary authorities employed several unconventional measures. This study documents two important approaches of classifying “unorthodox” monetary policies and reviews several measures undertook by central banks highlighting the impact and some of the possible risks to the contemporary economy.

Monetary Policy Committee and Monetary Policy Conduct in Nigeria: A Preliminary Investigation

OpenAIRE

Ekor, Maxwell; Saka, Jimoh; Adeniyi, Oluwatosin

2014-01-01

The study provides an incisive but preliminary investigation into the activities of the monetary policy committee of the central bank of Nigeria and the implications for monetary policy, using the standard deviation measure of volatility and the ordinary least square method. The findings show that the ‘internal’ members and majority of the ‘external’ members have different preferences as shown in the voting patterns. Also, there has been reduction in inflation, money and stock markets vola...

Riserve monetarie e inflazione mondiale.

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D.I. FAND

2014-09-01

Full Text Available World reserves have almost tripled since 1968, with world monetary growth accelerating since 1971 and world inflation jumping to double digits in 1974. In light of these developments, the article looks at whether the stock of world reserves has grown so rapidly that it may generate further world inflation, or whether it is deficient and potentially deflationary. The author first reviews the expansion of global reserves in the 1968-73 period of fixed exchange rates and the recent acceleration of inflation. A comparison of the transitional and permanent effects of floating rates on the demand for international reserves, excess reserves, monetary growth and world inflation is then presented and the impact of gold prices on the monetary bases, growth and inflation is taken up. Finally, OPEC’s accumulation of foreign assets and its impact on the monetary bases of individual countries is considered, as well as other influences on world liquidity.JEL: E31, E42, F31

On the nexus of monetary policy and financial stability: Is the financial system more resilient?

OpenAIRE

Mora, Patricia Palhau; Januska, Michael

2016-01-01

Monetary policy and financial stability are closely intertwined, and the resilience of the financial system carries weight in this relationship. This paper explores whether the financial system is more resilient as a result of the G20's post-crisis agenda for financial regulatory reform. It summarizes the agenda's key measures and implementation schedules, both internationally and in Canada, reviews the effectiveness of the reform measures in preventing and addressing financial imbalances, an...

Correlation Analysis between Nominal and Real Convergence. The Romanian Case

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Marius-Corneliu Marinas

2006-05-01

Full Text Available This study aims to analyze the sources of the correlation between the nominal and real convergence, as well as the impact of the macroeconomic politics on it. The perspective of Euro adoption will impose stricter management of monetary and budgetary politics, which will affect negatively the catching up process of the economic delays given the lack of higher economic flexibility. This enables a more rapid adjustment of the economy to some persistent shocks as a result of applying growth aggregate supply politics.

Correlation Analysis between Nominal and Real Convergence. The Romanian Case

Directory of Open Access Journals (Sweden)

Marius-Corneliu Marinas

2006-03-01

Full Text Available This study aims to analyze the sources of the correlation between the nominal and real convergence, as well as the impact of the macroeconomic politics on it. The perspective of Euro adoption will impose stricter management of monetary and budgetary politics, which will affect negatively the catching up process of the economic delays given the lack of higher economic flexibility. This enables a more rapid adjustment of the economy to some persistent shocks as a result of applying growth aggregate supply politics.

MONETARY TRANSMISSION CHANNELS IN ROMANIA – THE CREDIT CHANNEL

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Magdalena RĂDULESCU

2009-12-01

Full Text Available The theoretical – intuitive analysis applied to the segment of monetary transmission evidences the fact that forming the traditional monetary impulses transmission channels are in a starting phase due to the long financial non – intermediary process which Romanian economy had known. In these conditions, the exchange rate channel, and also NBR currency purchases was, for a long time, an important way through which monetary authorities actions influenced macro economical behaviors. But starting with 2000, it is observed a credit channel reactivation and, especially, interest rate channel. Anyhow, the credit channel continues to be undermined by the existence of liquidity surplus within the system, by the phenomena of substitution of national currency credit with currency credits, and also moral hazardous displays. Albeit some of these phenomena also affect the interest rate channel, its role in sending monetary policy impulses is in a continuous progress. Apparently, it acts by way of nominal interest rates, their real level seeming less relevant. Once with remaking the two traditional channels, the companies and households balance is configured and consolidated, which shall potentate in the future the efficiency of the monetary policy. This paper analyses the credit channel in Romania, through an unrestricted VAR analysis.. It shows the responses of exchange rate, inflation rate, GDP, interest rate, imports and exports to a shock on non-governmental credit

Sustainability and Convergence: The Future of Corporate Governance Systems?

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Daniela M. Salvioni

2016-11-01

Full Text Available In today’s world, a sustainable approach to corporate governance can be a source of competitive advantage and a long-term success factor for any firm. Sustainable governance requires that the board of directors considers economic, social and environmental expectations in an integrated way, no matter what ownership structure and formal rules of corporate governance apply to the company: this mitigates the traditional differences between insider and outsider systems of corporate governance. Previous studies failed to consider the contribution of sustainability in the process of corporate governance convergence. Therefore, the aim of this article is to fill the gap in the existing literature by means of a qualitative analysis, supporting the international debate about convergence of corporate governance systems. The article describes the evolution of outsider and insider systems in the light of the increasing importance of sustainability in the board’s decision-making and firm’s operation to satisfy the needs of all the company’s stakeholders. According to this, a qualitative content analysis developed with a directed approach completes the theoretical discussion, demonstrating that sustainability can bring de facto convergence between outsider and insider corporate governance systems. The article aims to be a theoretical starting point for future research, the findings of which could also have practical implications: the study encourages the policy makers to translate the sustainable business best practices into laws and recommendations, strengthening the mutual influence between formal and substantial convergence.

Monitoring the International Monetary System: Its Development in the West, and Future in the East

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Todd J. Barry

2016-06-01

Full Text Available The “gold standard” is frequently mentioned in text books, but few without an economics background can fully understand it. This paper thus begins in 1896, when U.S. Presidential candidate William Jennings Bryan declared, “You shall not crucify mankind on a cross of gold.” Since going back to the middle ages, the world has had numerous monetary systems, which are here explained in comprehensible terms. A modern reoccurring idea is to return to some form of the gold standard, while some argue for switching to the Chinese yuan or another international reserve currency, which the International Monetary Fund (IMF will adopt in their Special Drawing Rights starting in October, 2016. This paper is normative in that it comments on the current international structure, but uses economic principles to support its argument in favor of an internationally strong dollar. It thus traces the history of a topically contentious subject, with a basic regression indicating important predictive factors for the future. It offers that a new gold standard would not be in the world’s interest, interfering with monetary policy, while emerging market countries would be best to import more and financially deepen, which the regression shows was why the Chinese yuan was adopted by the IMF, then looking ahead to other parts of Asia and towards bitcoins.

PROBLEM AND PERSPECTIVE OF ISLAMIC MONETARY POLICY IN INDONESIA

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Marsuki Marsuki

2017-03-01

Full Text Available This article would try to explicate several theoretical and practical concepts on the problems and prospectsof Islamic monetary policy in Indonesia using a critical analysis approach, in accordance with standardscientific references, and would be complemented with descriptions and examples of practice. From theseillustrations and analyses, it appeared that on one hand, Islamic monetary policy would find many difficultiesif implemented fully, considering that there were several fundamental obstacles that would have to besurmounted by such an implementation, primarily the fact that Indonesian Constitution (UUD 1945 was notbased on Islamic law or syariah. On the other hand, despite problems and challenges, the existing conditionwas still open for the possibility for partial implementation of Islamic monetary policy. It was because therewere several conditions which were amenable for an implementation, for instance the facts that majority ofIndonesian population was Muslim, the increasing acceptance of the public for the advantages of Islamicmonetary and financial system, and increasing support by stakeholders of the banking system, especiallythe Indonesian central bank (BI. Moreover, there were facts about financial institutions and existingsyariah banking institutions.

The monetary mechanics of the crisis

OpenAIRE

von Hagen, Jürgen

2009-01-01

In response to the financial and economic crisis, central banks, unlike in the 1930s, have created enormous amounts of money. There are fears that this will lead to inflation, but it is base money (the central bank's liabilities) that has expanded; total monetary aggregates have not. By contrast, in the 1930s, base money remained stable and monetary aggregates dropped. The reason for this is that in a crisis the relationship between the base money and monetary aggregates is altered. The money...

Mutations at the Level of the Measures Adopted by Monetary Authorities

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Stefan MATEI

2012-08-01

Full Text Available Following the intensification of the international financial crisis in autumn 2008, the functioning of the financial system was seriously hindered. Central banks around the world responded firmly by lowering their key interest rates to historically low levels. As financial conditions did not improve as hoped and the real economy was still unstable, revealing therefore the limits of mainstream monetary policy, many monetary authorities employed several unconventional measures. The scope of this paper is to investigate two important approaches of classifying “unorthodox” monetary policies and review several measures undertook by central banks, highlighting the impact and some of the possible risks to the contemporary economy.

Virtual Currencies – monetary policy dilemmas and regulatory challenges

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Daj Alexis

2018-01-01

Full Text Available Although the topic of virtual currencies is not completely new, the current technological developments and the extent of the globalisation process appear to have changed the scope of the research efforts needed to cover not only the advantages and opportunities, but also the disadvantages and threats that the expansion of virtual currencies can pose for monetary policy and the safety of the financial system. This paper comprises a brief presentation of the different types of virtual currencies and identifies some of the most significant implications of large-scale virtual currency adoption for monetary authorities and regulators, while providing an overview of the main trends in the evolution of virtual currencies. In the end, one conclusion is evident: whatever monetary policy or regulatory issues arise from the use of virtual currencies, their consequences are far from virtual.

The effect of monetary policy of Central Bank on activities of Tehran Stock Exchange

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Hossein Vazifehdust

2013-08-01

Full Text Available This paper examines the relationship between monetary policy and activity of the Tehran Stock Exchange. The statistical population of the research consists of all companies listed in Tehran Stock Exchange and central bank monetary policy variables including time series generated by the central bank seasonally. For the purpose of data analysis, econometric autoregressive system models, and two-stage ADF regression with unit roots test, co-integration and reliability were used to determine level of effect and type of effect of the four components of monetary policy on exchange activity. The results of this study show that there is a strong relation between share price index and monetary policy variables and between monetary policy variables and trading volume. However, the relation between monetary policy variables and cash yield index was not so strong, but monetary policy variables’ effect on stock exchange activity was acceptable considering strong relation between the two first variables. It is suggested that if this work is done using non-linear models, it will yield better results.

Monetary Policy Shocks and Portfolio Choice

OpenAIRE

Fratzscher, Marcel; Saborowski, Christian; Straub, Roland

2010-01-01

The paper shows that monetary policy shocks exert a substantial effect on the size and composition of capital flows and the trade balance for the United States, with a 100 basis point easing raising net capital inflows and lowering the trade balance by 1% of GDP, and explaining about 20-25% of their time variation. Monetary policy easing causes positive returns to both equities and bonds. Yet such a monetary policy easing shock also induces a shift in portfolio composition out of equities and...

A Study of Philippine Monetary and Banking Policies

OpenAIRE

Bautista, Ernesto D.

1992-01-01

This study assesses the Philippine monetary and banking policies with the view of identifying preferred policy options and features of a monetary and banking policy program supportive of overall economic growth and agro-industrial development. It describes the following: the impact of existing monetary and banking policy on short- and long-term economic development and the legislative and administrative measures required to adopt and implement such a monetary and banking policy. It also ident...

Monetary transmission and bank lending in the Netherlands

OpenAIRE

Kakes, Jan

1998-01-01

This paper investigates the role of bank lending in the monetary transmission process in the Netherlands. We observe significant differences between the responses of corporate and household lending following a monetary shock. We also find that banks hold a buffer stock of securities which they use to offset monetary shocks. The main implication of our study is that a bank lending channel is not likely to be an important transmission mechanism of monetary policy.

MONETARY POLICY AND PARALLEL FINANCIAL MARKETS

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Adela IONESCU

2015-07-01

Full Text Available Monetary policy is one of the economic policy "tools" through which it acts on the currency demand and supply in the economy. The importance of monetary policy results from its primary objective - price stability, plus limiting inflation and maintaining internal and external value of the currency. Responsibility for achieving these objectives rests with the Central Bank, which has a monopoly in the formulation and the implementation of monetary policy targets. Price stability is the primary objective of monetary policy and also the central objective of economic policy, alongside with: sustainable economic growth, full employment of labor force, balance of external payments equilibrium. To achieve these overall objectives of economic policy, monetary policy acts through currency as an instrument of action and it represents the overall action exercised by the monetary authority to influence economic development and to ensure price stability. In economic processes numerous factors emerge to the sale or purchase of capital available for a shorter or longer period and to achieving their aspirations of maximize capital gains, they are negotiating, they are confronting and agreeing within specific market relationships. The entirety of relations between various economic issues, enterprises and individuals, between them and the banking intermediaries, as well as the relationship between banks and other credit institutions on the transfer of cash money as specific form of debt and fructification of capital, form capital markets or credit markets. These markets are carved up according to the nature and purposes of the participants.

Il sistema dei controlli monetari e creditizi in Francia.

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G.R. HODGMAN

2014-08-01

Full Text Available The article presents French monetary and credit controls as a coherent system, displays the inner logic of this system and evaluates its implications for policy objectives related to growth, the price level and balance-of-payments. The French system is sufficiently different from other countries in the degree of “socialisation” of credit and direct administrative intervention by the authorities into credit affairs. The effects of traditional operations such as open market purchases cannot be understood in the French environment without a grasp of certain features of French financial institutions. Moreover, the French authorities assign priority to selective credit policy as distinct from general monetary policy and are permitted to intervene in the free play of financial market forces through administrative measures.JEL: E52, E31, F32

Economic policy of the monetary authorities as factor of achievement of abstract financial stability

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Tashtamirov M.R.

2016-11-01

Full Text Available this article is devoted to the questions of the crisis phenomena in Russian economy in sector of a monetary and credit system and a role of economic policy of the monetary authorities (Bank of Russia in ensuring financial stability. Short assessment of the main macroeconomic indicators of the country economy is given. The author is describing the actions of economic management regarding monetary control. It is inexpedient that the Central Bank for carrying out the tough restriction policy directed to oppression of economic development and further primitivizing of national economy. It is offered to transform monetary policy for ensuring anti-recessionary actions exiting the stagnating condition.

The advantage of international fiscal cooperation under alternative monetary regimes

DEFF Research Database (Denmark)

Jensen, Henrik

1996-01-01

We consider the strategic interplay between international monetary and fiscal cooperation in a world of interdependent economies. Motivated by the ongoing discussion of monetary unification of Europe, focus is on monetary cooperation, and in particular how its performance is altered by the introd......We consider the strategic interplay between international monetary and fiscal cooperation in a world of interdependent economies. Motivated by the ongoing discussion of monetary unification of Europe, focus is on monetary cooperation, and in particular how its performance is altered...

Voluntary non-monetary approaches for implementing conservation

OpenAIRE

Santangeli, Andrea; Arroyo, Beatriz; Dicks, Lynn V.; Herzon, Irina; Kukkala, Aija S.; Sutherland, William J.; Moilanen, Atte

2016-01-01

The voluntary non-monetary approach to conservation refers to actions that citizens or organizations could voluntarily implement in their area of influence without the incentive of monetary compensations. To be effectively implemented by untrained actors, actions should be clearly defined, straightforward to implement and not require specific scientific knowledge. The costs of actions should also be sufficiently affordable to be widely applied without monetary incentives. A voluntary non-mone...

On the effects of monetary policy shocks in developing countries

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Magda Kandil

2014-06-01

Full Text Available Using annual data for a sample of developing countries, the time-series evidence indicates the allocation of monetary policy shocks, both expansionary and contractionary, between price inflation and output growth. Subsequently, cross-country regressions evaluate factors that underlie the difference in these allocations and their implications. The real effects of monetary shocks increase as the elasticity of aggregate demand increases with respect to monetary shocks. Nonetheless, capacity constraints hamper the output adjustment to monetary shocks and increase price inflation. Across countries, trend output growth increases with the output response to monetary shocks. Consistent with the stabilizing function of monetary policy, the variability of output growth decreases in the face of monetary fluctuations across countries. In contrast, monetary fluctuations increase the trend and variability of price inflation across countries.

The importance and role of the Central Bank in the creation of a healthy monetary and investment policy

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Šmigić-Miladinović Jasmina

2016-01-01

Full Text Available The paper's starting point is finding an answer to the question: What kind of monetary policy should be followed by the Central bank in new market circumstances? As a major monetary institution, the Central bank should provide credibility for its monetary policy, which is particularly important during a macroeconomic stabilisation. In order to choose the most appropriate monetary policy, its creators should be familiar with the monetary policy's effects on economic activities, first of all on investment activities and the period in which they may occur. The Central bank uses its special status and authorisations to control monetary trends, to keep and handle foreign exchange reserves, to keep banks' required reserves, to manage the country's debt, to be the final creditor of the banking system, to take care of the banking system's liquidity. That is why the Central bank has become important for the functioning of the whole financial market, and especially the monetary market. The Central bank has both direct and indirect influence on the most important events on financial markets, financial system, as well as a wider influence - on a country's whole economy. In order to envisage the financial market's impact on monetary and investment policies, one should begin with the Central bank's role on the financial market, and at the same time analyse the financial market's instruments and institutions.

UNCONVENTIONAL MONETARY POLICY: CHANGING EUROPEAN CENTRAL BANK’S PERSPECTIVE ON FINANCIAL GOVERNANCE

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Bogdan Munteanu

2017-06-01

Full Text Available The paper aims to look at the European Central Bank governance in terms of decisions taken to deploy a new kit of unconventional monetary policy measures, in order to respond to a new economic paradigm characterized by dynamic change in evolution, high volatility and enhanced financial risks. As an institution, the European Central Bank is led by the Governing Council and the decisions taken on how to use monetary policy impact an entire financial system. European Central Banking governance is about safeguarding the common currency and ensuring a future for the economic and monetary area to emerge stronger. For this purpose, when conventional monetary policies reach limits in their effects, it is time for the European Central Bank governance to analyse and assume the decision to deploy the arsenal of unconventional monetary policies. The experience of recent years showed a positive effect of the European Central Bank’s unconventional monetary measures, but costs could rise in case of extensive use of such measures. When these measures are used in combination, the effect is amplified and the European Central Bank needs to assess when it is time to withdraw the support, how to communicate and what exit strategy should use, what the costs are and impact can expect.

Monetary valuation in Life Cycle Assessment

DEFF Research Database (Denmark)

Pizzol, Massimo; Weidema, Bo Pedersen; Brandão, Miguel

2015-01-01

different impacts and/or with other economic costs and benefits. For this reason, monetary valuation has a great potential to be applied also in Life Cycle Assessment (LCA), especially in the weighting phase. However, several challenges limit its diffusion in the field, which resulted in only a few......Monetary valuation is the practice of converting measures of social and biophysical impacts into monetary units and is used to determine the economic value of non-market goods, i.e. goods for which no market exists. It is applied in cost benefit analysis to enable the cross-comparison between...

Monetary transmission and bank lending in Germany

OpenAIRE

Kakes, Jan; Sturm, Jan-Egbert; Philipp Maier

1999-01-01

This paper analyses the role of bank lending in the monetary transmission process in Germany. We follow a sectoral approach by distinguishing corporate lending and household lending. We find that banks respond to a monetary contraction by adjusting their securities holdings, rather than reducing their loans portfolio. Most lending categories even show an increase following a monetary tightening. The main implication of our results is that a bank lending channel is not an important transmissio...

Endogenous price flexibility and optimal monetary policy

OpenAIRE

Ozge Senay; Alan Sutherland

2014-01-01

Much of the literature on optimal monetary policy uses models in which the degree of nominal price flexibility is exogenous. There are, however, good reasons to suppose that the degree of price flexibility adjusts endogenously to changes in monetary conditions. This article extends the standard new Keynesian model to incorporate an endogenous degree of price flexibility. The model shows that endogenizing the degree of price flexibility tends to shift optimal monetary policy towards complete i...

SME e rapporti esterni. (The European monetary system – managing the external relationships

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P. LANGUETIN

2013-12-01

Full Text Available Questo documento è stato presentato in occasione del quarto Seminario Internazionale sui diritti economici e monetari dell'Unione  Europea, tenutosi a Copenaghen nel marzo del 1981. Il lavoro sottolinea segnali incoraggianti di una maggiore cooperazione tra gli Stati Uniti e le autorità europee sugli interventi coordinati che si è sviluppato nel 1980. Tuttavia, l'autore vede possibile un ulteriore margine di miglioramento nell' l'idea di Jacques van Ypersele di set-up di contratti di swap in dollari / ECU tra il Fondo europeo di cooperazione monetaria e la Federal Reserve.  This paper was presented at the Fourth International Seminar on European Economic and Monetary Union, held in Copenhagen in March of 1981. The work points out encouraging signs of improved cooperation between US and European authorities on coordinated interventions which developed in 1980. However, the author sees possible further scope for improvement in the idea of Jacques van Ypersele to set-up dollar/ECU swap arrangements between the European Monetary Cooperation Fund and the Federal Reserve. JEL: E42, F36

Monetary Romanticism

DEFF Research Database (Denmark)

Ravn Sørensen, Anders

2013-01-01

the interrelation between monetary organisation and nationalism. In the conflict between the Danish state and the Duchies of Schleswig-Holstein in the nineteenth century, banks and currencies were mobilised as political symbols to promote an agenda of regional nationalism. The local Schleswig-Holstein currency...

Endogenous cortisol levels are associated with an imbalanced striatal sensitivity to monetary versus non-monetary cues in pathological gamblers

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Yansong eLi

2014-03-01

Full Text Available Pathological gambling is a behavioral addiction characterized by a chronic failure to resist the urge to gamble. It shares many similarities with drug addiction. Glucocorticoid hormones including cortisol are thought to play a key role in the vulnerability to addictive behaviors, by acting on the mesolimbic reward pathway. Based on our previous report of an imbalanced sensitivity to monetary versus non-monetary incentives in the ventral striatum of pathological gamblers (PGs, we investigated whether this imbalance was mediated by individual differences in endogenous cortisol levels. We used functional magnetic resonance imaging (fMRI and examined the relationship between cortisol levels and the neural responses to monetary versus non-monetary cues, while PGs and healthy controls were engaged in an incentive delay task manipulating both monetary and erotic rewards. We found a positive correlation between cortisol levels and ventral striatal responses to monetary versus erotic cues in PGs, but not in healthy controls. This indicates that the ventral striatum is a key region where cortisol modulates incentive motivation for gambling versus non-gambling related stimuli in PGs. Our results extend the proposed role of glucocorticoid hormones in drug addiction to behavioral addiction, and help understand the impact of cortisol on reward incentive processing in PGs.

Endogenous cortisol levels are associated with an imbalanced striatal sensitivity to monetary versus non-monetary cues in pathological gamblers.

Science.gov (United States)

Li, Yansong; Sescousse, Guillaume; Dreher, Jean-Claude

2014-01-01

Pathological gambling is a behavioral addiction characterized by a chronic failure to resist the urge to gamble. It shares many similarities with drug addiction. Glucocorticoid hormones including cortisol are thought to play a key role in the vulnerability to addictive behaviors, by acting on the mesolimbic reward pathway. Based on our previous report of an imbalanced sensitivity to monetary versus non-monetary incentives in the ventral striatum of pathological gamblers (PGs), we investigated whether this imbalance was mediated by individual differences in endogenous cortisol levels. We used functional magnetic resonance imaging (fMRI) and examined the relationship between cortisol levels and the neural responses to monetary versus non-monetary cues, while PGs and healthy controls were engaged in an incentive delay task manipulating both monetary and erotic rewards. We found a positive correlation between cortisol levels and ventral striatal responses to monetary versus erotic cues in PGs, but not in healthy controls. This indicates that the ventral striatum is a key region where cortisol modulates incentive motivation for gambling versus non-gambling related stimuli in PGs. Our results extend the proposed role of glucocorticoid hormones in drug addiction to behavioral addiction, and help understand the impact of cortisol on reward incentive processing in PGs.

Monetary transmission and business cycle asymmetry

NARCIS (Netherlands)

Kakes, Jan

1998-01-01

This paper investigates asymmetric effects of monetary policy over the business cycle. A two-state Markov Switching Model is employed to model both recessions and expansions. For the United States and Germany, strong evidence is found that monetary policy is more effective in a recession than during

Monopolistic Market Position and Losses from Monetary Integration

Directory of Open Access Journals (Sweden)

Paweł Młodkowski

2009-12-01

Full Text Available The objective of the paper is to show how a market position influences company’s gains and losses from monetary integration. The literature on monetary integration already features cost and benefit analysis. However the proposed examples of both results (negative and positive are not offered for different market structures and most often are macroeconomic in nature. The paper develops an idea that a monopolistic enterprise might be worse off because of monetary integration. The case discussed, shows that prior to monetary integration, a specific solution regarding pricing of imported goods allowed the company for: (1 hedging effectively from exchange rate risk, (2 benefiting from long-term appreciation trend of the domestic currency against the euro. Both goals were achieved due to privileged market position (legal monopoly of the company. The monetary integration and the expected full EMU accession is going to remove the need for hedging but simultaneously it will result in loosing the ability to achieve extra profits extracted so far. This is a basis for a claim that costs and benefits flowing from monetary integration could depend on market structure an entity operates in. We conclude that in a more monopolized economies, the microeconomic benefits achieved by households are at the cost of firms, while in a perfect competition gains are uniformly distributed across agents at supply and demand sides of markets. Therefore, producers in monopolized economies could be less prone to join a monetary union. The opposite hypothesis might also be true. In economies with fewer monopolies there are fewer incentives to oppose monetary integration. The comparison of the two extreme settings allows posting a hypothesis that the perfect competition is monetary integration-neutral and the monopoly is monetary integration-averse market structure. Data for the paper and the studied case are originating from one of the largest legal monopolists in Poland that

The Impact of the FOMC's Monetary Policy Actions on the growth of Credit Risk: the Monetary Policy - Liquidity Paradox

OpenAIRE

Kwamie Dunbar

2008-01-01

Credit risk is influenced by interest rates and market liquidity. This paper examines the direct and indirect impacts of unexpected monetary policy shifts on the growth of corporate credit risk, with the aim of quantifying the size and direction of the response. The results surprisingly indicate that monetary policy and liquidity impulses move counter to each other in their effects on credit risk ("The monetary policy-liquidity paradox"). The analysis indicates that while contractionary monet...

Convergence to equilibrium of renormalised solutions to nonlinear chemical reaction–diffusion systems

Science.gov (United States)

Fellner, Klemens; Tang, Bao Quoc

2018-06-01

The convergence to equilibrium for renormalised solutions to nonlinear reaction-diffusion systems is studied. The considered reaction-diffusion systems arise from chemical reaction networks with mass action kinetics and satisfy the complex balanced condition. By applying the so-called entropy method, we show that if the system does not have boundary equilibria, i.e. equilibrium states lying on the boundary of R_+^N, then any renormalised solution converges exponentially to the complex balanced equilibrium with a rate, which can be computed explicitly up to a finite-dimensional inequality. This inequality is proven via a contradiction argument and thus not explicitly. An explicit method of proof, however, is provided for a specific application modelling a reversible enzyme reaction by exploiting the specific structure of the conservation laws. Our approach is also useful to study the trend to equilibrium for systems possessing boundary equilibria. More precisely, to show the convergence to equilibrium for systems with boundary equilibria, we establish a sufficient condition in terms of a modified finite-dimensional inequality along trajectories of the system. By assuming this condition, which roughly means that the system produces too much entropy to stay close to a boundary equilibrium for infinite time, the entropy method shows exponential convergence to equilibrium for renormalised solutions to complex balanced systems with boundary equilibria.

Euroization, monetary union and the credibility of monetary policy

Directory of Open Access Journals (Sweden)

Luka Brkić

2008-01-01

Full Text Available Assessment of exchange-rate arrangements has become an integral feature of recent discussions on reform of the international financial architecture. The upshot of this recent interest in exchange-rate regimes is that a large part of the profession appears to have become converted to ‘the hypothesis of the vanishing middle regime’, for countries well-integrated into world capital markets, there is little, if any, middle ground between floating exchange rates and monetary unification. The literature on optimal currency areas emphasizes that policy independence is crucial if countries face recurrent idiosyncratic disturbances. If member-countries of the EMU show sizeable asymmetry in the timing of business cycle phases and their exposure to exogenous shocks, these countries may be better off retaining their ability to conduct monetary and exchange-rate policies. Consequently,the important empirical issue is whether Europe is a region in which country-specific shocks prevail or whether shocks affect most of these countries in a similar way. Euroization is a relatively rare phenomenon. Yet in recent years it has attracted a lot of attention,which can be proved by an increasing number of studies dealing with this problem, as well as an increasing number of countries taking this course of action. This paper deals with the advantages and disadvantages of euroization (dollarization, not only from the theoretical aspect but also on the basis of experience of other dollarized countries. The unequivocal conclusion is that euroization (dollarization is not a monetary policy instrument that can be recommended to Croatia.

MONETARY POLICY AND THE INFLATION TARGETING STRATEGY

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Zina V. MARCU căs. CIORAN

2013-10-01

Full Text Available The monetary policy is a basic component of the economic policy. It has an important role in fulfilling the main objectives of the economic politics, which is: price stability, insurance of a balanced economic raise, full occupancy of human resources and the external payment balance stability insurance. Inflation is a negative thing affecting the economy both on short and long term. On short term, it erodes the purchasing power of currency and thus, it mostly affects the retirees and those with fixed incomes. On long term, inflation discourages the investments and the economic growth. The purpose of this paper consists in the revision and presentation of the specialized literature concerning the impact the monetary policy has on the main macro-economical variables, especially on inflation, in terms of influence of the monetary authority decision on economic and financial conjunction. It was found that the monetary authorities of any country can evaluate exactly the rhythm and the effects of their actions on the economy by understanding the mechanisms which the monetary policy uses to influence the economy.

Monetary Policy and Price Stability in Nigeria

Directory of Open Access Journals (Sweden)

Idoko Ahmed Itodo

2017-06-01

Full Text Available Irregular price changes, with its economic consequences of market risks and uncertainties, have been one of the most challenging problems facing the Nigerian economy. Successive financial sector reforms, which seek to enhance the role of monetary policy instruments in macroeconomic management, in view of the theoretical and empirical link between monetary policy and general price level, have been implemented with less than satisfactory results. This paper examines the monetary policy in stabilizing price level in Nigeria. We employ the Vector Autoregressive (VAR model, with in-built differencing to take care of unit root in these time series data, to capture this relationship. From our findings, we discover that, money supply has no significant relationship with price level in Nigeria. This, we believe, may be due to the influence of the large informal financial sector which controls a very significant fraction of money in circulation. Thus, policy reforms that would curb the influence of the informal financial sector should be implemented in order to allow the central monetary authority to work better, and enhance the role of monetary management in Nigeria.

MONETARY EXPECTATIONS OF THE ROMANIAN EXECUTIVES REGARDING THE ADHERATION

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Ramona DUMITRIU

2006-01-01

Full Text Available This paper explores the monetary expectations induced to the managers of Romanian firms by adheration. It is based on an investigation among twenty Romanian executives regarding the impact on adheration over monetary aspects: inflation, exchange rates and adoption of euro. We conclude that the results of the monetary policy in the last years made the executives confident that the Romanian authorities could maintain the monetary stability after theadheration.

International Monetary Power and China’s Response

OpenAIRE

Hongyu Lin

2013-01-01

International monetary power has become a new area of interest since the outbreak of the global financial crisis in 2008. The USA, the EU and China will pursue global monetary power in the future, and the USD, the EURO and the RMB will become the most important world reserve currencies. The pattern of international monetary power will shift from a unilateral-hegemony structure to a triangle-balance structure. This shift has a very strong influence on changes in the current international polit...

Implementation of Monetary Policy: How Do Central Banks Set Interest Rates?

OpenAIRE

Benjamin M. Friedman; Kenneth N. Kuttner

2010-01-01

Central banks no longer set the short-term interest rates that they use for monetary policy purposes by manipulating the supply of banking system reserves, as in conventional economics textbooks; today this process involves little or no variation in the supply of central bank liabilities. In effect, the announcement effect has displaced the liquidity effect as the fulcrum of monetary policy implementation. The chapter begins with an exposition of the traditional view of the implementation of ...

Regional and Global Monetary Cooperation

OpenAIRE

Mario Lamberte; Peter J. Morgan

2012-01-01

The increasing occurrence of national, regional, and global financial crises, together with their rising costs and complexity, have increased calls for greater regional and global monetary cooperation. This is particularly necessary in light of volatile capital flow movements that can quickly transmit crisis developments in individual countries to other countries around the world. Global financial safety nets (GFSNs) are one important area for monetary cooperation. This paper reviews the c...

Economic crisis and convergence in the Eurozone countries

Directory of Open Access Journals (Sweden)

Ferreiro Jesús

2017-01-01

Full Text Available Although a key condition for the creation of a monetary union is the existence of similar structural characteristics that reduce the existence and incidence of asymmetric shocks, in the case of the Eurozone, most, if not all, studies have emphasized the existence of sizeable divergences both in the macroeconomic performances and in the structural elements of the Eurozone countries. The objective of the paper is to analyse whether the economic and financial crisis that is affecting the Eurozone since the year 2008 has had any impact of the coherence of the Eurozone, that is, whether after 2008 the differences in the macroeconomic performance of the euro counties are declining (convergence or increasing (divergence.

Financial stability and monetary policy -The case of Brazil

Directory of Open Access Journals (Sweden)

Benjamin M. Tabak

2013-12-01

Full Text Available This paper seeks to examine the effects of monetary policy over banks' loans growth and whether there is a bank lending channel operating in Brazil. Therefore, we employ a detailed high frequency panel data in which we include bank characteristics and ownership control. We contribute to the literature on bank lending channel by showing that during periods of loosening/tightening monetary policy, banks increase/decrease their loans. Additionally,our results illustrate that large, well-capitalized and liquid banks react differentially to the effects of monetary policy shocks. Finally, we show that the impact of monetary policy differs across state-owned, foreign and private domestic banks. These results are important for developing and conducting monetary policy.

The Formation of New Monetary Policies: Decisions of Central Banks on the Great Recession

Directory of Open Access Journals (Sweden)

Ana Esther Castro

2014-05-01

Full Text Available The effect that the Great Recession had on monetary policies has led to the profound reorientation of central banks’ actions from 2007 to 2013. The purpose of this work is to analyze the monetary policies applied by the main central banks, mainly the European Central Bank, the Federal Reserve System of USA and the Bank of Japan, in order to raise thoughts on the guidelines that central banks should follow in the future. In the first section the bases of monetary policy before the crisis are described; in the second we explain the change in the orientation of the role of central banks during the crisis; and finally, we synthesize the bases on which the economic debate is taking place on the orientation of future monetary policies. We conclude that, in so far as the inoperativeness of transmission mechanisms still persists, monetary policies will remain in a process of change.

Monetary and Fiscal Policy Interactions and Limitations: The Need ...

African Journals Online (AJOL)

Lwati: A Journal of Contemporary Research ... This 'divorce' of monetary and debt management functions calls for the need for effective coordination of monetary and fiscal policy if overall economic ... Therefore an appropriate combination of monetary and fiscal policy mix is crucial for macroeconomic management.

Monetary and Fiscal Policy Coordination

OpenAIRE

Hanif, Muhammad N.; Arby, Muhammad Farooq

2003-01-01

Macroeconomic policies are meant to achieve non-inflationary, stable growth. There are two major groups of policy instruments to achieve the purpose; one is related to monetary conditions and the other to fiscal conditions. Monetary instruments are employed by the central bank and fiscal instruments are employed by ministry of finance. The objectives and implications of policy measures taken by the two institutions often conflict with each other and thus call for policy coordination for effec...

System convergence in transport models: algorithms efficiency and output uncertainty

DEFF Research Database (Denmark)

Rich, Jeppe; Nielsen, Otto Anker

2015-01-01

of this paper is to analyse convergence performance for the external loop and to illustrate how an improper linkage between the converging parts can lead to substantial uncertainty in the final output. Although this loop is crucial for the performance of large-scale transport models it has not been analysed...... much in the literature. The paper first investigates several variants of the Method of Successive Averages (MSA) by simulation experiments on a toy-network. It is found that the simulation experiments produce support for a weighted MSA approach. The weighted MSA approach is then analysed on large......-scale in the Danish National Transport Model (DNTM). It is revealed that system convergence requires that either demand or supply is without random noise but not both. In that case, if MSA is applied to the model output with random noise, it will converge effectively as the random effects are gradually dampened...

The convergent LEP and SPS control systems

International Nuclear Information System (INIS)

Altaber, J.

1987-01-01

The major design contraint of the control system for LEP is the compatibility with the existing SPS control system. The first reason for this compatibility is to allow a long term convergence of the SPS control system towards the LEP one. The second reason is to operate both LEP and SPS machines from a unique main control room. The distributed architecture of LEP and the existing SPS control systems are described. The design of the equipment interface for both machines is explained. Finally, the infrastructure of the common main control room for LEP and SPS is described

An Historical Analysis of Monetary Policy Rules

OpenAIRE

John B. Taylor

1998-01-01

This paper examines several episodes in U.S. monetary history using the framework of an interest rate rule for monetary policy. The main finding is that a monetary policy rule in which the interest rate responds to inflation and real output more aggressively than it did in the 1960s and 1970s, or than during the time of the international gold standard, and more like the late 1980s and 1990s, is a good policy rule. Moreover, if one defines rule, then such mistakes have been associated with eit...

46 CFR 506.3 - Civil monetary penalty inflation adjustment.

Science.gov (United States)

2010-10-01

... 46 Shipping 9 2010-10-01 2010-10-01 false Civil monetary penalty inflation adjustment. 506.3... PENALTY INFLATION ADJUSTMENT § 506.3 Civil monetary penalty inflation adjustment. The Commission shall... each civil monetary penalty provided by law within the jurisdiction of the Commission by the inflation...

32 CFR 269.3 - Civil monetary penalty inflation adjustment.

Science.gov (United States)

2010-07-01

... 32 National Defense 2 2010-07-01 2010-07-01 false Civil monetary penalty inflation adjustment. 269... DEFENSE (CONTINUED) MISCELLANEOUS CIVIL MONETARY PENALTY INFLATION ADJUSTMENT § 269.3 Civil monetary penalty inflation adjustment. The Department shall, not later than 180 days after the enactment of the...

The Assessment of Accommodation and Convergence System in the Bank Employees

Directory of Open Access Journals (Sweden)

Monireh Mahjoob

2013-02-01

Full Text Available Background: Regarding the high outbreak rate of the eye disorders and problems particularly accommodation disorders and convergence insufficiency in computer users, the study tries to determine the convergence, accommodation system, condition, fusion reserves and vision dimension in bank employees (who work with computers and the control group (who are not computer users and then to compare the mentioned parameters in the two groups. Materials and Methods: In this cross-sectional and observational study a total of 44 bank employees and 44 people as the control group members were selected randomly. Initially, refractive problems were reformed, and then accommodation, convergence and vision dimension evaluative tests were conducted. The test included measuring the near point of convergence, jump convergence, phoria, accommodation range (one eye, both eyes, ease of accommodation (one eye, both eyes, positive and negative related accommodation, near fusion versions and TNO.Results: Our results showed that there was a not significant difference among the near point of convergence, jump convergence, near phoria, accommodation range (one eye and both eyes, ease of accommodation (one eye, both eyes, positive and negative related accommodation in bank employees and control group.Conclusion: Regarding the studies, the outbreak rate of accommodation and convergence disorders is higher in bank employees than the control group which would be due to over working with computer within a fixed interval.

Global Implications of Self-Oriented National Monetary Rules

OpenAIRE

Maurice Obstfeld; Kenneth Rogoff

2003-01-01

It is well known that if international linkages are relatively small, the potential gains to international monetary policy coordination are typically quite limited. But what if goods and financial markets are tightly linked? Is it then problematic if countries unilaterally design their institutions for monetary stabilization? Are the stabilization gains from having separate currencies largely squandered in the absence of effective international monetary coordination? We argue that under p...

EFFECTS OF MONETARY POLICY IN ROMANIA - A VAR APPROACH

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Iulian Popescu

2012-10-01

Full Text Available Understanding how monetary policy decisions affect inflation and other economic variables is particularly important. In this paper we consider the implications of monetary policy under the inflation targeting regime in Romania, based on an autoregressive vector method including recursive VAR and structural VAR (SVAR. Therefore, we focus on assessing the extent and persistence of monetary policy effects on gross domestic product (GDP, price level, extended monetary aggregate (M3 and exchange rate. The main results of VAR analysis reflect a negative response of consumer price index (CPI, GDP and M3 and positive nominal exchange rate behaviour to a monetary policy shock, and also a limited impact of a short-term interest rate shock in explaining the consumer prices, production and exchange rate fluctuations.

Japan's approach to monetary policy

OpenAIRE

Giovanni P. Olivei

2002-01-01

The goal of monetary policy as conducted by the Bank of Japan is to contribute to the sound development of the national economy through the pursuit of price stability. The objective of price stability, however, is not precisely defined as it has been for other central banks. Following the implementation of the new Bank of Japan Law in 1998, the monetary policy framework is characterized by central bank independence, the primacy of the price stability objective, instrument independence, and po...

MONETARY TRANSMISSION CHANNELS IN FLEXIBLE MONETARY AND EXCHANGE RATE REGIMES: THE CASE OF SELECTED TRANSITION ECONOMIES

OpenAIRE

JOSIFIDIS, Kosta; PUCAR, Emilija Beker; SUPIĆ, Novica

2010-01-01

The paper explores selected monetary transmission channels in the case of transition economies. Namely, an exchange rate channel, an interest rate channel, direct and indirect influence to an exchange rate, are focused. Specific (former) transition economies are differentiated according the combination of implemented monetary and exchange rate regimes: exchange rate as a nominal anchor and rigid exchange rate regimes, exchange rate as a nominal anchor and intermediate exchange rate regimes, a...

The Effects of Corruption in a Monetary Union

OpenAIRE

Garcia Fortuny, Judit

2015-01-01

Many countries around the world suffer from corruption. In a monetary union, corruption varies from one country to another. It is possible corruption in one country may affect another country in a monetary union. We demonstrate that this feature has important implications in a monetary union with two asymmetric countries. Country 1 has a corrupted government while country 2 does not. Within this framework, we determine under which conditions corruption damages or benefits both countr...

Monetary transmission and bank lending in Germany

NARCIS (Netherlands)

Kakes, Jan; Sturm, Jan-Egbert; Philipp Maier, [No Value

1999-01-01

This paper analyses the role of bank lending in the monetary transmission process in Germany. We follow a sectoral approach by distinguishing corporate lending and household lending. We find that banks respond to a monetary contraction by adjusting their securities holdings, rather than reducing

Applied economics: The use of monetary incentives to modulate behavior.

Science.gov (United States)

Strang, S; Park, S Q; Strombach, T; Kenning, P

2016-01-01

According to standard economic theory higher monetary incentives will lead to higher performance and higher effort independent of task, context, or individual. In many contexts this standard economic advice is implemented. Monetary incentives are, for example, used to enhance performance at workplace or to increase health-related behavior. However, the fundamental positive impact of monetary incentives has been questioned by psychologists as well as behavioral economists during the last decade, arguing that monetary incentives can sometimes even backfire. In this chapter, studies from proponents as well as opponents of monetary incentives will be presented. Specifically, the impact of monetary incentives on performance, prosocial, and health behavior will be discussed. Furthermore, variables determining whether incentives have a positive or negative impact will be identified. © 2016 Elsevier B.V. All rights reserved.

Monetary valuation of environmental goods, services and impacts: variability of monetary values. Seminar proceedings of December 10, 2014

International Nuclear Information System (INIS)

Bonnet, Xavier; Ben Maid, Atika; Calvet, Melanie; Darses, Ophelie; Devaux, Jeremy; Simon, Olivier; Gatier, Alexis; Wittmann, Anne-laure; Bonnet, Xavier; Bonroy, Olivier; Ceci-Renaud, Nila; Tarayoun, Tedjani; Mercadie, Corinne; Adam, Gabrielle; Perrissin Fabert, Baptiste; Combet, Emmanuel; Casset, Loic; Meunier, David; Le Maitre, Helene; Brunel, Julien; Rotillon, Gilles

2015-06-01

Within the General Commission for Sustainable Development, the Service for Economics, Assessment and Integration of Sustainable Development is in charge of developing and promoting the economic valuation of policies, regulations, environmental goods and services, related to biodiversity, natural assets and environmental amenities. On December 10, 2014, it held the fifth annual seminar on monetary valuation of environmental goods, services and impacts. The first four editions respectively were devoted to economic valuation methods of environmental goods and services, implementations of these methods, uses of monetary values and methodological innovations; the 2014 seminar addressed the variability of monetary values. The ten presentations of the seminar explored the different values resulting from monetary valuation methods: what do they mean? What do they measure? Why are they relevant to integrate environmental valuation in the various economic sectors? From both a theoretical and practical point of view, theses questions were addressed by considering three main topics: the integration of environmental value in market prices, the different meanings of carbon values and the temporal variability of values used in assessment of investment projects in the transport sector. Those conferences are aimed for experts and practitioners of monetary valuation techniques as well as for users of the values produced. They provide a place to gather and facilitate dialogue between representatives from universities, government agencies and private sector involved in these issues. (authors)

THE MONETARY POLICY TRANSMISSION MECHANISM THROUGH INTEREST RATE. EMPIRICAL ANALYSIS: ROMANIA

OpenAIRE

Gabriel Bistriceanu

2008-01-01

Understanding monetary policy transmission is necessary to moentary policy projection and implementation of monetary policy in a efficient manner. I consider that interest rate monetary policy mechanism is very important because the interest rate is now the main instrument used by the majority of central banks in the world in taking monetary policy decissions and by all central banks wich have inflation targeting strategy. In this paper, I analysed monetary policy transmission mechanism throu...

Essays in empirical finance and monetary policy

NARCIS (Netherlands)

van Holle, Frederiek

2017-01-01

This dissertation consists of three essays. In the first paper, “Stock-Bond Correlations, Macroeconomic Regimes and Monetary Policy”, we link the evolution of stock-bond correlations for an international sample to both local and global regimes in inflation, the output gap and monetary policy. We

Elastic Labour Supply and Home Production in a Monetary Growth Model

Directory of Open Access Journals (Sweden)

Wei-Bin Zhang

2011-10-01

Full Text Available This study constructs a monetary gender growth model with capital accumulation and endogenous labour supply. The real aspects of the model are based on the neoclassical growth theory and monetary aspects of the model are based on the cash-in-advance (CIA approach. We show that the dynamics of the economy can be described by 2-dimensional differential equations. We simulate equilibrium and motion of the economy with specified monetary policies, household preference and technology. As the monetary economic system is unstable, the economy may either experience unlimited growth or economic crisis. We also study effects of changes in some parameters on the economic equilibrium. For instance, as the woman raises her propensity to stay at home, the capital intensity is not affected, which results in that the wage rates, the rate and output level per unit of labour input are not affected. Nevertheless, the man increases his work time and the woman reduces her work time, resulting in the fall of the labour supply. The money holing, durable goods used at home and consumption level per household are reduced; also the total wealth, total capital inputs, total durable goods and total output levels are reduced.

Measuring exchange market pressure in South Africa: an application of the Girton-Roper monetary model

Directory of Open Access Journals (Sweden)

Emmanuel Ziramba

2013-02-01

Full Text Available The monetary approach to the balance of payments is based on the assumption of a fixed exchange rate, while its approach to exchange rate determination is based on perfectly flexible exchange rate. Another monetary model called the Exchange Market Pressure model (EMP was designed to capture the properties of the managed float. This paper applies the monetary model of the EMP to the South African experience with floating exchange rate and managed float systems over the period 1970-1993. We show that the EMP model is superior to the traditional monetary approach. We do not find evidence of the impact of domestic real income on EMP. Diagnostic tests suggest that the model is well specified and the residuals pass the typical checking.

Agriculture, health, and wealth convergence: bridging traditional food systems and modern agribusiness solutions.

Science.gov (United States)

Dubé, Laurette; Webb, Patrick; Arora, Narendra K; Pingali, Prabhu

2014-12-01

The causes of many vexing challenges facing 21st-century society are at the nexus of systems involved in agriculture, health and wealth production, consumption, and distribution. Using food as a test bed, and on the basis of emerging roadmaps that set achievable objectives over a 1- to 3-year horizon, we introduce this special feature with convergence thinking and practice at its core. Specifically, we discuss academic papers structured around four themes: (1) evidence for a need for convergence and underlying mechanisms at the individual and societal levels; (2) strategy for mainstreaming convergence as a driver of business engagement and innovation; (3) convergence in policy and governance; (4) convergence in metrics and methods. Academic papers under each theme are accompanied by a roadmap paper reporting on the current status of concrete transformative convergence-building projects associated with that theme. We believe that the insights provided by these papers have the potential to enable all actors throughout society to singly and collectively work to build supply and demand for nutritious food, in both traditional and modern food systems, while placing the burdens of malnutrition and ill health on their core strategic agendas. © 2014 New York Academy of Sciences.

Guardando al futuro del Sistema Monetario Internazionale (Looking to the Future International Monetary System

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Carlo D'Adda

2012-04-01

Full Text Available Questo articolo passa brevemente in rassegna diversi argomenti che riguardano il funzionamento del Sistema Monetario Internazionale dopo il 1971, quali cambi flessibili e cambi fissi, aree monetarie ottime, crescenti movimenti di capitali, volatilità dei cambi, crisi valutarie, disavanzo esterno degli Stati Uniti. Pur in assenza di un disegno a priori, la successione di questi problemi ha preparato la strada alla recente proposta di Mundell e Cooper per una moneta mondiale.Questa proposta non costituisce una semplice via d’uscita dalle odierne preoccupazioni. Nondimeno essa lascia intravedere la possibilità di un futuro migliore.     This article briefly reviews various issues concerning the functioning of the International Monetary System after 1971, such as flexible exchange rates and fixed exchange rates, optimal currency areas, increasing capital movements, exchange rate volatility, currency crises, external deficit of the United States. Even in the absence of an a priori design, the sequence of these problems has paved the way to the recent proposal of Mundell and Cooper for a world currency. This proposal is not a simple way out of today's concerns. Nevertheless, it suggests the possibility of a better future.  JEL Codes: F30, F33Keywords: Sistema Monetario Internazionale, Mundell, Cooper, moneta mondiale.

The role of EU institutions in implementing its monetary policy

Directory of Open Access Journals (Sweden)

Emilia GEORGIEVA

2011-06-01

Full Text Available The main goal of the current article is to illustrate in detail the powers of the EU institutions to implement its monetary policy. The methods used to explore the topic and to draw the conclusions and interpret the findings are based on deduction and induction. On the grounds of the information presented in the article the following conclusions have been drawn: the relations between the EU institutions responsible for implementing its monetary policy (the European Central Bank, the European Parliament, the Council, the European Commission and others are entirely based on fundamental principles laid down for all its institutions; the commitments of the institutions implementing the EU monetary policy are strictly stipulated in its primary legislation and are mostly related to the establishment of the EU Economic and Monetary Union, the framing, planning and implementing of the common monetary policy, the management of the Monetary Union. In the conditions of world financial and economic crisis the EU has attempted to respond adequately to its monetary policy problems, commensurate with the scope and matching the specific nature of this crisis.

Monetary Transmission and Asset - Liability management by financial institutions in transitional economies - implications for czech monetary policy

OpenAIRE

Derviz, Alexis

2000-01-01

The paper deals with the transmission of monetary policy within the financial sector. The objective is to link an optimizing stochastic model of portfolio decisions by a representative financial institution with a number of features that this optimizing behavior implies for monetary transmission and credit conditions in a transitional economy. The main example is the intermediation performance of Czech financial sector in the years 1993 to 1999.

Indicator Accuracy and Monetary Policy: Is Ignorance Bliss?

OpenAIRE

Nimark, Kristoffer P.

2003-01-01

This paper argues that assuming a common information set shared by the public and the central bank may be inappropriate when one is concerned with the value of information itself. Specifically, we argue that it may lead one to draw the conclusion that monetary policy do not benefit from accurate real time data. This paper sets up a New-Keynesian model with optimal discretionary monetary policy, where we allow for partial and diverse information. The model is used to show that monetary policy ...

Monetary Policy Implications of Electronic Money

OpenAIRE

Berentsen, Aleksander

1997-01-01

The term digital money refers to various proposed electronic payment mechanisms designed for use by consumers to make retail payments. Digital money products have the potential to replace central bank currency, thereby affecting the money supply. This paper studies the effect of replacing central bank currency on the narrowly defined stock of money under various assumptions regarding regulatory policies and monetary operations of central banks and the reaction of the banking system.

The Monetary Policy – Restrictive or Expansive?

Directory of Open Access Journals (Sweden)

Adam Szafarczyk

2007-10-01

Full Text Available The monetary policy plays an important role in macroeconomic policy of government. There is a question concerning type of this policy expansive or restrictive (easy or tidy monetary policy. Unfortunately, we have a lot of criteria. Each of them gives us other answer. So due to equitation of Irving Fisher we have dominantly expansive monetary policy. This same situation exists when we use nominal value of rediscount interest rate of central bank. Opposite result appears when we use real value of this interest rate or level of obligatory reserve. Taking under consideration liquidity on money market we know, that level of interest rate is too high.

Expectations, Bond Yields and Monetary Policy

DEFF Research Database (Denmark)

Chun, Albert Lee

2011-01-01

expectations about inflation, output growth, and the anticipated path of monetary policy actions contain important information for explaining movements in bond yields. Estimates from a forward-looking monetary policy rule suggest that the central bank exhibits a preemptive response to inflationary expectations...... of this type may provide traders and policymakers with a new set of tools for formally assessing the reaction of bond yields to shifts in market expectations...

Monetary shocks and stock returns: identification through the impossible trinity

OpenAIRE

Ali K. Ozdagli; Yifan Yu

2012-01-01

This paper attempts to identify how monetary policy shocks affect stock prices by using Mundell and Fleming's theory of the "Impossible Trinity." According to this theory, it is impossible to simultaneously have a fixed exchange rate, free capital movement (an absence of capital controls), and an independent monetary policy. The authors present evidence that Hong Kong's monetary policy is heavily dependent on the monetary policy of the United States, a stance which is consistent with this the...

Monetary Policy Shocks and Stock Returns Reactions: Evidence ...

African Journals Online (AJOL)

SIPHAMBE, H.K. (PROF.)

context is useful to both monetary authorities and investors. ... they should target stock prices or use stock price information as indicators of the monetary ... current account transactions, with remaining controls on the capital account eliminated ...

ANALIZA INTERACȚIUNII INDICATORILOR MONETARI ȘI DE CREDIT ÎN ECONOMIA REPUBLICII MOLDOVA

Directory of Open Access Journals (Sweden)

Tudor SULA

2017-08-01

Full Text Available În scopul eficientizării activității sistemului de credit și activizării creditării investiționale a sectorului real al econo­miei Republicii Moldova, în baza datelor statistice a fost efectuată analiza dinamicii și structurii masei monetare, inclu­siv a interacțiunii indicatorilor monetari și de credit, precum și a factorilor care influențează asupra evoluției indicatorilor monetari și de credit pe parcursul perioadei 2005-2016. Astfel, pentru eficientizarea activității sistemului de credit al Republicii Moldova la etapa actuală este necesară promovarea unei politici monetare bazate pe corelarea și ajustarea indicatorilor macroeconomici, monetari și de credit; pentru atingerea obiectivelor politicii monetare, sunt necesare noi abordări și practici internaționale, inclusiv cele recomandate de organizațiile financiare internaționale privind îmbunătă­țirea supravegherii prudențiale; Banca Națională a Moldovei urmează să efectueze o conlucrare mai eficientă cu Guvernul Republicii Moldova pentru asigurarea suficientă cu resurse investiționale a necesităților sectorului real al economiei.ANALYSIS OF THE INTERACTION BETWEEN THE MONETARY AND CREDITING INDICATORS IN MOLDOVA'S ECONOMYIn order to streamline the activity of the credit system and activate the investment crediting of the real sector of the economy of the Republic of Moldova, on the basis of statistical data, there was performed an analysis of the dynamics and the structure of money supply, including the analysis of the interaction between the monetary and crediting indicators, as well as of factors influencing on the evolution of monetary and crediting indicators during the period 2005-2016. Thus, in order to streamline the activity of the credit system of the Republic of Moldova at present, it is necessary to promote a monetary policy based on the correlation and adjustment of the macroeconomic, monetary and credit indicators; to achieve the

Monetary policy and bank behavior: Empirical evidence from India

OpenAIRE

Ghosh, Saibal

2006-01-01

The paper develops an empirical model to explore the role that bank characteristics play in influencing the monetary transmission process. Employing data on Indian commercial banks for the period 1992-2004, the findings indicate that for banks classified according to size and capitalization, a monetary contraction lowers bank lending, although large and well-capitalized banks are able to shield their loan portfolio from monetary shocks.

Beurteilung der Wirksamkeit und mögliche Risiken der aktuellen Geldpolitik des Eurosystems. Assessment of effectiveness and potential risks of the Eurosystems recent monetary policy

Directory of Open Access Journals (Sweden)

Armin Rohde

2015-12-01

Full Text Available In the present article effectiveness and potential risks of recently implemented non-conventional monetary policy measures by the Eurosystem are discussed. The goal of research is to show that an additional use of non-conventional monetary policy measures is meaningless to stimulate lending behaviour of the banking system in the Euro-area. At the background of the state of conventional monetary policy today, which in short is characterized by unlimited and free of charge allotment possibilities of central bank money to monetary financial institutions, there exist no monetary policy restrictions which prevent lending behaviour of the banking system. So alternative intentions of the European Central Bank are discussed in this article, why non-conventional monetary policy measures had been implemented. In this context it is shown, that the use of single non-conventional monetary policy measures as well as the whole arrangements of the recently very expansive monetary policy involve considerable potential risks, which can inflict severe problems to monetary policy in the future.

Conquering Credibility for Monetary Policy Under Sticky Confidence

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Jaylson Jair da Silveira

2015-06-01

Full Text Available We derive a best-reply monetary policy when the confidence by price setters on the monetary authority’s commitment to price level targeting may be both incomplete and sticky. We find that complete confidence (or full credibility is not a necessary condition for the achievement of a price level target even when heterogeneity in firms’ price level expectations is endogenously time-varying and may emerge as a long-run equilibrium outcome. In fact, in the absence of exogenous perturbations to the dynamic of confidence building, it is the achievement of a price level target for long enough that, due to stickiness in the state of confidence, rather ensures the conquering of full credibility. This result has relevant implications for the conduct of monetary policy in pursuit of price stability. One implication is that setting a price level target matters more as a means to provide monetary policy with a sharper focus on price stability than as a device to conquer credibility. As regards the conquering of credibility for monetary policy, it turns out that actions speak louder than words, as the continuing achievement of price stability is what ultimately performs better as a confidence-building device.

The Influence Of Monetary And Non-Monetary Poverty Of Economically Active People’s Households On Job Satisfaction

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Vyacheslav Nikolaevich Bobkov

2014-12-01

Full Text Available The main aim of this paper is to reveal the relationship between poverty of economically active people’s households (monetary and non-monetary and job satisfaction of workers from these households. Thus, the object of the study is economically active population in Russia and the subject — peculiarities of its poorest part’s attitude towards career. The study of the empirical side of the object in Russia is conducted on RLMS data, using pooled samples of its 21st wave (November-December 2012. The entire set of working individuals is divided into strata on the basis of per capita income or deprivation experienced by their households. Then we conduct a statistical study of job satisfaction of employees from these strata, with a special emphasis on the poorest stratum. During our study we compute the correlation coefficients, carry out a frequency analysis and t-tests for independent samples, construct contingency tables and calculate mean values. On the basis of these calculations, some conclusions about the degree of influence of monetary and non-monetary poverty on job satisfaction in Russia are made. The paper concludes with a number of recommendations aimed at reducing household poverty while improving job satisfaction of the economically active people living in poor households of Russia

Monetary policy, bank size and bank lending: Evidence from Australia

OpenAIRE

Liu, Luke

2011-01-01

The transmission of monetary policy may hold the key to explaining the effects of policy on the economy. The objective of the study is to assess the importance of the bank lending channel in the transmission of monetary policy in Australia. In this paper, we found that the effectiveness of monetary policy varies with the size of the bank as well as the type of the loan. For different asset size and different kinds of loans, the effect of monetary policy is different. Thus, policy has distribu...

Fast convergent frequency-domain MIMO equalizer for few-mode fiber communication systems

Science.gov (United States)

He, Xuan; Weng, Yi; Wang, Junyi; Pan, Z.

2018-02-01

Space division multiplexing using few-mode fibers has been extensively explored to sustain the continuous traffic growth. In few-mode fiber optical systems, both spatial and polarization modes are exploited to transmit parallel channels, thus increasing the overall capacity. However, signals on spatial channels inevitably suffer from the intrinsic inter-modal coupling and large accumulated differential mode group delay (DMGD), which causes spatial modes de-multiplex even harder. Many research articles have demonstrated that frequency domain adaptive multi-input multi-output (MIMO) equalizer can effectively compensate the DMGD and demultiplex the spatial channels with digital signal processing (DSP). However, the large accumulated DMGD usually requires a large number of training blocks for the initial convergence of adaptive MIMO equalizers, which will decrease the overall system efficiency and even degrade the equalizer performance in fast-changing optical channels. Least mean square (LMS) algorithm is always used in MIMO equalization to dynamically demultiplex the spatial signals. We have proposed to use signal power spectral density (PSD) dependent method and noise PSD directed method to improve the convergence speed of adaptive frequency domain LMS algorithm. We also proposed frequency domain recursive least square (RLS) algorithm to further increase the convergence speed of MIMO equalizer at cost of greater hardware complexity. In this paper, we will compare the hardware complexity and convergence speed of signal PSD dependent and noise power directed algorithms against the conventional frequency domain LMS algorithm. In our numerical study of a three-mode 112 Gbit/s PDM-QPSK optical system with 3000 km transmission, the noise PSD directed and signal PSD dependent methods could improve the convergence speed by 48.3% and 36.1% respectively, at cost of 17.2% and 10.7% higher hardware complexity. We will also compare the frequency domain RLS algorithm against

The Monetary Effect of Power: How Perception of Power Affects Monetary Value Judgments in China and US

OpenAIRE

Qian Yang; Kaiping Peng; Xueya Zhou; Ruoqiao Zheng; Wanhua Peng

2013-01-01

Previous research has found a positive correlation between the perception of power and the perception of a number of social attributes (e.g., attractiveness, height, personality traits), but most of the studies were conducted in the US, and none has investigated the relationship between power perception and monetary value judgments. The current study found dramatic differences between Americans and Chinese on value estimations; the Chinese seem to perceive much higher monetary values for all ...

Econometric Assessment of the Degree of Economic Convergence between Member States of the European Union

Directory of Open Access Journals (Sweden)

Elena Mădălina OPRIȚESCU

2017-11-01

Full Text Available One of the important objectives of the European Union is to support economic growth based on economic, social and territorial cohesion between Member States. Due to the accession of relatively poor countries to the European Union, maintaining cohesion is and will remain a major challenge, with cohesion policy having to support the reduction of imbalances between the old Member States and also support the development of less developed regions. One of the main measures adopted by the European authorities emphasizes the importance of increasing the degree of economic convergence between Member States by promoting a common market along with an economic and monetary union. In addition, increasing productivity and convergence within the EU are the foundations of the Lisbon Strategy and remain an important pillar of the Europe 2020 Growth Strategy.

MONETARY POLICY FORCE EFFECT BY MEANS OF BANKS MONEY CREATION

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Victoria COCIUG

2014-07-01

Full Text Available In the context of modern economy, banks play an essential role for sustainable growth, by ensuring economy with financial resources and driving impulses of monetary policy to economy. Monetary authorities influence significantly the bank's ability to fulfill this role. Thus, to achieve macroeconomic objectives, there is promoted particular monetary policy and are implemented various practical regulations for banks. In this article, we want to identify the existing relationship between monetary policy followed by the authorities and the ability of banks to create money with its impact on various practical regulations.

U.S. monetary shocks and global stock prices

NARCIS (Netherlands)

Laeven, L.; Tong, H.

2012-01-01

This paper studies how US monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in US interest rates, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening). This impact is more pronounced for sectors that

The Assessment of Accommodation and Convergence System in the Bank Employees

OpenAIRE

Monireh Mahjoob; Abbas Azimi-Khorasani; Hamed Momeni-Moghadam; Masoud Raeisi; Jalil Nejati

2013-01-01

Background: Regarding the high outbreak rate of the eye disorders and problems particularly accommodation disorders and convergence insufficiency in computer users, the study tries to determine the convergence, accommodation system, condition, fusion reserves and vision dimension in bank employees (who work with computers) and the control group (who are not computer users) and then to compare the mentioned parameters in the two groups. Materials and Methods: In this cross-sectional and observ...

32 CFR 269.4 - Cost of living adjustments of civil monetary penalties.

Science.gov (United States)

2010-07-01

... 32 National Defense 2 2010-07-01 2010-07-01 false Cost of living adjustments of civil monetary... DEFENSE (CONTINUED) MISCELLANEOUS CIVIL MONETARY PENALTY INFLATION ADJUSTMENT § 269.4 Cost of living... increasing the maximum civil monetary penalty for each civil monetary penalty by the cost-of-living...

The International Impact of US Unconventional Monetary Policy

DEFF Research Database (Denmark)

Lutz, Chandler

2015-01-01

Using a structural factor-augmented vector autoregression model and a large data set of daily time series, we study the impact of US unconventional monetary policy on British and German financial markets. Our findings indicate that a surprise US unconventional monetary policy easing leads...

76 FR 74625 - Civil Monetary Penalties Inflation Adjustment

Science.gov (United States)

2011-12-01

...-2011] RIN 1125-AA69 Civil Monetary Penalties Inflation Adjustment AGENCIES: U.S. Customs and Border... adjust for inflation certain civil monetary penalties assessed under the Immigration and Nationality Act... assessed under the INA. The Federal Civil Penalties Inflation Adjustment Act of 1990 (Adjustment Act...

Monetary union without fiscal coordination may discipline policymakers

NARCIS (Netherlands)

Beetsma, R.M.W.J.; Bovenberg, A.L.

1995-01-01

We show that, with benevolent policymakers and fiscal leadership, monetary unification reduces inflation, taxes and public spending. These disciplining effects of a monetary union, which rise with the number of fiscal players in the union, are likely to raise welfare. Joining an optimally designed

46 CFR 506.4 - Cost of living adjustments of civil monetary penalties.

Science.gov (United States)

2010-10-01

... 46 Shipping 9 2010-10-01 2010-10-01 false Cost of living adjustments of civil monetary penalties... MONETARY PENALTY INFLATION ADJUSTMENT § 506.4 Cost of living adjustments of civil monetary penalties. (a... penalty for each civil monetary penalty by the cost-of-living adjustment. Any increase determined under...

BOLD responses in reward regions to hypothetical and imaginary monetary rewards.

Science.gov (United States)

Miyapuram, Krishna P; Tobler, Philippe N; Gregorios-Pippas, Lucy; Schultz, Wolfram

2012-01-16

Monetary rewards are uniquely human. Because money is easy to quantify and present visually, it is the reward of choice for most fMRI studies, even though it cannot be handed over to participants inside the scanner. A typical fMRI study requires hundreds of trials and thus small amounts of monetary rewards per trial (e.g. 5p) if all trials are to be treated equally. However, small payoffs can have detrimental effects on performance due to their limited buying power. Hypothetical monetary rewards can overcome the limitations of smaller monetary rewards but it is less well known whether predictors of hypothetical rewards activate reward regions. In two experiments, visual stimuli were associated with hypothetical monetary rewards. In Experiment 1, we used stimuli predicting either visually presented or imagined hypothetical monetary rewards, together with non-rewarding control pictures. Activations to reward predictive stimuli occurred in reward regions, namely the medial orbitofrontal cortex and midbrain. In Experiment 2, we parametrically varied the amount of visually presented hypothetical monetary reward keeping constant the amount of actually received reward. Graded activation in midbrain was observed to stimuli predicting increasing hypothetical rewards. The results demonstrate the efficacy of using hypothetical monetary rewards in fMRI studies. Copyright © 2011 Elsevier Inc. All rights reserved.

Rules Versus Discretion in Monetary Policy

OpenAIRE

Stanley Fischer

1988-01-01

This paper examines the case for rules rather than discretion in the conduct of monetary policy, from both historical and analytic perspectives. The paper starts with the rules of the game under the gold standard. These rules were ill-defined and not adhered to; active discretionary policy was pursued to defend the gold standard -- but the gold standard came closer to a regime of rules than the current system. The arguments for rules in general developed by Milton Friedman are described mo ap...

Funny money: the attentional role of monetary feedback detached from expected value.

Science.gov (United States)

Roper, Zachary J J; Vecera, Shaun P

2016-10-01

Stimuli associated with monetary reward can become powerful cues that effectively capture visual attention. We examined whether such value-driven attentional capture can be induced with monetary feedback in the absence of an expected cash payout. To this end, we implemented images of U.S. dollar bills as reward feedback. Participants knew in advance that they would not receive any money based on their performance. Our reward stimuli-$5 and $20 bill images-were thus dissociated from any practical utility. Strikingly, we observed a reliable attentional capture effect for the mere images of bills. Moreover, this finding generalized to Monopoly money. In two control experiments, we found no evidence in favor of nominal or symbolic monetary value. Hence, we claim that bill images are special monetary representations, such that there are strong associations between the defining visual features of bills and reward, probably due to a lifelong learning history. Together, we show that the motivation to earn cash plays a minor role when it comes to monetary rewards, while bill-defining visual features seem to be sufficient. These findings have the potential to influence human factor applications, such as gamification, and can be extended to novel value systems, such as the electronic cash Bitcoin being developed for use in mobile banking. Finally, our procedure represents a proof of concept on how images of money can be used to conserve expenditures in the experimental context.

Macroeconomic Activity and Monetary Policy Actions: Some Preliminary Evidence.

OpenAIRE

Haslag, Joseph H; Hein, Scott E

1992-01-01

Monetary policy is conducted through open market operations, loans at the discount window, and changes in the reserve requirement structure. The purpose of this paper is to formally investigate the notion that the effect of changes in reserve requirement ratios is different from the effect of other policy tools. This is accomplished by decomposing the monetary base into those changes caused by changes in reserve requirement ratios and those caused by other monetary policy actions. Some prelim...

Monetary policy implications of financial innovation: In-depth analysis

OpenAIRE

Bernoth, Kerstin; Gebauer, Stefan; Schäfer, Dorothea

2017-01-01

In this policy brief, we argue that the financial innovations triggered by the FinTech industry have the potential to affect the transmission of monetary policy as well as the informational content of important monetary indicators. The growing FinTech industry could contribute substantially to the emergence of nonbank finance as a substitute for traditional commercial bank finance. While the overall effect of nonbank finance on monetary policy transmission is not yet clear, we argue that regu...

Interdependencies Between the Capital Market and the Monetary Policy Decisions

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Claudia Guni

2010-12-01

Full Text Available The declared scope of this work is to highlight the main correlations between the monetary and the capital market, including identifying the adequate objective of monetary policy which might positively influence over the offer on the capital market. The main target of the monetary market consists in the stability of the prices. The link between monetary policy and stock market is extremely important. The stock prices are sensible to economical conditions. Moreover, these prices rapidly change, thus there is a chance for a deviation from the fundamental value, with side-effects for economy.

Monetary transmission and bank lending in the Netherlands

NARCIS (Netherlands)

Kakes, Jan

1998-01-01

This paper investigates the role of bank lending in the monetary transmission process in the Netherlands. We observe significant differences between the responses of corporate and household lending following a monetary shock. We also find that banks hold a buffer stock of securities which they use

The Adoption of Indirect Instruments of Monetary Policy

OpenAIRE

Tomás J. T. Baliño; Charles Enoch; William E. Alexander

1995-01-01

This paper examines the experience of implementing indirect instruments of monetary policy. The experiences of country studies illustrate the variety of circumstances under which indirect instruments of monetary policy have been introduced. Case Studies are presented for Chile, Egypt, Ghana, Indonesia, Mexico, New Zealand, and Poland.

The History of Romania’s Relations with the International Monetary Fund

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Gheorghe Stefan

2011-02-01

Full Text Available The International Monetary Fund aims primarily at ensuring the stability of theinternational monetary system more specifically the international payment system which allowscountries and their citizens to buy, sell goods and services between them. This is essential forsustainable economic growth, improvement of life standards and reducing poverty all around theworld. The goals of Romania’s agreements with IMF subscribe these parameters, mostly the currentone, this being emphasized by the economic recession and the necessity of reducing fiscal imbalancein order to attain a deficit with normal values acceptable in the EU. These include: maintaining theinflation at the range aimed by RNB, ensuring a sufficient external financing and improvingcredibility, the attempt to amortize the effects of severe capital absorption and resolution forRomania’s external and fiscal imbalances and consolidation of the financial area.

Estimation of transmission mechanism of monetary policy in Serbia

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Bungin Sanja

2015-01-01

Full Text Available Transmission mechanism of monetary policy recently has been subject to several studies in Serbia. The so called 'black box' of monetary policy is investigated with aim to identify the effects of transmission channel in environment where exchange rate has a dominant role in central bank operations. Therefore, it is a challenge to approach this problem in inflation targeting regime where key interest rate is expected to prevail as a main policy instrument. The study employs unrestricted Vector Autoregression model for estimating significance of exchange rate and interest rate channel. As expected, exchange rate has far more stronger influence on inflation, even though there are some signs of interest rate channel existence. Introducing Euribor as endogenous variables in VAR system displayed important impact on real variables.

An oil demand and supply model incorporating monetary policy

International Nuclear Information System (INIS)

Askari, Hossein; Krichene, Noureddine

2010-01-01

Oil price inflation may have had a significant role in pushing the world economy into its worst post-war recession during 2008-2009. Reserve currency central banks pursued an overly expansionary monetary policy during 2001-2009, in the form of low or negative real interest rates and accompanied by a rapidly falling US dollar, while paying inadequate attention to the destabilizing effects on oil markets. In this paper, we show that monetary policy variables, namely key interest rates and the US dollar exchange rate, had a powerful effect on oil markets. World oil demand was significantly influenced by interest and dollar exchange rates, while oil supply was rigid. Oil demand and supply have very low price elasticity and this characteristic makes oil prices highly volatile and subject to wider fluctuations than the prices of other commodities. Aggressive monetary policy would stimulate oil demand, however, it would be met with rigid oil supply and would turn inflationary and disruptive to economic growth if there was little excess capacity in oil output. We argue that a measure of stability in oil markets cannot be achieved unless monetary policy is restrained and real interest rates become significantly positive. Monetary tightening during 1979-1982 might imply that monetary policy has to be restrained for a long period and with high interest rates in order to bring stability back to oil markets. (author)

Bank loan portfolios and the Canadian monetary transmission mechanism

NARCIS (Netherlands)

den Haan, W.J.; Sumner, S.W.; Yamashiro, G.M.

2009-01-01

Following a monetary tightening, bank loans to consumers decrease. This is true for both mortgage and non-mortgage loans, and it is true for a tightening by the Bank of Canada that is, and is not, a response to a tightening by the Federal Reserve System. In contrast, business loans increase

Statistical evaluation of the degree of nominal convergence of the inflation rate in Romania

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Mihai GHEORGHE

2011-07-01

Full Text Available Nominal convergence is a process that is characterised by the gradual harmonisation, to a relatively high degree, of the national institutions and policies of the Member States with those of the EU, in the monetary and financial fields.The birth of nominal convergence is marked by the Maastricht Treaty, by means of which the criteria required for adopting the euro were established. One of the criteria refers to price stability (inflation rate, which is measured by the Harmonised Index of Consumer Prices. A Member State meets this criterion if it has a price performance that is sustainable and an average rate of inflation, observed over a period of one year before the examination,that does not exceed by more than 1.5 percentage point that of, at most, the three best performing Member States in terms of price stability.The article proposes a model for the statistical evaluation of the degree to which the nominal convergence criterion related to price stability is met. The evaluation is based on the following pillars: a theoretical synthesis of the Harmonised Index of Consumer Prices, a statistical analysis concerning the evolution of inflation in Romania and the gap vis-à-vis the reference value for meeting the nominal convergence criterion.

The monetary policy of the European Central Bank in modern conditions

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Kavitskaya Irina, L.

2015-12-01

Full Text Available The paper presents the monetary policy analysis of the European Central Bank (ECB under the present crisis conditions. The paper systematizes the ECB monetary policy in today's crisis and researches it at different stages of the crisis. A detailed analysis showed that the ECB's monetary policy is significantly different from the actions of other central banks during the current crisis (for example, the Federal Reserve. Thus, the ECB unconventional monetary policy combined with traditional measures, but does not replace them. Often ECB use credit easing instead of quantitative easing. The ECB's monetary policy used not only to combat the financial crisis, such as the Fed, but also to deal with the debt crisis. These features of the ECB’s monetary policy were due to both the institutional characteristics of the European Union, as well as special conditions of flow of the financial crisis in the euro zone.

Divisia and Simple Sum Monetary Aggregates: Any Empirical Relevance for Turkey?

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Polat Umurcan

2018-01-01

Full Text Available In consideration of channels through which monetary policy affects economic activity, the monetary aggregates have been mostly ignored by the monetary authorities instead of which shortrun interest rates have been given a priori role. These monetary aggregates are largely argued to fail in measuring the effectiveness of different monetary policy regimes in forecasting the macroeconomic fundamentals. Grounded on the “Barnett critique”, the formation of traditional simple-sum monetary aggregates assuming for perfect substitution among the components of the money supply is blamed for such a failure of money in explaining the real activity. Given increasing varieties of financial assets which have completely different “moneyness”, it is important to provide an alternative measure of the money supply. Hereby, the Divisia monetary aggregates which give different weights to different assets have arisen as an alternative approach. In this study, a Divisia index is constructed to test its predictive power on quantities and prices compared to its simple sum counterpart. Accordingly, a Divisia index is built-up for Turkish economy for the period 2006-2016 to see whether the utilization of the Divisia monetary aggregates in the conduct of monetary policy makes any difference compared to that of traditional simple sum money supply. Under different specifications, though the relative power of the Divisia aggregates in predicting quantity and price variables is found, still, it can be argued that theoretically well-rounded formation of the Divisia index is not that much empirically justified for the case of Turkey.

The Convergence of European Business Cycles 1980--2004

Science.gov (United States)

Ormerod, P.

2005-09-01

The degree of convergence of the business cycles of the economies of the European Union is a key policy issue. In particular, a substantial degree of convergence is needed if the European Central Bank is to be capable of setting a monetary policy which is appropriate to the stage of the cycle of the Euro zone economies. I consider the annual rates of real GDP growth on a quarterly basis in the main economies of the EU (France, Germany, Italy, UK, Spain, Belgium and the Netherlands) over the period 1980Q1--2004Q4. An important empirical question is the degree to which the correlations between these growth rates contain true information rather than noise. The technique of random matrix theory is able to answer this question, and has been applied successfully in the physics journals to financial markets data. I find that the correlations between the growth rates of most of the core EU economies contain substantial amounts of true information, and exhibit considerable stability over time. Even in the late 1970s and early 1980s, these economies moved together closely over the course of the business cycle. There was a slight loosening at the time of German re-unification, but the economies have moved back into close synchronisation. The same result holds when Spain is added to the group of core EU countries. However, the problems of the German economy which arose from the early 1990s onwards has led to Germany becoming increasingly less synchronised with the rest of the core EU. Further, the results obtained with a data set of the converged EU core plus the UK show no real convergence between the UK and this group of economies.

Do non-monetary prices target the poor? Evidence from a field experiment in India

OpenAIRE

Hoffmann, Bridget

2016-01-01

This paper uses willingness to pay (WTP) data from a field experiment in Hyderabad, India in 2013 to determine whether non-monetary prices better target health products to the poor than monetary prices. Monetary WTP is increasing in income and non-monetary WTP is weakly decreasing in income. Household fixed effects in a pooled sample of monetary WTP and non-monetary WTP are used to compare the correlation of income and WTP across price types. It is found that non-monetary WTP falls relative t...

THE CONVERGENCE OF ROMANIA WITH THE EUROZONE IN TERMS OF FINANCIAL INSTITUTIONS

Directory of Open Access Journals (Sweden)

2015-07-01

Full Text Available This study examines the integration of Romanian monetary system into European one and the transmission of liquidity shocks from eurozone to Romanian monetary market. Since Romania become a member of European Union, most of the Romanian banks are mainly provided by financial institutions placed in Europe. With the accession of Romania to the European Union, has started a process of integration of the national banking system into the eurozone banking system and thus, domestic financial institutions has began to be increasingly more subject to liquidity conditions and external contagion liquidity risk in the eurozone. In some periods, between EU accession and until the beginning of 2014, Romania has managed to reduce the volatility of the daily rates of monetary policy, compared with the eurozone, where, in the same periods, were recorded high volatility of monetary policy interest rates. Partial decoupling of the two money markets can be explained by economic stabilization policies adopted by Romania by improving the liquidity of the financial institutions and national measures taken by monetary policy makers in Romania. The main conclusion of this study is that the domestic banking sector is only partially integrated in the European banking sector in terms of money market liquidity and liquidity risk, and creating a stable framework for liquidity in Romania requires a mix of fiscal and monetary policies conducive to the development of financial instruments in long-term. However, the analysis shows that the sensitivity of liquidity in the Romanian banks to adverse developments on the European money market has increased and the ability of the internal factors to predict the liquidity conditions in national banking institutions is still high. Considering these aspects, we can say that, when we analyze liquidity risk in the Romanian banking system, we must take into consideration the influence of the external factors.

Banks' risk appetite, heterogeneity and monetary policy: evidence ...

African Journals Online (AJOL)

The study examines the effects of bank heterogeneity on risk appetite under changing monetary policy stance of the monetary authority. The scope of the study covers the period 2005 to 2015 using data obtained from the published accounts of the affected banks and Central Bank of Nigeria (CBN) statistical bulletin, various ...

Monetary aggregate targeting and inflation in Nigeria | Adedoyin ...

African Journals Online (AJOL)

Abstract. In a capitalist economy, monetary aggregate policy instruments are normally employed by monetary authorities. ... To the financial analysts, if the direction of the volume of money supply into a given economy and the velocity and output of good and services remain constant, there is bound to be an impact on prices.

Chaotic dynamics in optimal monetary policy

Science.gov (United States)

Gomes, O.; Mendes, V. M.; Mendes, D. A.; Sousa Ramos, J.

2007-05-01

There is by now a large consensus in modern monetary policy. This consensus has been built upon a dynamic general equilibrium model of optimal monetary policy as developed by, e.g., Goodfriend and King [ NBER Macroeconomics Annual 1997 edited by B. Bernanke and J. Rotemberg (Cambridge, Mass.: MIT Press, 1997), pp. 231 282], Clarida et al. [J. Econ. Lit. 37, 1661 (1999)], Svensson [J. Mon. Econ. 43, 607 (1999)] and Woodford [ Interest and Prices: Foundations of a Theory of Monetary Policy (Princeton, New Jersey, Princeton University Press, 2003)]. In this paper we extend the standard optimal monetary policy model by introducing nonlinearity into the Phillips curve. Under the specific form of nonlinearity proposed in our paper (which allows for convexity and concavity and secures closed form solutions), we show that the introduction of a nonlinear Phillips curve into the structure of the standard model in a discrete time and deterministic framework produces radical changes to the major conclusions regarding stability and the efficiency of monetary policy. We emphasize the following main results: (i) instead of a unique fixed point we end up with multiple equilibria; (ii) instead of saddle-path stability, for different sets of parameter values we may have saddle stability, totally unstable equilibria and chaotic attractors; (iii) for certain degrees of convexity and/or concavity of the Phillips curve, where endogenous fluctuations arise, one is able to encounter various results that seem intuitively correct. Firstly, when the Central Bank pays attention essentially to inflation targeting, the inflation rate has a lower mean and is less volatile; secondly, when the degree of price stickiness is high, the inflation rate displays a larger mean and higher volatility (but this is sensitive to the values given to the parameters of the model); and thirdly, the higher the target value of the output gap chosen by the Central Bank, the higher is the inflation rate and its

Non-Standard Monetary Policies Implemented By The European Central Bank After The Financial Crisis

Directory of Open Access Journals (Sweden)

Meryem Filiz Baştürk

2017-07-01

Full Text Available The financial crisis which began in the U.S. in 2007 influenced all economies on a global scale followingthe collapse of Lehman Brothers in September 2008. As a response to the crisis, central banksstarted to implement non-standard monetary policy tools as well as short-term interest rates alsoknown as standard policy tools in order to help monetary policy transmission channels work effectively.The European Central Bank (ECB implemented non-standard monetary policies as in additionto the standard policy tools during this period. The non-standard monetary policies introducedby the ECB were different from those implemented by other central banks (Fed, Bank of England interms of implementation and results. Firstly, the policies of the ECB were not specific to one singlecountry. Secondly, the banking system was the major source of finance in Europe, which had an impacton the policies. In this regard, the ECB introduced a policy of enhanced credit support consistingof five main elements in order to maintain price stability over the medium term following the crisis.By 2010, public debt in some member countries of the European Union reached high levels, requiringthem to take additional measures. The Securities Markets Programme was introduced to that end.Initially focusing on the debt securities of Greece, Ireland, and Portugal, the Securities Markets Programmewas expanded in August 2011 to cover the debt securities of Italy and Spain. In addition, twoLong-term Refinancing Operations (LTROs were introduced. This article presents a descriptive analysisof the non-standard monetary policy tools introduced by the ECB following the financial crisis.However, the monetary policy implemented in the Euro zone is not specific to one single country, andevery country has a different financial structure, both of which limit the effectiveness of the policiesimplemented. The changing structure of the monetary policy implemented in the aftermath of the crisisaims to

European monetary union: limits to growth or bifurcation point

Directory of Open Access Journals (Sweden)

Oleksandr Sharov

2014-02-01

Full Text Available The paper presents the background and process of the EU monetary union establishment with regard to historical experience of European countries involving previous attempts of currency integration between separate countries. The author also analyzes methods of solving various theoretical and practical problems arising during the process. In particular, it is pointed out that the majority of the problems were caused by neglecting monetary integration principles, the need for observing which had been clearly stated yet at the preliminary stages of the integration process. Special emphasis is made on reviewing current development stage of the monetary union, in particular, with regard to problems caused by the financial crisis in "peripheral countries" of the Union as well as by concurrent intensification of cooperation in the field of banking and fiscal issues. In this context, the trends of further European monetary integration development are also considered. As resulted from analysis, the author concludes that the European Monetary Union had exhausted its energy for development along previously assigned trajectory and reached the bifurcation point, whereas its further improvement or gradual preservation and decline depend upon the direction in which the point is passed.

MONETARY AGGREGATES - INSTRUMENT OF THE POLICY PROMOTED BY THE NATIONAL BANK OF ROMANIA

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CORALIA EMILIA POPA

2012-12-01

Full Text Available A summary analysis of the economic theory and practice indicates the fact that the attempts to establish and delimit the importance of the economic-financial last resorts to the effects produced in macro and micro-economy have not lead to infallible truth. The goal of these last resorts is to organize an economic system in difficulty, to try to minimize its imperfections and non-functionalities. The society development has brought along the need to improve these attempts, so that together with other administrative methods to produce viable and productive solutions for the economy progress. This paper aims at emphasizing the advantages of using monetary aggregates, as well as their limitations under the direct influence of monetary factors, considering that these indicators are commonly used in many models of monetary analysis, especially in Neo-Keynesian ones.

Equilibrium Strategies in a Fiscal-Monetary Game : a Simulation Analysis

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Irena Woroniecka-Leciejewicz

2015-01-01

Full Text Available The results from a simulation analysis of the policy-mix have been presented, carried out in a fiscal-monetary game, in which fiscal and monetary authorities make decisions from the point of view of realizing their own respective economic objectives. In order to represent the interrelations between, on the one hand, the instruments of fiscal policy and of monetary policy, and, on the other hand - the economic effects resulting from their application, a modified logistic function was used. The method adopted enables consideration of the specificity of the effects of these instruments on the business cycle, consisting in the limited effectiveness of applying any extremely restrictive or expansive policy, and the respective impact on the economy. The simulation study was meant to show the influence exerted both by the parameters of the function and the priorities of the fiscal and monetary authorities on the Nash equilibrium state, corresponding to the choice of a particular combination of budgetary and monetary policies. (original abstract

MONETARY POLICY FORCE EFFECT BY MEANS OF BANKS MONEY CREATION

OpenAIRE

Victoria COCIUG; Olga TIMOFEI

2014-01-01

In the context of modern economy, banks play an essential role for sustainable growth, by ensuring economy with financial resources and driving impulses of monetary policy to economy. Monetary authorities influence significantly the bank's ability to fulfill this role. Thus, to achieve macroeconomic objectives, there is promoted particular monetary policy and are implemented various practical regulations for banks. In this article, we want to identify the existing relationship between monetar...

THE ROLE OF THE INTERNATIONAL MONETARY FUND IN PROMOTING GLOBAL ECONOMIC STABILITY

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Alina HAGIU

2017-12-01

Full Text Available This paper presents the role that the International Monetary Fund performs in promoting global economic stability. Global economic and financial stability plays a key role in the financial system and the economy as a whole. The increase in the importance of the concept of financial stability by supervisors at both European and global level was concretized by defining a framework for the operationalization of macroprudential policy, together with the establishment of coordination bodies in this field, thus recognizing its role in the mix of established economic policies such as monetary, fiscal or competitive policy.

MONETARY POLICY TRANSMISSION MECHANISM IN EMERGING COUNTRIES

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Andreea ROŞOIU

2013-06-01

Full Text Available The transmission channels of monetary policy are used by central banks to accomplish the main objective of price stability in the context of sustainable economic growth. The importance of interest rate and exchange rate channels for the emerging countries Romania, Poland, Czech Republic and Hungary is analyzed by using Bayesian VAR approach with Diffuse priors over 1998Q1-2012Q3. Main result of the empirical study is that both channels are effective for the monetary policy transmission mechanism in Hungary and Czech Republic. In Romania and Poland they do not exhibit puzzles, but the impact of the macroeconomic variables is not very significant and shows very high volatility. In the context of monetary integration, exchange rate channel will become irrelevant when these countries adopt Euro currency. This change will lead instead to a powerful interest rate channel.

Independent functional connectivity networks underpin food and monetary reward sensitivity in excess weight.

Science.gov (United States)

Verdejo-Román, Juan; Fornito, Alex; Soriano-Mas, Carles; Vilar-López, Raquel; Verdejo-García, Antonio

2017-02-01

Overvaluation of palatable food is a primary driver of obesity, and is associated with brain regions of the reward system. However, it remains unclear if this network is specialized in food reward, or generally involved in reward processing. We used functional magnetic resonance imaging (fMRI) to characterize functional connectivity during processing of food and monetary rewards. Thirty-nine adults with excess weight and 37 adults with normal weight performed the Willingness to Pay for Food task and the Monetary Incentive Delay task in the fMRI scanner. A data-driven graph approach was applied to compare whole-brain, task-related functional connectivity between groups. Excess weight was associated with decreased functional connectivity during the processing of food rewards in a network involving primarily frontal and striatal areas, and increased functional connectivity during the processing of monetary rewards in a network involving principally frontal and parietal areas. These two networks were topologically and anatomically distinct, and were independently associated with BMI. The processing of food and monetary rewards involve segregated neural networks, and both are altered in individuals with excess weight. Copyright © 2016 Elsevier Inc. All rights reserved.

Monetary policy and dynamic adjustment of corporate investment: A policy transmission channel perspective

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Qiang Fu

2015-06-01

Full Text Available We investigate monetary policy effects on corporate investment adjustment, using a sample of China’s A-share listed firms (2005–2012, under an asymmetic framework and from a monetary policy transmission channel perspective. We find that corporate investment adjustment is faster in expansionary than contractionary monetary policy periods. Monetary policy has a significant effect on adjustment speed through monetary and credit channels. An increase in the growth rate of money supply or credit accelerates adjustment. Both effects are significantly greater during tightening than expansionary periods. The monetary channel has significant asymmetry, whereas the credit channel has none. Leverage moderates the relationship between monetary policy and adjustment, with a greater effect in expansionary periods. This study enriches the corporate investment behavior literature and can help governments develop and optimize macro-control policies.

The Impact of Conventional and Unconventional Monetary Policy on Investor Sentiment

DEFF Research Database (Denmark)

Lutz, Chandler

2015-01-01

This paper examines the relationship between monetary policy and investor sentiment across conventional and unconventional monetary policy regimes. During conventional times, we find that a surprise decrease in the fed funds rate leads to a large increase in investor sentiment. Similarly, when...... the fed funds rate is at its zero lower bound, research results indicate that expansionary unconventional monetary policy shocks also have a large and positive impact on investor mood. Together, our findings highlight the importance of both conventional and unconventional monetary policy...... in the determination of investor sentiment....

Fiscal Deficits, Monetary Reform and Inflation Stabilization in Romania.

NARCIS (Netherlands)

van Wijnbergen, S.J.G.; Budina, N.

2001-01-01

Investigates the consistency between inflation, monetary reform and fiscal policy in Romania. Offers a framework for the assessment of the fiscal and monetary interactions of Romanian economy; Shows impact of inflation on fiscal inconsistency measure; Considers importance of consolidating public

The impact of monetary policy on New Zealand business cycles and inflation variability

OpenAIRE

Nathan McLellan; Robert A Buckle; Kunhong Kim

2004-01-01

This paper uses the open economy structural VAR model developed in Buckle, Kim, Kirkham, McLellan and Sharma (2002) to evaluate the impact of monetary policy on New Zealand business cycles and inflation variability and the output/inflation variability trade-off. The model includes a forward-looking Taylor Rule to identify monetary policy and the impact of monetary policy is evaluated by deriving a monetary policy index using a procedure suggested by Dungey and Pagan (2000). Monetary policy ha...

7 CFR 3.91 - Adjusted civil monetary penalties.

Science.gov (United States)

2010-01-01

... articles not for monetary gain), $275,000 in the case of any other person for each violation, and $550,000... violation of the AHPA by an individual moving regulated articles not for monetary gain, $275,000 in the case... and a maximum of $550. (3) Food and Nutrition Service. (i) Civil penalty for hardship fine in lieu of...

Neural markers of social and monetary rewards in children with Attention-Deficit/Hyperactivity Disorder and Autism Spectrum Disorder.

Science.gov (United States)

Gonzalez-Gadea, Maria Luz; Sigman, Mariano; Rattazzi, Alexia; Lavin, Claudio; Rivera-Rei, Alvaro; Marino, Julian; Manes, Facundo; Ibanez, Agustin

2016-07-28

Recent theories of decision making propose a shared value-related brain mechanism for encoding monetary and social rewards. We tested this model in children with Attention-Deficit/Hyperactivity Disorder (ADHD), children with Autism Spectrum Disorder (ASD) and control children. We monitored participants' brain dynamics using high density-electroencephalography while they played a monetary and social reward tasks. Control children exhibited a feedback Error-Related Negativity (fERN) modulation and Anterior Cingulate Cortex (ACC) source activation during both tasks. Remarkably, although cooperation resulted in greater losses for the participants, the betrayal options generated greater fERN responses. ADHD subjects exhibited an absence of fERN modulation and reduced ACC activation during both tasks. ASD subjects exhibited normal fERN modulation during monetary choices and inverted fERN/ACC responses in social options than did controls. These results suggest that in neurotypicals, monetary losses and observed disloyal social decisions induced similar activity in the brain value system. In ADHD children, difficulties in reward processing affected early brain signatures of monetary and social decisions. Conversely, ASD children showed intact neural markers of value-related monetary mechanisms, but no brain modulation by prosociality in the social task. These results offer insight into the typical and atypical developments of neural correlates of monetary and social reward processing.

Taylor rule and EMU Monetary Policy Determination and ECB's Preferences

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Svatopluk Kapounek

2006-01-01

between the inflation target, potential output, current macroeconomic situation on the one side and current monetary policy strategy, represented by interest rates, on the other side. A range of empirical studies refers to differences between the desired interest rates of member and future member countries of EMU. The level of desired interest rates changes continuously according to the current economic situation of individual national economies. The differences are given by dissimilarities in financial systems, transmission mechanisms, and historical context of monetary arrangements. The authors suppose that the national authorities' and central banks' preferences are constant in the short time or identical before and after enlargement. The main idea of the article is that the traditional approach, which compares desired interest rates by national central banks, is irrelevant before full membership in EMU. The center of the problem is the mutual agreement on preferences of common monetary policy. The answer to the question: how to evaluate real impact of common monetary policy on real economy of EMU candidate countries after their entrance to Eurozone, is expected result of the article.

Estimation of weights for the Monetary Conditions Index in Poland

OpenAIRE

Andrzej Toroj

2008-01-01

In this paper, we follow the econometric approach to assess relative importance of real interest rate and real exchange rate for the monetary conditions in Poland, quantified as weights for Monetary Conditions Index (MCI). We consider both single- and multiple-equation specifications proposed in the literature with an application to Poland. Although MCI is nowadays broadly considered a rather obsolete indicator in monetary policy conduct, we argue that the econometric framework used for this ...

The Relative Importance of the Channels of Monetary Policy ...

African Journals Online (AJOL)

importance channels of monetary policy which are working in Zambia. It answers the ... several ways through which monetary policy affect the balance sheets of economic agents and hence ... economies, especially those with flexible exchange rate regimes. ..... transmission channels work endogenously or exogenously.

Financial structure and monetary policy transmission in transition countries

NARCIS (Netherlands)

Elbourne, A.; de Haan, J.

Using the structural vector autoregressive methodology, we present estimates of monetary transmission for the new and future EU member countries in Central and Eastern Europe. Unlike most previous research we include ten transition countries. We examine to what extent monetary transmission in these

Inflation Targeting as the Monetary Policy Framework: Bangladesh Perspective

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Mohammed SAIFUL ISLAM

2011-06-01

Full Text Available Inflation targeting strategy has become a widely accepted monetary policy framework in many countries all over the world. Our study finds that the central bank of Bangladesh is neither inflation targeting nor does follow any other rule-guided monetary policy, rather the policy is formulated with substantial discretion under the guidelines of donor agencies. This paper provides the evidence that monetary sector of Bangladesh economy has gained considerable degree of maturity and fulfils a number of prerequisites to adopt inflation targeting strategy. Using data over 1980-2010 we estimate an error correction model in order to examine if interest rate policy could fight the inflation. This is evident that deviation in inflation from target can be corrected via the changes in interest rate. Empirical findings jointly with few descriptive statistics provide strong evidence to recommend inflation targeting as the monetary policy strategy for Bangladesh.

Convergence in Multispecies Interactions.

Science.gov (United States)

Bittleston, Leonora S; Pierce, Naomi E; Ellison, Aaron M; Pringle, Anne

2016-04-01

The concepts of convergent evolution and community convergence highlight how selective pressures can shape unrelated organisms or communities in similar ways. We propose a related concept, convergent interactions, to describe the independent evolution of multispecies interactions with similar physiological or ecological functions. A focus on convergent interactions clarifies how natural selection repeatedly favors particular kinds of associations among species. Characterizing convergent interactions in a comparative context is likely to facilitate prediction of the ecological roles of organisms (including microbes) in multispecies interactions and selective pressures acting in poorly understood or newly discovered multispecies systems. We illustrate the concept of convergent interactions with examples: vertebrates and their gut bacteria; ectomycorrhizae; insect-fungal-bacterial interactions; pitcher-plant food webs; and ants and ant-plants. Copyright © 2016 Elsevier Ltd. All rights reserved.

Monetary Policy: Its Impact On The Profitability Of Banks In India

OpenAIRE

Punita Rao

2011-01-01

This purpose of this study is to investigate the impact of monetary policy on the profitability of banks in the context of financial sector reforms in India. We discuss the financial sector reforms and the implication of the banks, the various instruments of monetary policy in India, and the impact of monetary policy on the profitability of banks.

Aggregate Stability in Monetary Economy with Consumption Tax and Taylor Rule

OpenAIRE

Fujisaki, Seiya

2016-01-01

We analyze aggregate stability of a monetary economy with an interest-rate control type of monetary policy and endogenous consumption tax rate under balanced-budget rule, in terms of equilibrium determinacy. We find the effect of the response to income in monetary policy on macroeconomic stability depends on whether the consumption tax rate is adequately high.

Monetary Policy in Chile: a black box?

OpenAIRE

Angel Cabrera; Luis Felipe Lagos

2000-01-01

This paper studies monetary policy in Chile during the 1986-1997 period. We concentrate in understanding the monetary transmission mechanism by which the Central Bank instrument—the real interest rate—affects total expenditure, output and the inflation rate. The methodology used is structural VARS. We find a weak effect of the interest rate on all the variables. The interest rate has a significant effect on the expenditure-output gap. Both the interest rate and the expenditure-output gap have...

The role of forecasts in monetary policy

OpenAIRE

Jeffery D. Amato; Thomas Laubach

2000-01-01

Forecasts of future economic developments play an important role for the monetary policy decisions of central banks. For example, forecasts of goal variables can help central banks achieve their goals and make them more accountable to the public. There are two primary explanations for the benefits of forecasts. The first is that monetary policy affects goal variables such as inflation and output only with substantial lags. Policy actions should, therefore, be based on forecasts of goal variab...

The Monetary Policy in a Changing World

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Mariana Trandafir

2015-05-01

Full Text Available In a context where “the economies’ evolution is driven by the crisis”, the monetary policies are facing, in the post-crisis period, challenges that bring to the forefront of debates the rethinking of objectives, strategies and even implementation tools. This paper presents in a comparative analysis, the relevance of price stability in terms of theoretical fundaments and effectiveness of the concept for the pre and post – crisis periods, in the Eurozone, the US and Japan in an attempt to identify the explicative resorts of the central bank’s monetary behavior. At this time when the central banks are obliged to unconventional measures to save the global economy from the danger of deflation, the topic is important and timely addressed. The paper uses statistical data of official documents taken from the International Monetary Fund, European Union and central bank websites.

The Monetary Policy of the NBU and its Impact on the Placement of Households’ Savings

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Perepolkina Olena О.

2018-03-01

Full Text Available The article researches the efficiency of implementation of monetary policy in Ukraine in the context of determining the optimal ways to place households’ savings. The prospects of making deposits in both national and foreign currency as the most common directions of savings placement are considered. The research has identified that the main risks in the placement of savings by households as deposits in the national currency are the likelihood of bankruptcy of financial institutions, imperfection of the functioning of deposit guarantee system, inflationary fluctuations, and devaluation processes of the national monetary unit. Significant deterrents to the placement of foreign currency deposits are low interest rates, a large number of restrictions in the currency regulation, and a general low level of trust in the banking system. The directions of increasing the efficiency of monetary policy are proposed, that not only will increase the attractiveness of deposits for households, but also will create the basis for macroeconomic stabilization in Ukraine.

Examining the volatility of exchange rate: Does monetary policy matter?

OpenAIRE

Lim, Shu Yi; Sek, Siok Kun

2014-01-01

We conduct empirical analysis on examining the changes in exchange rate volatility under two monetary policy regimes, i.e. the pre- and post- inflation targeting (IT) regimes. In addition, we also investigate if the monetary decisions can have impacts on the volatility of exchange rate. The study is focused in four Asian countries that experienced drastic in the switch of monetary policy from the rigid exchange rate to flexible exchange rate and inflation targeting after the Asian financial c...

Transmission Channels of Monetary Policy: A Broader View

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Lukáš Kučera

2016-08-01

Full Text Available The paper deals with a transmission mechanism of monetary policy under the regime of inflation targeting. It focuses on the expectations channel, the credit view and the cost channel. These channels work side by side and may amplify effects of the traditional view of transmission mechanisms of monetary policy, which emphasises adjustments on the demand side.

Long term fault system reorganization of convergent and strike-slip systems

Science.gov (United States)

Cooke, M. L.; McBeck, J.; Hatem, A. E.; Toeneboehn, K.; Beyer, J. L.

2017-12-01

Laboratory and numerical experiments representing deformation over many earthquake cycles demonstrate that fault evolution includes episodes of fault reorganization that optimize work on the fault system. Consequently, the mechanical and kinematic efficiencies of fault systems do not increase monotonically through their evolution. New fault configurations can optimize the external work required to accommodate deformation, suggesting that changes in system efficiency can drive fault reorganization. Laboratory evidence and numerical results show that fault reorganization within accretion, strike-slip and oblique convergent systems is associated with increasing efficiency due to increased fault slip (frictional work and seismic energy) and commensurate decreased off-fault deformation (internal work and work against gravity). Between episodes of fault reorganization, fault systems may become less efficient as they produce increasing off fault deformation. For example, laboratory and numerical experiments show that the interference and interaction between different fault segments may increase local internal work or that increasing convergence can increase work against gravity produced by a fault system. This accumulation of work triggers fault reorganization as stored work provides the energy required to grow new faults that reorganize the system to a more efficient configuration. The results of laboratory and numerical experiments reveal that we should expect crustal fault systems to reorganize following periods of increasing inefficiency, even in the absence of changes to the tectonic regime. In other words, fault reorganization doesn't require a change in tectonic loading. The time frame of fault reorganization depends on fault system configuration, strain rate and processes that relax stresses within the crust. For example, stress relaxation may keep pace with stress accumulation, which would limit the increase in the internal work and gravitational work so that

The Impact of the Required Reserve on the Monetary Multiplication in the Republic of Macedonias

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Aleksandar Dejanovski

2014-11-01

Full Text Available One of the primary and most important tasks of any central bank is conducting monetary policy in the state. In Macedonia the only central and issuing bank is the National Bank of Macedonia, which is responsible for the monetary and financial stability in the country, while performing important functions, without which the overall economic and financial system could not exist. In exercising its functions, the National Bank of Macedonia uses a set of economic instruments and policies, from which in RM the most efective is the required resserve. This monetary tool is showing the best results in developing countries where the financial markets are not developed and where there is a high concentration of the banking sector (in RM banks occupy a good 98% of total financial institutions. The role of the reserve will be analyzed through the prism of its effects on the process of multiplication the money supply in the country and its contribution to generating or withdrawal of money by the central bank. The main goal of the paper is to research the required reserve, as a monetary instrument, and to qualify its impact on the monetary creation in the Republic of Macedonia. The basic methods, used in this paper are the positive analysis, comparative analysis and deductive approach.

[Effects of visual optical stimuli for accommodation-convergence system on asthenopia].

Science.gov (United States)

Iwasaki, Tsuneto; Tawara, Akihiko; Miyake, Nobuyuki

2006-01-01

We investigated the effect on eyestrain of optical stimuli that we designed for accommodation and convergence systems. Eight female students were given optical stimuli for accommodation and convergence systems for 1.5 min immediately after 20 min of a sustained task on a 3-D display. Before and after the trial, their ocular functions were measured and their symptoms were assessed. The optical stimuli were applied by moving targets of scenery images far and near around the far point position of both eyes on a horizonal place, which induced divergence in the direction of the eye position of rest. In a control group, subjects rested with closed eyes for 1.5 min instead of applying the optical stimuli. There were significant changes in the accommodative contraction time (from far to near) and the accommodative relaxation time (from near to far) and the lag of accommodation at near target, from 1.26 s to 1.62 s and from 1.49 s to 1.63 s and from 0.5 D to 0.65 D, respectively, and in the symptoms in the control group after the duration of closed-eye rest. In the stimulus group, however, the changes of those functions were smaller than in the control group. From these results, we suggest that our designed optical stimuli for accommodation and convergence systems are effective on asthenopia following accommodative dysfunction.

8 CFR 280.53 - Civil monetary penalties inflation adjustment.

Science.gov (United States)

2010-01-01

... 8 Aliens and Nationality 1 2010-01-01 2010-01-01 false Civil monetary penalties inflation... REGULATIONS IMPOSITION AND COLLECTION OF FINES § 280.53 Civil monetary penalties inflation adjustment. (a) In general. In accordance with the requirements of the Federal Civil Penalties Inflation Adjustment Act of...

17 CFR 143.8 - Inflation-adjusted civil monetary penalties.

Science.gov (United States)

2010-04-01

... 17 Commodity and Securities Exchanges 1 2010-04-01 2010-04-01 false Inflation-adjusted civil... JURISDICTION General Provisions § 143.8 Inflation-adjusted civil monetary penalties. (a) Unless otherwise amended by an act of Congress, the inflation-adjusted maximum civil monetary penalty for each violation of...

Monetary stability and financial development in Sub-Saharan countries

NARCIS (Netherlands)

Adema, Yvonne; Sterken, Elmer

2001-01-01

Abstract We analyze the interrelation between monetary stability and financial structure in 20 Sub-Saharan economies. Using a panel data set we estimate the impact of monetary stability and financial development on income per capita. Special interest is given to the conditions of the so-called

Monetary stability and financial development in Sub-Saharan countries

NARCIS (Netherlands)

Adema, Yvonne; Sterken, Elmer

2001-01-01

We analyze the interrelation between monetary stability and financial structure in 20 Sub-Saharan economies. Using a panel data set we estimate the impact of monetary stability and financial development on income per capita. Special interest is given to the conditions of the so-called CFA-countries,

Internal and external transmissions of monetary and fiscal policies in the EMU

NARCIS (Netherlands)

Aarle, B. van; Garretsen, J.H.; Moorsel, C. van

2001-01-01

With the introduction of Economic and Monetary Union (EMU), the sovereignty of national monetary institutions has been replaced by a common monetary institution, the European Central Bank (ECB) and national currencies have been replaced by a common currency, the euro. EMU therefore implies the loss

Weak convergence and uniform normalization in infinitary rewriting

DEFF Research Database (Denmark)

Simonsen, Jakob Grue

2010-01-01

the starkly surprising result that for any orthogonal system with finitely many rules, the system is weakly normalizing under weak convergence if{f} it is strongly normalizing under weak convergence if{f} it is weakly normalizing under strong convergence if{f} it is strongly normalizing under strong...... convergence. As further corollaries, we derive a number of new results for weakly convergent rewriting: Systems with finitely many rules enjoy unique normal forms, and acyclic orthogonal systems are confluent. Our results suggest that it may be possible to recover some of the positive results for strongly...

MONEY: FROM STATISTICAL DEFINITION TO MONETARY POLICY FOR ADOPTING EURO.

Directory of Open Access Journals (Sweden)

Zapodeanu Daniela

2011-07-01

Full Text Available Abstract: The evolution of monetary aggregates is closely related to the economic cycle, especially the evolution of GDP. The study aims to analyse the primary monetary aggregates (M1, the secondary (M2 and the tertiary (M3 in three Central and Eastern European countries: Romania, Bulgaria and Poland. The countries were chosen as follows: Romania and Bulgaria on the basis of the economic and geographical closeness and Poland as a benchmark for the first group. The data used are money supply, monetary aggregates: primary, secondary and tertiary, in Romania, Poland and Bulgaria, for the period January 2004 - March 2011, the monthly series are obtained from central bank websites, Poland's Central Bank and Bulgarian National Statistical Institute. The evolution of monetary aggregates of the three countries was compared with the Euro area and it was noticed a high degree of similarity between countries more developed economically as compared to less developed countries. From the viewpoint of optimum currency areas, it is necessary that the countries that adopt the Euro would respond symmetrically to external shocks and also have similar economic behaviour. Our study aims, in this respect, to analyse the components and the characteristics of the monetary aggregates, as well as the trends existing within them. The analysis of the correlation between monetary aggregates will show how the way in which the monetary mass and aggregates behave and which the sense of connection established between these countries is. We find that Romania and Bulgaria have a similar comportment, the correlation between these being the highest, we observe some differences between Romania and Bulgaria versus Poland.

Evaluation of Reports Required by the Statutes for Distribution of Monetary Donations and Allowances

OpenAIRE

Harun Tugcu; Mehmet Toygar; Ender Senol; I. Ozgur Can; Mukerrem Safali

2007-01-01

Physicians have to write reports in accordance with the relevant laws, statutes and regulations when requested by the administrations for distribution of monetary donations and allowances. The Statutes for Distribution of Monetary Donations and Allowances show the conditions requiring monetary support, the people who need monetary donations and the types of making monetary donations in cases of disabilities and injuries. We retrospectively reviewed the reports written in accordance with the S...

Modelling of volatility in monetary transmission mechanism

Energy Technology Data Exchange (ETDEWEB)

Dobešová, Anna; Klepáč, Václav; Kolman, Pavel [Department of Statistics and Operation Analysis, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 61300, Brno (Czech Republic); Bednářová, Petra [Institute of Technology and Business, Okružní 517/10, 370 01, České Budějovice (Czech Republic)

2015-03-10

The aim of this paper is to compare different approaches to modeling of volatility in monetary transmission mechanism. For this purpose we built time-varying parameter VAR (TVP-VAR) model with stochastic volatility and VAR-DCC-GARCH model with conditional variance. The data from three European countries are included in the analysis: the Czech Republic, Germany and Slovakia. Results show that VAR-DCC-GARCH system captures higher volatility of observed variables but main trends and detected breaks are generally identical in both approaches.

Modelling of volatility in monetary transmission mechanism

International Nuclear Information System (INIS)

Dobešová, Anna; Klepáč, Václav; Kolman, Pavel; Bednářová, Petra

2015-01-01

The aim of this paper is to compare different approaches to modeling of volatility in monetary transmission mechanism. For this purpose we built time-varying parameter VAR (TVP-VAR) model with stochastic volatility and VAR-DCC-GARCH model with conditional variance. The data from three European countries are included in the analysis: the Czech Republic, Germany and Slovakia. Results show that VAR-DCC-GARCH system captures higher volatility of observed variables but main trends and detected breaks are generally identical in both approaches

Uganda; Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Monetary and Financial Policy Transparency, Banking Supervision, Securities Regulation, and Payment Systems

OpenAIRE

International Monetary Fund

2003-01-01

This paper presents findings of Uganda’s Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on Monetary and Financial Policy Transparency, Banking Supervision, Securities Regulation, Insurance Regulation, Corporate Governance, and Payment Systems. The banking system in Uganda, which dominates the financial system, is fundamentally sound, more resilient than in the past, and currently poses no threat to macroeconomic stability. A major disruption ...

Integrating Monetary and Non-monetary Reenlistment Incentives Utilizing the Combinatorial Retention Auction Mechanism (CRAM)

Science.gov (United States)

2008-12-01

107 A. MOTIVATION ... Telecommuting ............57 Figure 13. Reasons for Accepting the SRB...................60 Figure 14. Reasons for Declining the SRB... telecommuting , and additional money for dependents (education and daycare). This current thesis conducted a similar non-monetary incentive

Monetary Shocks in Models with Inattentive Producers.

Science.gov (United States)

Alvarez, Fernando E; Lippi, Francesco; Paciello, Luigi

2016-04-01

We study models where prices respond slowly to shocks because firms are rationally inattentive. Producers must pay a cost to observe the determinants of the current profit maximizing price, and hence observe them infrequently. To generate large real effects of monetary shocks in such a model the time between observations must be long and/or highly volatile. Previous work on rational inattentiveness has allowed for observation intervals that are either constant-but-long ( e.g . Caballero, 1989 or Reis, 2006) or volatile-but-short ( e.g . Reis's, 2006 example where observation costs are negligible), but not both. In these models, the real effects of monetary policy are small for realistic values of the duration between observations. We show that non-negligible observation costs produce both of these effects: intervals between observations are infrequent and volatile. This generates large real effects of monetary policy for realistic values of the average time between observations.

Do convergent developmental mechanisms underlie convergent phenotypes?

Science.gov (United States)

Wray, Gregory A.

2002-01-01

Convergence is a pervasive evolutionary process, affecting many aspects of phenotype and even genotype. Relatively little is known about convergence in developmental processes, however, nor about the degree to which convergence in development underlies convergence in anatomy. A switch in the ecology of sea urchins from feeding to nonfeeding larvae illustrates how convergence in development can be associated with convergence in anatomy. Comparisons to more distantly related taxa, however, suggest that this association may be limited to relatively close phylogenetic comparisons. Similarities in gene expression during development provide another window into the association between convergence in developmental processes and convergence in anatomy. Several well-studied transcription factors exhibit likely cases of convergent gene expression in distantly related animal phyla. Convergence in regulatory gene expression domains is probably more common than generally acknowledged, and can arise for several different reasons. Copyright 2002 S. Karger AG, Basel.

Da obiettivi monetari a obiettivi di cambio. (From monetary to exchange rate targets

Directory of Open Access Journals (Sweden)

M.J. ARTIS

2013-12-01

Full Text Available Questo documento è stato presentato in occasione del quarto Seminario Internazionale sui diritti economici e monetaria dell'Unione Europea, tenutosi a Copenaghen nel marzo del 1981. L'autore prende le questioni teoriche nell'ambito dell'analisi sia statica che dinamica. Egli sostiene, sulla base del criterio di minimizzare la varianza dei prezzi intorno loro valore nominale, che un obiettivo di cambio supera un obiettivo monetario nella maggior parte dei tipi immaginabili di disturbi in un'analisi statica.This paper was presented at the Fourth International Seminar on European Economic and Monetary Union, held in Copenhagen in March of 1981. The author takes up the theoretical issues in the framework of both static and dynamic analysis. He argues, on the basis of the criterion of minimising the variance of prices around their target value, that an exchange-rate target outperforms a monetary target under most conceivable types of disturbances in a static analysis. JEL: E24, F36

Representational System Predicate Use and Convergence in Counseling: Gloria Revisited.

Science.gov (United States)

Mercier, Mary Ann; Johnson, Marilyn

1984-01-01

Analayzed transcripts of Three Approaches to Psychotherapy (Shostrom, 1966) for counselor and client representational system predicate use. Although different patterns of predicate use emerged, only limited support for Neurolinguistic Programming theory was found. The findings of different patterns of predicate use were related to convergence and…

POLITICAL MONETARY CYCLES IN COALITION AND SINGLE PARTY GOVERNMENT PERIODS: A CASE STUDY ON TURKEY

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AHMET EMRAH TAYYAR

2017-12-01

Full Text Available According to the theory of political monetary cycles, the government manipulates monetary policy during election periods in order to be re-elected. According to the said theory, expansionary monetary policies are implemented before the elections with opportunistic objective, while the contractionary monetary policies are implemented to stabilize the economy immediately after the elections. The use of monetary policy instruments for political purposes depends on the presence of a non-autonomous central bank, flexible exchange rate regime in the country, and the coordination between fiscal and monetary policies. Thus, the changes in the monetary policy indicators in election periods during coalition and single party governments in Turkey between 1990 and 2016 were examined in the present study. The money in circulation (M0, M1 money supply, domestic loans and inflation series were analyzed with the seasonal Box-Jenkins method for the above mentioned periods. Based on the findings of the study, political monetary cycles were not observed during the 1990-2000 coalition governments. It was determined that there were political monetary cycles during the single party government period between 2000 and 2016.Furthermore, although it could be expected that the political monetary cycles would be removed with the liberalization of the Turkish central bank on 25 April 2001, the existence of political monetary cycles during the period of 2000-2016 indicates that central bank independence was not fully achieved in Turkey. Based on another finding of the present study, the lack of political monetary cycles during the coalition government periods could lead to the failure in financing the budget deficit that increase due to political reasons with monetary policies. However, due to the existence of political monetary cycles during the single party government period, it could be argued that politically induced budget deficits changed in consistence with the

Monetary Policy, Determinancy and Learnability in the Open Economy

NARCIS (Netherlands)

Bullard, J.; Schaling, E.

2005-01-01

We study how determinacy and learnability of global rational expectations equilibrium may be affected by monetary policy in a simple, two country, New Keynesian framework.The two blocks may be viewed as the U.S. and Europe, or as regions within the euro zone.We seek to understand how monetary policy

Is the Current Monetary System Viable? What Are the Alternatives? Can Complementary Currencies Bring More Stability and Sustainability?

OpenAIRE

Legrand, Nicolas; De Vliegher, Hubert

2017-01-01

According to the International Monetary Fund, 145 banking crises, 208 monetary crashes and 72 sovereign-debt crises have occurred between 1970 and 2010 (Lietaer, Arnsperger, Goerner, & Brunnhuber, 2012). Crises have a negative impact on employment, human and social costs and production, and ultimately taxpayers are left to pay the bill. The most recent example is the 2007-2008 sub-prime banking crisis that affected countries such as Great Britain, Germany, the Unites States and Belgium. Anoth...

14 CFR 13.305 - Cost of living adjustments of civil monetary penalties.

Science.gov (United States)

2010-01-01

... 14 Aeronautics and Space 1 2010-01-01 2010-01-01 false Cost of living adjustments of civil... Inflation Adjustment § 13.305 Cost of living adjustments of civil monetary penalties. (a) Except for the... and maximum civil monetary penalty for each civil monetary penalty by the cost-of-living adjustment...

Relationship Between Energy Prices, Monetary Policy and Inflation; A Case Study of South Asian Economies

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Atiq-ur-Rehman

2014-01-01

Full Text Available Monetary policy tools, including money supply and interest rate, are the most popular instruments to control inflation around the globe. It is assumed that a tight monetary policy, either in form of reduction in money supply or an increase in interest rate, will reduce inflation by reducing aggregate demand in an economy. However, monetary policy could be counterproductive if cost side effects of monetary tightening prevail. High energy prices may increase the cost of production by reducing aggregate supply in the economy. If tight monetary policy is used to reduce this cost push inflation, the cost side effect of energy prices will add to cost side effects of monetary tightening and will become dominant. In this case, the monetary policy could be counterproductive. Furthermore, simultaneous reduction in aggregate supply and aggregate demand will bring twofold reduction in output. Therefore greater care is needed in the use of monetary policy in the situation of cost push inflation. This article investigates the presence of cost side effect of monetary transmission mechanism, the role of international oil prices in domestic inflation, and implications for monetary policy. The findings suggest that both monetary policy and oil prices have cost side effects on inflation and monetary tightening could be counterproductive if used to reduce energy pushed inflationary trend.

Analysis of Fiscal Rules in the European Monetary Union

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Šehović Damir

2015-01-01

Full Text Available : The EMU fiscal system is specific in many areas compared to other classic fiscal systems of national states. Specific features mainly reflect in the implementation of economic policy within the EMU which is carried out by combining a common centralized monetary policy under the ECB jurisdiction and decentralized fiscal policies under the jurisdiction of the member states. The member states` sovereignty in governing their fiscal policies is one of the key causes of the EU fiscal system underdevelopment, i.e. its indigent structure in relation to “standard fiscal systems”.

Accountability of the International Monetary Fund | CRDI - Centre de ...

International Development Research Centre (IDRC) Digital Library (Canada)

Accountability of the International Monetary Fund. Couverture du livre Accountability of the International Monetary Fund. Directeur(s):. Barry Carin et Angela Wood. Maison(s) d'édition: Ashgate, CRDI. 29 juin 2005. ISBN : 0754645231. 140 pages. e-ISBN : 1552501752. Téléchargez le PDF · Téléchargez le cyberlivre.

Convergence to equilibrium in competitive Lotka–Volterra and chemostat systems

KAUST Repository

Champagnat, Nicolas; Jabin, Pierre-Emmanuel; Raoul, Gaë l

2010-01-01

We study a generalized system of ODE's modeling a finite number of biological populations in a competitive interaction. We adapt the techniques in Jabin and Raoul [8] and Champagnat and Jabin (2010) [2] to prove the convergence to a unique stable equilibrium. © 2010 Académie des sciences.

Monetary ecosystem services valuation in natural environment management

OpenAIRE

Álvarez, David

2017-01-01

As it happened with Stern Report, which made international community change their attitude related to climate change, TEEB (The Economics of Ecosystem Services and Biodiversity) was a turning point in valuing biodiversity and ecosystem services. This change of attitude happened, partially, thanks to include monetary ecosystem valuation of ecosystem services and how much their conservation and avoid their loss worth to the entire society. Integrate monetary valuation in green infrastructur...

Advertising energy saving programs: The potential environmental cost of emphasizing monetary savings.

Science.gov (United States)

Schwartz, Daniel; Bruine de Bruin, Wändi; Fischhoff, Baruch; Lave, Lester

2015-06-01

Many consumers have monetary or environmental motivations for saving energy. Indeed, saving energy produces both monetary benefits, by reducing energy bills, and environmental benefits, by reducing carbon footprints. We examined how consumers' willingness and reasons to enroll in energy-savings programs are affected by whether advertisements emphasize monetary benefits, environmental benefits, or both. From a normative perspective, having 2 noteworthy kinds of benefit should not decrease a program's attractiveness. In contrast, psychological research suggests that adding external incentives to an intrinsically motivating task may backfire. To date, however, it remains unclear whether this is the case when both extrinsic and intrinsic motivations are inherent to the task, as with energy savings, and whether removing explicit mention of extrinsic motivation will reduce its importance. We found that emphasizing a program's monetary benefits reduced participants' willingness to enroll. In addition, participants' explanations about enrollment revealed less attention to environmental concerns when programs emphasized monetary savings, even when environmental savings were also emphasized. We found equal attention to monetary motivations in all conditions, revealing an asymmetric attention to monetary and environmental motives. These results also provide practical guidance regarding the positioning of energy-saving programs: emphasize intrinsic benefits; the extrinsic ones may speak for themselves. (c) 2015 APA, all rights reserved).

Including the monetary part in macro accounting: A ‘modern’ approach to the macroeconomic accounting

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Onur TUTULMAZ

2014-12-01

Full Text Available Economic output is placed at the heart of the macroeconomics. To calculate the output one needs to achieve simplifying a high level complexity of economic relationships to form a system. On the flip side, the model should be enough elaborated to be able to reflect the important relationships. In this manner, the classical macroeconomic identity as Keynes suggested is simple enough to understand the main elements but it does not show the financial parts of transactions. Not having the monetary part of the economy it lacks the coherence. With the financial and economic crises getting more frequent, more endeavour to build a more inclusive and coherent macroeconomic system has been observed. However, there are large variety in different options of simplifying and simulating complex relationships among the real and monetary part of the modern economies.  Our paper tries to set an analysis comparing some of the recent prominent ideas in building balance sheet and transaction flow matrix in regard to macroeconomic accounting system. We can conclude the new achievement of including the monetary transactions in the frame causes a compromise from the simplicity for a coherent and more complete picture of macro economy.

Multimode seeded Richtmyer-Meshkov mixing in a convergent, compressible, miscible plasma system

International Nuclear Information System (INIS)

Lanier, N.E.; Barnes, Cris W.; Batha, S.H.; Day, R.D.; Magelssen, G.R.; Scott, J.M.; Dunne, A.M.; Parker, K.W.; Rothman, S.D.

2003-01-01

Richtmyer-Meshkov (RM) mixing seeded by multimode initial surface perturbations in a convergent, compressible, miscible plasma system is measured on the OMEGA [T. R. Boehly et al., Opt. Commun. 133, 495 (1997)] laser system. A strong shock (Mach 12-20), created by 50 laser beams, is used to accelerate impulsively a thin aluminum shell into a lower density foam. As the system converges, both interfaces of the aluminum are RM unstable and undergo mixing. Standard x-ray radiographic techniques are employed to survey accurately the zero-order hydrodynamics, the average radius and overall width, of the marker. LASNEX [G. B. Zimmerman et al., Comments on Plasma Physics 2, 51 (1975)] simulations are consistent with the zero-order behavior of initially smooth markers. In experiments with smooth aluminum markers, the measured marker width shortly after shock passage behaves incompressibly and thickens due to Bell-Plesset effects. At high convergence (>4), the marker begins to compress as the rebounding shock passes back through the marker. When an initial multimode perturbation is introduced to the outer surface of the marker, the measured marker width is observed to increase by 10-15 μm, and is substantially smaller than as-shot simulations using RAGE [R. M. Baltrusaitis et al., Phys. Fluids 8, 2471 (1996)] would predict

THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE

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Abdul Mongid

2017-03-01

Full Text Available The monetary policy mechanism by which monetary policy was transmitted to thereal economy had emerged as the pivotal discussion topic recently. This paper tried to discussthe impact of Bank Indonesia’s monetary policy on loan bank. By using simple loan bankframework we concluded that monetary policies were able to influence loan bank. Themonetary variables such as discount rate policy, base money and exchange rate policy werevery important in determining the banking credit. As the credit was very important to influencesthe economic activitiy, the result provided evidence that monetary policy was important as atool to control economic activity via credit channel. The validity of this study challenged thehypotheses that monetary policy was death. However, monetary policy maker should carefullyconsider the soundness of the banking industry because it was a strategic partner for monetaryauthority to control the economic activities.

Information frictions and monetary policy

Czech Academy of Sciences Publication Activity Database

Matějka, Filip

2012-01-01

Roč. 6, č. 1 (2012), s. 7-24 ISSN 1802-792X Institutional support: RVO:67985998 Keywords : nominal rigidity * information frictions * monetary economics Subject RIV: AH - Economics http://www.vsfs.cz/periodika/acta-2012-01.pdf

Monetary and Fiscal Policies for a Finite Planet

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Adam Scanlan

2013-06-01

Full Text Available Current macroeconomic policy promotes continuous economic growth. Unemployment, poverty and debt are associated with insufficient growth. Economic activity depends upon the transformation of natural materials, ultimately returning to the environment as waste. Current levels of economic throughput exceed the planet’s carrying capacity. As a result of poorly constructed economic institutions, society faces the unacceptable choice between ecological catastrophe and human misery. A transition to a steady-state economy is required, characterized by a rate of throughput compatible with planetary boundaries. This paper contributes to the development of a steady-state economy by addressing US monetary and fiscal policies. A steady-state monetary policy would support counter-cyclical, debt-free vertical money creation through the public sector, in ways that contribute to sustainable well-being. The implication for a steady-state fiscal policy is that any lending or spending requires a careful balance of recovery of money, not as a means of revenue, but as an economic imperative to meet monetary policy goals. A steady-state fiscal policy would prioritize targeted public goods investments, taxation of ecological “bads” and economic rent and implementation of progressive tax structures. Institutional innovations are considered, including common asset trusts, to regulate throughput, and a public monetary trust, to strictly regulate money supply.

Convergence to equilibrium in competitive Lotka–Volterra and chemostat systems

KAUST Repository

Champagnat, Nicolas

2010-12-01

We study a generalized system of ODE\\'s modeling a finite number of biological populations in a competitive interaction. We adapt the techniques in Jabin and Raoul [8] and Champagnat and Jabin (2010) [2] to prove the convergence to a unique stable equilibrium. © 2010 Académie des sciences.

MONETARY POLICY TRANSMISSION MECHANISM AND TVP-VAR MODEL

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Andreea ROŞOIU

2013-12-01

Full Text Available The transmission of monetary policy to the economy is a subject of major importance for central banks because, by using these measures, central banks can achieve their purpose of ensuring price stability without neglecting the objective of sustainable economic growth. In order to analyze the evolution of the monetary policy transmission mechanism in Romania, a time varying structural vector autoregression model is estimated, by using a Markov Chain Monte Carlo algorithm for the posterior evolution. The conclusions of the empirical study are: both systematic and non-systematic monetary policy have changed during the investigated period of time, the systematic response of the interest rate to shocks in inflation and unemployment being faster over the recent period. Also, non-policy shocks seem more important than interest rate shocks in explaining inflation and unemployment evolution.

Information and Uncertainty in the Theory of Monetary Policy

OpenAIRE

Wagner, Helmut

2007-01-01

Theory and practice of monetary policy have changed significantly over the past three decades. A very important part of today's monetary policy is management of the expectations of private market participants. Publishing and justifying the central bank's best forecast of inflation, output, and the instrument rate is argued to be the most effective way to manage those expectations.

The Impact of Monetary Policy on Bank Credit During Economic Crisis: Indonesia's Experience

OpenAIRE

Mongid, Abdul

2008-01-01

The monetary policy mechanism by which monetary policy was transmitted to thereal economy had emerged as the pivotal discussion topic recently. This paper tried to discussthe impact of Bank Indonesia’s monetary policy on loan bank. By using simple loan bankframework we concluded that monetary policies were able to influence loan bank. Themonetary variables such as discount rate policy, base money and exchange rate policy werevery important in determining the banking credit. As the credit was ...

Monetary Policy Transmission and Firms’ Investment: Evidence From the Manufacturing Sector of Pakistan

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Arslan Majeed

2017-12-01

Full Text Available This study explores the effects of monetary policy on firms’ business fixed investment spending through the interest rate and broad credit channels of monetary policy transmission mechanism in Pakistan. Due to the problem of endogeneity, Generalized Method of Moments (GMM two step estimation technique is applied on neo-classical investment model by using disaggregated firm level data of manufacturing sector of Pakistan over the period 1974-2010. The results suggest the relevance of both the interest rate and broad credit channels in Pakistan. Firms’ investment found to be negatively affected by the monetary contraction while positively influenced by cash flow and the sales. Small firms explored to be more sensitive to the monetary tightening as compared to large firms indicating that monetary policy exerts heterogeneous effects. Results highlight the importance of considering the financial conditions of the firms in formulation of monetary policy.

DOES THE MAASTRICHT CONVERGENCE CRITERIA WORK?

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Karsai Zoltán-Krisztián

2012-12-01

Full Text Available During its 13 year history, the euro area experienced the most severe economic downturn in the late 2000s as a result of the 2007 financial-economic crisis stemming from the US banking sector. The crisis in the monetary union, besides posting a significant economic and social cost, revealed several weaknesses not just of the currency block as a whole, but also of its constituting members, which were masked by the prosperous economic environment characteristic for the 2000s. These conditions have put to the test the solidarity among the euro zone members, or in other words the existence of the currency block. One important problem of the currency block is the lack of harmony between the fiscal and economic policies of the member states, creating several and occasionally very divergent parts of the currency block. The aim of this research is to enhance the Maastricht convergence criteria’s and the Stability and Growth Pact’s role as a monitoring mechanism, allowing them to become more informative tools for the policy makers. For this, based on the relevant literature, we propose new potential explanatory variables which could enhance the role of the Maastricht convergence criteria and the Stability and Growth Pact. Some of the studied variables, like indebtedness of the private sector, capital flow compared to the size of the economy, government revenue compared to total public debt and current account balance help in enforcing the nominal convergence, while others (real labour productivity contribute to the real convergence. The explanatory power of the proposed variables are investigated in the case of France, Germany, Greece, Ireland, Italy, Portugal and Spain for the period comprised between 2000Q1-2011Q4. Results of the research show that with the exception of government revenue compared to total public debt, all proposed variables have significant explanatory power regarding the evolution of the state of the economy in all

Converging Information and Communication Systems

DEFF Research Database (Denmark)

Øst, Alexander

2003-01-01

in the future to have - significant importance to the process and consequences of the convergence. The project focuses on the appliances, i.e. the TV sets, the computers and their peripheral equipment. It also takes into account the infrastructure and signals, which contain and deliver the information...

Friendliness pays off! Monetary and immaterial gifts in consumer-salesperson interactions

OpenAIRE

Kirchler, Michael; Palan, Stefan

2014-01-01

Recent studies find ample evidence that monetary and immaterial gifts influence effort in the workplace. We investigate the impacts of monetary gift exchange and of expressions of respect on salespersons' reciprocity when purchasing doner durum, a common lunch snack. Prior to the food's preparation, we either induce monetary gift exchange by tipping or explore the role of respect by making a compliment. We repeat the interaction on five consecutive days. Our findings show that salespersons ex...

Monetary regimes in open economies

NARCIS (Netherlands)

Korpos, A.

2006-01-01

This thesis presents a two-country open economy framework for the analysis of strategic interactions among monetary authorities and wage bargaining institutions. From this perspective, the thesis investigates the economic consequences of replacing flexible and fixed exchange rate regimes with a

Preferences of the Central Reserve Bank of Peru and optimal monetary rules in the inflation targeting regime

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Nilda Mercedes Cabrera Pasca

2012-03-01

Full Text Available This study aims to identify the preferences of the monetary authority in the Peruvian regime of inflation targeting through the derivation of optimal monetary rules. To achieve that, we used a calibration strategy based on the choice of values of the parameters of preferences that minimize the square deviation between the true interest rate and interest rate optimal simulation. The results showed that the monetary authority has applied a system of flexible inflation targeting, prioritizing the stabilization of inflation, but without disregarding gradualism in interest rates. On the other hand, concern over output stabilization has been minimal, revealing that the output gap has been important because it contains information about future inflation and not because it is considered a variable goal in itself. Finally, when the smoothing of the nominal exchange rate is considered in the loss function of the monetary authority, the rank order of preferences has been maintained and the smoothing of the exchange rate proved insignificant.

Convergence

DEFF Research Database (Denmark)

Prasad, Ramjee

2009-01-01

This paper presents the main conclusions which can be drawn from the discussions on Future Communication Systems and lessons on Unpredictable Future of Wireless Communication Systems. Future systems beyond the third generation are already under discussions in international bodies, such as ITU, WW...... and R&D programmes worldwide. The incoming era is characterized by the convergence of networks and access technology and the divergence of applications. Future mobile communication systems should bring something more than only faster data or wireless internet access....

Single European currency and Monetary Union. Macroeconomic implications for pharmaceutical spending.

Science.gov (United States)

Kanavos, P

1998-01-01

This article examines the potential implications of introducing a single currency among the Member States of the European Union for national pharmaceutical prices and spending. In doing so, it provides a brief account of the direct effects of introducing a single currency on pharmaceutical business. These are static in nature and include the elimination of exchange rate volatility and transaction costs, increased price transparency and limited potential for parallel trade. It subsequently analyses the potential medium and long term macroeconomic policy choices facing the Member States and their impact on pharmaceutical spending following the introduction of a single currency. These include policy directions in order to meet the Maastricht convergence criteria in the run-up to forming an Economic and Monetary Union (EMU) and the implications of EMU on national macroeconomic policy thereafter. This article argues that the necessity for tight fiscal policies across the EU and, in particular, in those Member States facing high budget deficits and overall debt levels, will continue to exert considerable downward pressure on pharmaceutical spending.

Distributed weighted least-squares estimation with fast convergence for large-scale systems.

Science.gov (United States)

Marelli, Damián Edgardo; Fu, Minyue

2015-01-01

In this paper we study a distributed weighted least-squares estimation problem for a large-scale system consisting of a network of interconnected sub-systems. Each sub-system is concerned with a subset of the unknown parameters and has a measurement linear in the unknown parameters with additive noise. The distributed estimation task is for each sub-system to compute the globally optimal estimate of its own parameters using its own measurement and information shared with the network through neighborhood communication. We first provide a fully distributed iterative algorithm to asymptotically compute the global optimal estimate. The convergence rate of the algorithm will be maximized using a scaling parameter and a preconditioning method. This algorithm works for a general network. For a network without loops, we also provide a different iterative algorithm to compute the global optimal estimate which converges in a finite number of steps. We include numerical experiments to illustrate the performances of the proposed methods.

Evaluation of Reports Required by the Statutes for Distribution of Monetary Donations and Allowances

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Harun Tugcu

2007-12-01

Full Text Available Physicians have to write reports in accordance with the relevant laws, statutes and regulations when requested by the administrations for distribution of monetary donations and allowances. The Statutes for Distribution of Monetary Donations and Allowances show the conditions requiring monetary support, the people who need monetary donations and the types of making monetary donations in cases of disabilities and injuries. We retrospectively reviewed the reports written in accordance with the Statutes for Distribution of Monetary Donations and Allowances in the Department of Forensic Medicine of Gulhane Military Medical Academy between 1st January 2005 and 31st December 2006. There were 87 reports written in accordance with the Statutes for Distribution of Monetary Donations and Allowances. The mean age of the cases was 25.93 ±5.8 years (20-43 years. The most frequent condition requiring monetary support was gun shot wounds (42.6%. The most frequent location of the wounds was the head (31% and there was an increase in the duration of work leave caused by disabilities (p<0.05. The aim of this study was to determine problems which physicians face when they write reports required by the Statutes for Distribution of Monetary Donations and Allowances and to underline the points concerning writing those reports based on the relevant laws. [TAF Prev Med Bull 2007; 6(6.000: 475-478

Evaluation of Reports Required by the Statutes for Distribution of Monetary Donations and Allowances

Directory of Open Access Journals (Sweden)

Harun Tugcu

2007-12-01

Full Text Available Physicians have to write reports in accordance with the relevant laws, statutes and regulations when requested by the administrations for distribution of monetary donations and allowances. The Statutes for Distribution of Monetary Donations and Allowances show the conditions requiring monetary support, the people who need monetary donations and the types of making monetary donations in cases of disabilities and injuries. We retrospectively reviewed the reports written in accordance with the Statutes for Distribution of Monetary Donations and Allowances in the Department of Forensic Medicine of Gulhane Military Medical Academy between 1st January 2005 and 31st December 2006. There were 87 reports written in accordance with the Statutes for Distribution of Monetary Donations and Allowances. The mean age of the cases was 25.93 ±5.8 years (20-43 years. The most frequent condition requiring monetary support was gun shot wounds (42.6%. The most frequent location of the wounds was the head (31% and there was an increase in the duration of work leave caused by disabilities (p<0.05. The aim of this study was to determine problems which physicians face when they write reports required by the Statutes for Distribution of Monetary Donations and Allowances and to underline the points concerning writing those reports based on the relevant laws. [TAF Prev Med Bull. 2007; 6(6: 475-478

EFFECTIVENESS AND LIMITATIONS OF MONETARY POLICY INSTRUMENTS IN ROMANIA AND THE EUROPEAN UNION

Directory of Open Access Journals (Sweden)

Zina CIORAN

2014-12-01

Full Text Available The complexity of the monetary phenomenon as well as the effects that it induces in the social and economic life of the countries around the world have represented and still represent the subject of much controversy and dispute. The current forms of the monetary circulation organization in different countries, internationally as well, represent the result of a continuous process of changes and innovations in the monetary area. The purpose of this article is to present aspects of the monetary policy and its instruments which have evolved according to the historical conditions of each period. The paper is also a presentation of effectiveness and limits of the monetary policy instruments and their role in solving the current economic problems for which the governments seek solutions. As a consequence to the analysis, it can be seen that in most cases it uses a mixture of monetary policy instruments because, when acting in a complementary way, they have a higher efficiency.

National monetary policy by regional design: the evolving role of the Federal Reserve banks in Federal Reserve System policy

OpenAIRE

David C. Wheelock

1999-01-01

This paper examines the history of Federal Reserve Bank input into Federal Reserve System monetary policymaking. From the Fed's founding in 1914 through the Great Depression, the Reserve Banks held the balance of power. Dissatisfaction with the Fed's performance, however, led to a wholesale reorganization in 1935 that greatly enhanced the authority of the Federal Reserve Board, but retained a role for the Federal Banks through the membership of their presidents on the FOMC, as well as in sett...

Effectiveness of monetary and macroprudential shocks on consumer credit growth and volatility in Turkey

Directory of Open Access Journals (Sweden)

Meltem Gulenay Chadwick

2018-06-01

Full Text Available This paper proposes a panel VAR model to uncover the effect of monetary policy and macroprudential tightening probability on general purpose loans, housing loans, vehicle loans, credit cards and their respective volatilities in Turkey. To conduct our analysis, first, we compare a number of stochastic volatility models using our loan and credit card series in a formal Bayesian model comparison exercise, in order to determine the best volatility model for our series. Second we disclose the latent probability of macroprudential tightening from the binary information of policy episodes, using an instrumental variable probit model estimated by conditional maximum likelihood with heteroscedasticity robust standard errors. Lastly we estimate the dynamic impact of monetary policy and macroprudential measures using a panel VAR, incorporating the latent probability of tightening episodes, credit growth, industrial production growth, loan rates, inflation and credit growth volatilities into the endogenous system of equations. We conclude that macroprudential tightening is effective in dampening credit growth, credit growth volatility and reducing consumer price inflation. Besides, this effect is more prominent when macroprudential tools are administered in coordination with monetary policy. Keywords: Consumer loans, Monetary policy, Macroprudential policy, Stochastic volatility models, Credit growth volatility, IV probit model, Panel VAR model, JEL classification: C54, E44, E52

The Transmission of Monetary Policy through Conventional and Islamic Banks

NARCIS (Netherlands)

Zaheer, S.; Ongena, S.; van Wijnbergen, S.J.G.

2011-01-01

We investigate the differences in banks’ responses to monetary policy shocks across bank size, liquidity, and type, i.e., conventional versus Islamic, in Pakistan between 2002:II to 2010:I. We find that following a monetary contraction, small banks with liquid balance sheets cut their lending less

On the influence of institutional design on monetary policy making

NARCIS (Netherlands)

Raes, L.B.D.

2014-01-01

This thesis consists of a collection of essays on monetary policy making. These essays focus on institutional aspects which impact monetary policy making. Two chapters focus on analyzing voting records of central banks. A method is proposed to use the observed votes to infer the preferences of

The transmission of monetary policy through conventional and islamic banks

NARCIS (Netherlands)

Zaheer, S.; Ongena, S.; van Wijnbergen, S.

2012-01-01

We investigate the differences in banks' responses to monetary policy shocks across bank size, liquidity, and type, i.e., conventional versus Islamic, in Pakistan between 2002:II to 2010:I. We find that following a monetary contraction, small banks with liquid balance sheets cut their lending less

Monetary Policy and Financial Asset Prices: Empirical Evidence from Pakistan

Directory of Open Access Journals (Sweden)

Imran Umer Chhapra

2018-03-01

Full Text Available Monetary transmission mechanism assumed to be significantly influenced by the effect of policy decisions on financial markets. However, various previous studies have come up with different outcomes. The purpose of this study is to examine the impact of monetary policy on different asset classes (shares and bonds in Pakistan. This study using stock price and bond yield as dependent variable and discount rate, money supply, inflation, and exchange rate are independent variables. Data of all variables have collected from 2010 to 2016, and Vector Autoregressive (VAR technique has applied. The empirical results indicate that there is an impact of monetary policy components on both stock and bond market as an increase in policy rate causes decline in stocks prices and bonds yields. The findings of this study will help the potential investors in making long-term (in general and short-term (in particular investment strategies concerning monetary policy.DOI: 10.15408/sjie.v7i2.7099

Towards the Theory of monetary degradation, or Post Keynesian analysis of monetary problems of the Russian transitional economy in 1991-1998

OpenAIRE

ROZMAINSKY I.V.

2016-01-01

The paper develops Post Keynesian theory of endogenous money and applies it to analysis of changes in monetary circulation in the Russian transitional economy in 1991-1998. These changes were characterized by displacement of bank deposits by cash, barter and inter-firm arrears as special means of payment. Author treats this process as «monetary degradation» because it created additional barriers to financing investment, made for criminalization and contributed to cost-push inflation. All this...

To be or renminbi: Trend in the evolution of the international monetary system

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Malović Marko G.

2014-01-01

Full Text Available By joining the recent research bandwagon in international finance, this paper reexamines the potential of Chinese yuan for becoming a leading world currency. After analysing historical perspective and the ongoing state of affairs in de facto tripolar global monetary system, both external and internal impediments to internationalisation of the 'redback' are given a due consideration. In light of portfolio rebalancing urges in developing countries' FX reserves structure, as well as China's own interest, a role for SDR, bitcoin, gold and alike substitutes comes under investigation too. Notwithstanding the fact that Triffin's dilemma makes a spectacular comeback as equally perplexing mirror-image in regard to options available for currencies aspiring to usurp the US dollar on the world's reserve denominator throne, if global recession and financial crisis remnants fail to recede any time soon, yuan can become one of the leading international currencies within only a decade or so.

A dynamic macroeconomic model of the Nigerian economy with emphasis on the monetary sector

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Enang Bassey Udah

2011-08-01

Full Text Available The dynamic nexus between money supply, fiscal deficit, inflation, output and exchange rate management has recently generated much debate in economic literature in Nigeria. To contribute to this debate, this paper uses the co-integration and error correction framework of analysis and also conducts policy simulation experiments to investigate how monetary variables interact with aggregate supply, demand and prices in order to aid stabilization policies. The results show that monetary variables and government finance are linked through government’s net indebtedness to the banking system. The simulation results show that a 20 per cent monetary squeeze would reduce the inflation rate faster than if the reduction in money supply were 10 per cent. This reduction in money supply would also lead to a reduction in output, employment and government expenditure, which may hurt the domestic economy. The paper thus concludes that there is a trade-off between higher GDP growth and inflation in Nigeria.

MONETARY POLICIES AND INDUSTRIAL FLUCTUATIONS IN EAST EUROPEAN COUNTRIES

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Mihaela IFRIM

2015-03-01

Full Text Available Industrial fluctuations are closely related to the evolution of relative prices of produced goods and resources involved in production activity. Industrial fluctuations, as an expression of forces manifested in the real economy, are caused by changes in individuals’ consumption and investment decisions, produced within expansionary monetary policies. The ease of obtaining a bank loan in the context of decreasing interest rates and of larger amounts of money caused an increase in individuals’ demand for goods resulted from longer, capital intensive production processes. The rise in prices of intermediate and capital goods in a faster pace compared to the increase in prices of consumer goods is doubled by the increase of the share of higher order industries in the structure of production. The objective of this paper is to analyze changes in industrial structure of Eastern Europe countries within the policies of quick access to monetary resources. The analyzed states (Bulgaria, the Czech Republic, Hungary, Poland and Romania are part of the European Union and have autonomous monetary policies, meaning that they have not yet adopted the common currency. In all economies analyzed, we find approximately the same patterns of monetary expansion and industrial fluctuations.

The transmission of monetary policy through conventional and Islamic banks

NARCIS (Netherlands)

Zaheer, S.; Ongena, S.; van Wijnbergen, S.J.G.

2013-01-01

We investigate the differences in banks’ responses to monetary policy shocks across bank size, liquidity, and type—i.e., conventional versus Islamic—in Pakistan between 2002:Q2 and 2010:Q1. We find that following a monetary contraction, small banks with liquid balance sheets cut their lending less

17 CFR Table IV to Subpart E of... - Civil Monetary Penalty Inflation Adjustments

Science.gov (United States)

2010-04-01

... Inflation Adjustments IV Table IV to Subpart E of Part 201 Commodity and Securities Exchanges SECURITIES AND... Table IV to Subpart E of Part 201—Civil Monetary Penalty Inflation Adjustments Table IV to Subpart E U.S. Code citation Civil monetary penalty inflation adjustments Civil monetary penalty description Year...

Convergence of solutions of a non-local phase-field system

Czech Academy of Sciences Publication Activity Database

Londen, S.-O.; Petzeltová, Hana

2011-01-01

Roč. 4, č. 3 (2011), s. 653-670 ISSN 1937-1632 R&D Projects: GA AV ČR(CZ) IAA100190606 Institutional research plan: CEZ:AV0Z10190503 Keywords : non-local phase-field systems * separation property * convergence to equilibria Subject RIV: BA - General Mathematics http://www.aimsciences.org/journals/displayArticles.jsp?paperID=5698

A theoretical framework for convergence and continuous dependence of estimates in inverse problems for distributed parameter systems

Science.gov (United States)

Banks, H. T.; Ito, K.

1988-01-01

Numerical techniques for parameter identification in distributed-parameter systems are developed analytically. A general convergence and stability framework (for continuous dependence on observations) is derived for first-order systems on the basis of (1) a weak formulation in terms of sesquilinear forms and (2) the resolvent convergence form of the Trotter-Kato approximation. The extension of this framework to second-order systems is considered.

House Prices and the stance of Monetary Policy.

OpenAIRE

Jarociński, Marek; Smets, Frank

2008-01-01

This paper estimates a Bayesian VAR for the US economy which includes a housing sector and addresses the following questions. Can developments in the housing sector be explained on the basis of developments in real and nominal GDP and interest rates? What are the effects of housing demand shocks on the economy? How does monetary policy affect the housing market? What are the implications of house price developments for the stance of monetary policy? Regarding the latter question, we implement...

Monetary Policy Instruments and Bank Risks in China

OpenAIRE

Zhongyuan Geng; Xue Zhai

2013-01-01

The authors use a panel data regression model to examine the effects of main monetary policy instruments on commercial bank risks in China from 1998 to 2011. The interest rate has a positive effect on bank risk while the interest rate margin, the reserve requirement ratio and open market operation have a negative effect. Among the three monetary policy instruments, the reserve requirement ratio has the greatest effect on bank risk, the interest rate (the interest rate margin) the second large...

Monetary Policy Drivers of Bond and Equity Risks

OpenAIRE

Luis Viceira; Carolin Pflueger; John Campbell

2014-01-01

How do monetary policy rules, monetary policy uncertainty, and macroeconomic shocks affect the risk properties of US Treasury bonds? The exposure of US Treasury bonds to the stock market has moved considerably over time. While it was slightly positive on average over the period 1960-2011, it was unusually high in the 1980s, and negative in the 2000s, a period during which Treasury bonds enabled investors to hedge macroeconomic risks. This paper develops a New Keynesian macroeconomic model wit...

BOLD responses in reward regions to hypothetical and imaginary monetary rewards.

OpenAIRE

Miyapuram Krishna P; Tobler Philippe N; Gregorios-Pippas Lucy; Schultz Wolfram

2012-01-01

Monetary rewards are uniquely human. Because money is easy to quantify and present visually, it is the reward of choice for most fMRI studies, even though it cannot be handed over to participants inside the scanner. A typical fMRI study requires hundreds of trials and thus small amounts of monetary rewards per trial (e.g. 5p) if all trials are to be treated equally. However, small payoffs can have detrimental effects on performance due to their limited buying power. Hypothetical monetary rewa...

Impact of monetary policy on the volatility of stock market in pakistan

OpenAIRE

Abdul Qayyum; Saba Anwa

2010-01-01

This paper addresses the linkages between the monetary policy and the stock market in Pakistan. The estimation technique employed includes Engle Granger two step procedure and the bivariate EGARCH method. The results indicate that any change in the monetary policy stance have a significant impact on the volatility of the stock market. Thus contributing to the ongoing debate in the monetary policy rule literature regarding the proactive and reactive approach.

Rigorous approximation of stationary measures and convergence to equilibrium for iterated function systems

International Nuclear Information System (INIS)

Galatolo, Stefano; Monge, Maurizio; Nisoli, Isaia

2016-01-01

We study the problem of the rigorous computation of the stationary measure and of the rate of convergence to equilibrium of an iterated function system described by a stochastic mixture of two or more dynamical systems that are either all uniformly expanding on the interval, either all contracting. In the expanding case, the associated transfer operators satisfy a Lasota–Yorke inequality, we show how to compute a rigorous approximations of the stationary measure in the L "1 norm and an estimate for the rate of convergence. The rigorous computation requires a computer-aided proof of the contraction of the transfer operators for the maps, and we show that this property propagates to the transfer operators of the IFS. In the contracting case we perform a rigorous approximation of the stationary measure in the Wasserstein–Kantorovich distance and rate of convergence, using the same functional analytic approach. We show that a finite computation can produce a realistic computation of all contraction rates for the whole parameter space. We conclude with a description of the implementation and numerical experiments. (paper)

Monetary Developments and Decolonization in Ethiopia (1941-1952

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Arnaldo Mauri

2010-03-01

Full Text Available The article analyses the reorganization process of the monetary setting in Ethiopia which started in 1941 along with decolonization, when the Italian colonial rule came to an end. The country regained independence and the former Ethiopian empire was restored. The monetary reform in Ethiopia after the liberation during World War II, was a necessary measure to be adopted. Different paths however could have been followed at that moment by the Ethiopian government. The crucial choice made in money matter was to re-establish a national monetary unit instead of keeping the country inside the East African shilling area, as it was envisaged in British designs for the post-war setting of the Horn of Africa. The Ethiopian project unpredictably prevailed at the end of a weary negotiation, due to the chiefly American support in the framework of a new role gained by the United States in this area. The Ethiopian Authorities were, as a consequence, enabled to free themselves from dependence on Great Britain.

Monetary Policy under the Border between Price Stability and Financial Stability

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Irina-Raluca BADEA

2015-09-01

Full Text Available The international financial crisis drew the line for the international and national authorities that conducted and implemented faulty monetary and financial policies, regardless the potential risks that might arise. It was only after the crisis burst when everyone realized the impact the systemic risk can have on the global financial system and, consequently, on every national economy. The conventional point of view is that inflation is the main source of financial instability, but recent evidence points out the fact that reaching the inflation target does not necessarily mean that the financial system is stable. What is the most important is that any source of financial instability should be diminished if not erased, hence preserving financial stability has become an important goal for the authorities, who dispute whether to include it on the objectives list of central banks or authorize another institution to achieve it. Therefore, the main goal of this paper is framing the present monetary policy framework with respect to its objectives and strategies and the necessity to reconsider it in a realistic manner in order to prevent another collapse in case of an economic downturn.

THE ASSET PRICE CHANNEL AND ITS ROLE IN MONETARY POLICY TRANSMISSION

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Dan Horatiu

2013-07-01

Full Text Available his paper addresses the subject of the monetary policy transmission mechanism by focusing on the asset price channel, which is the monetary transmission channel responsible for the propagation of the effects induced by the monetary policy decisions made by the central bank that affect the price of assets. We will analyze the asset price channel by taking a close look at its structure, internal processes and the way it delivers monetary policy throughout the economy, ultimately influencing key variables such as the unemployment rate and the levels of consumption and production. After an introduction dealing with the entire monetary transmission mechanism, its role and purposes, we will focus on the particularities of the asset price channel and the two main ways in which it delivers monetary policy decision effects: through changes in Tobin’s q value, which is the ratio between the market value of a given company and its replacement cost of capital, and through the effect of wealth, both of financial and housing nature, on consumption. In our study, we will consider theoretical aspects and observations, but also empirical evidence that highlights that the exact way in which the asset price channel functions may differ from one economy to another due to differences in the structures of the respective economies and differences in psychology and cultural values of consumers. The deep understanding of the asset price transmission channel is very important for any central bank, as this is the channel that governs key aspects of monetary policy transmission linked to the market value of assets and individual wealth. These values have, as we will see in more detail throughout the paper, an important impact on both consumption and investment, two economic actions that can help the economy, but can also prove to be a crucial element in starting and perpetuating an economic crisis.

Revival of Legacy of Tooke and Gibson: Implications for Monetary Policy

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Rehman Atiq-ur

2015-05-01

Full Text Available The monetary policy rules used by central banks these days are based on the assumption that inflation could be reduced by increasing interest rate. On contrary, Tooke (1774-1858, the forefather of monetary economics, was of the view that the relationship between interest rate and inflation should be positive. His view was based on simple logic, ‘interest is a part of cost, and therefore, the increase in interest rate should increase inflation by increasing cost of production (Tooke, 1838’. Tooke’s view has got support from a number of empirical evidence including Gibson (1923 who found positive correlation between two variables for UK data over a period of 200 years. On the other hand, mainstream economic thinking on which the actual monetary practices are based ignored any possibility of positive relationship between interest rate and inflation throughout the history. The existence of Tooke’s cost side effects of monetary policy is a serious concern because if these effects exist than the use of monetary policy would be counterproductive. Using the data from entire globe, I attempt to explore the nature of relationship between the interest rate and inflation. I found that the data supports the perception of Tooke and Gibson and denies that the effectiveness of monetary policy currently adapted by the correlation between interest rate and inflation is positive. The results are robust to sample size, sample period, and various definitions of interest rate and inflation.

Estimation of Monetary Value of Information on the Internet

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Mohsen Nazari

2015-03-01

Full Text Available This research estimates the monetary value of internet information for each type of information and services by using Hedonic pricing method. The statistic social of this research is high-speed internet users in Tehran. Based on the results, high speed internet users of Tehran consider a positive monetary value for some information types in the internet, in descendent respect, such as film downloading, gaming, News, social network, and music. Also, the results indicates that people with higher education level and people who are subscribed to high speed internet earlier than other people consider more monetary value to use the internet. For generalizing the result of this research, it’s suggested to do this research at other cities of Iran. At last, some applicable suggestions made.

The Impact of Social Pressure and Monetary Incentive on Cognitive Control.

Science.gov (United States)

Ličen, Mina; Hartmann, Frank; Repovš, Grega; Slapničar, Sergeja

2016-01-01

We compare the effects of two prominent organizational control mechanisms-social pressure and monetary incentive-on cognitive control. Cognitive control underlies the human ability to regulate thoughts and actions in the pursuit of behavioral goals. Previous studies show that monetary incentives can contribute to goal-oriented behavior by activating proactive control. There is, however, much less evidence of how social pressure affects cognitive control and task performance. In a within-subject experimental design, we tested 47 subjects performing the AX-CPT task to compare the activation of cognitive control modes under social pressure and monetary incentive beyond mere instructions to perform better. Our results indicate that instructing participants to improve their performance on its own leads to a significant shift from a reactive to a proactive control mode and that both social pressure and monetary incentive further enhance performance.

Markov switching monetary policy in a two-country DSGE model

NARCIS (Netherlands)

Mavromatis, K.

2012-01-01

In this paper I show, using both empirical and theoretical analysis, that changes in monetary policy in one country can have important e.ects on other economies. My ew empirical evidence shows that changes in the monetary policy behaviour of the Fed since the start of the Euro, well captured by a

Effects of Monetary Shocks on Exchange Rate: Empirical Evidence from India

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Sharma Chandan

2017-08-01

Full Text Available This paper examines the effect of monetary policy shocks on exchange rate in a Multiple Indicator Approach (MIA framework. This study has employed a monetary policy index of key monetary policy instruments in India (Bank rate, Cash Reserve Ratio, Repo and Reverse Repo rates. The study finds the empirical evidence for puzzling behavior of price level and exchange rate. Both price and exchange rate increase initially in response to a contractionary policy shock. Policy shocks affect output, inflation and exchange rate to an appreciable extent over a forecasting horizon of one year.

Beyond assemblies: system convergence and multi-materiality.

Science.gov (United States)

Wiscombe, Tom

2012-03-01

The architectural construction industry has become increasingly more specialized over the past 50 years, creating a culture of layer thinking over part-to-whole thinking. Building systems and technologies are often cobbled together in conflicting and uncorrelated ways, even when referred to as 'integrated', such as by way of building information modeling. True integration of building systems requires rethinking how systems and architectural morphologies can push and pull on one another, creating not only innovation in technology but in aesthetics. The revolution in composite materials, with unprecedented plasticity and performance features, opens up a huge range of possibilities for achieving this kind of convergence. Composites by nature fuse envelope and structure, but through various types of inflections, they can also be made to conduct air and fluids through cavities and de-laminations, as well as integrate lighting and energy systems. Assembly as we know it moves away from mineral materials and hardware and toward polymers and 'healing'. Further, when projected into the near-future realm of multi-materiality and 3D manufacturing, possibilities for embedding systems and creating gradients of rigidity and opacity open up, pointing to an entirely new realm of architectural thinking.

Beyond assemblies: system convergence and multi-materiality

International Nuclear Information System (INIS)

Wiscombe, Tom

2012-01-01

The architectural construction industry has become increasingly more specialized over the past 50 years, creating a culture of layer thinking over part-to-whole thinking. Building systems and technologies are often cobbled together in conflicting and uncorrelated ways, even when referred to as 'integrated', such as by way of building information modeling. True integration of building systems requires rethinking how systems and architectural morphologies can push and pull on one another, creating not only innovation in technology but in aesthetics. The revolution in composite materials, with unprecedented plasticity and performance features, opens up a huge range of possibilities for achieving this kind of convergence. Composites by nature fuse envelope and structure, but through various types of inflections, they can also be made to conduct air and fluids through cavities and de-laminations, as well as integrate lighting and energy systems. Assembly as we know it moves away from mineral materials and hardware and toward polymers and 'healing'. Further, when projected into the near-future realm of multi-materiality and 3D manufacturing, possibilities for embedding systems and creating gradients of rigidity and opacity open up, pointing to an entirely new realm of architectural thinking.

A class of convergent neural network dynamics

Science.gov (United States)

Fiedler, Bernold; Gedeon, Tomáš

1998-01-01

We consider a class of systems of differential equations in Rn which exhibits convergent dynamics. We find a Lyapunov function and show that every bounded trajectory converges to the set of equilibria. Our result generalizes the results of Cohen and Grossberg (1983) for convergent neural networks. It replaces the symmetry assumption on the matrix of weights by the assumption on the structure of the connections in the neural network. We prove the convergence result also for a large class of Lotka-Volterra systems. These are naturally defined on the closed positive orthant. We show that there are no heteroclinic cycles on the boundary of the positive orthant for the systems in this class.

Monetary Channels in Brazil through the Lens of a Semi-Structural Model

OpenAIRE

André Minella; Nelson F. Souza-Sobrinho

2009-01-01

We develop and estimate a medium-size, semi-structural model for Brazil's economy during the inflation targeting period. The model captures key features of the economy, and allows us to investigate the transmission mechanisms of monetary policy. We decompose the monetary channels into household interest rate, firm interest rate, and exchange rate channels. We find that the household interest rate channel plays the most important role in explaining output dynamics after a monetary policy shock...

Money, interest and capital accumulation in Karl Marx's economies: a monetary interpretation

OpenAIRE

Hein, Eckhard

2002-01-01

"Starting from Schumpeter's important distinction between 'real analysis' and 'monetary analysis', in this paper it is shown that major elements of Marx's economic theory fall in the camp of monetary analysis and the implications for Marx's theory of capital accumulation are derived. First, Marx's theory of labour value has to be considered a 'monetary theory of value' because 'abstract labour' as the social substance of value cannot be measured without a social standard of val...

Monetary Diet Cost, Diet Quality, and Parental Socioeconomic Status in Spanish Youth.

Directory of Open Access Journals (Sweden)

Helmut Schröder

Full Text Available Using a food-based analysis, healthy dietary patterns in adults are more expensive than less healthy ones; studies are needed in youth. Therefore, the objective of the present study was to determine relationships between monetary daily diet cost, diet quality, and parental socioeconomic status.Data were obtained from a representative national sample of 3534 children and young people in Spain, aged 2 to 24 years. Dietary assessment was performed with a 24-hour recall. Mediterranean diet adherence was measured by the KIDMED questionnaire. Average food cost was calculated from official Spanish government data. Monetary daily diet cost was expressed as euros per day (€/d and euros per day standardized to a 1000kcal diet (€/1000kcal/d.Mean monetary daily diet cost was 3.16±1.57€/d (1.56±0.72€/1000kcal/d. Socioeconomic status was positively associated with monetary daily diet cost and diet quality measured by the KIDMED index (€/d and €/1000kcal/d, p<0.019. High Mediterranean diet adherence (KIDMED score 8-12 was 0.71 €/d (0.28€/1000kcal/d more expensive than low compliance (KIDMED score 0-3. Analysis for nonlinear association between the KIDMED index and monetary daily diet cost per1000kcal showed no further cost increases beyond a KIDMED score of 8 (linear p<0.001; nonlinear p = 0.010.Higher monetary daily diet cost is associated with healthy eating in Spanish youth. Higher socioeconomic status is a determinant for higher monetary daily diet cost and quality.

Markov Switching Monetary Policy in a two-country DSGE model

NARCIS (Netherlands)

Mavromatis, K.

2013-01-01

Using real-time data for the US and the Eurozone I find evidence in favor of 1) regime changes in US monetary policy since 1999 and 2) the fact that the responses inflation and output in the Eurozone are sensitive to the regime of US monetary policy. I examine this case theoretically through the

Convergencia de sistemas de comunicación ópticos e inalámbricos (Converged wireless and optical communication systems)

DEFF Research Database (Denmark)

Tafur Monroy, Idelfonso; Guerrero Gonzalez, Neil; Caballero Jambrina, Antonio

2009-01-01

Users of tele-information services are demanding instant access, everywhere and anytime. Wireless communication systems offers mobility and flexibility while optical fiber based systems offer large bandwidth, secure and lower power consumption for transport of tele-communication signals. None...... of the two technologies separately can satisfy the demands of user for ubiquitous and affordable access to information services. Converged optical and wireless systems offer a solution that combines the best of both technologies. This article review the trends in converged optical-wireless communication...... systems and outline the role that photonic technologies is playing in making the vision of a converged network a reality....

Monetary Policy, Risk-Taking, and Pricing : Evidence from a Quasi-Natural Experiment

NARCIS (Netherlands)

Ioannidou, V.; Ongena, S.; Peydro, J.L.

2009-01-01

We analyse the impact of monetary policy on bank risk-taking and pricing. Bolivia provides us with an excellent experimental setting to identify this impact. Its small economy is not synchronized with the US economy but its banking system is almost fully dollarized. Consequently the US federal funds

Quantification model of the consequences of monetary policy shocks

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Coralia Emilia POPA

2017-11-01

Full Text Available The monetary analysis based on the BVAR (Bayesian Vector Autoregression model is extremely important in the monetary policy implementation strategy, the information provided is important not only for the Central Bank, but also for the economic agents and the population. Therefore, conducting this analysis at the level of Romania helps to understand better the mechanism by which monetary policy is transmitted in order to achieve the set target, namely inflation targeting, but it also provides us with important information regarding the accession to the euro area. The model we are trying to test helps us understand through the correlations between the interest rate, GDP and the inflation rate how monetary policy responds to shocks. The model follows the methodology presented by Sims and Zha (1998 in the paper "Bayesian Methods for Dynamic Multivariate Models and Using the Bayesian Autoregressive Vector". In the analysis of this model, quarterly data for a minimum of three years, three variables are used to make the results relevant. The data needed to model the model are used in logarithmic form, except for the interest rate, and the outcome is applied to a differentiated premium operator. Of the variables used, the interest rate is the only one that does not allow seasonal adjustment.

Monetary Policy, Debt and the Cyclical Behavior of Inventories

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Abdul Ghafar Ismail

2007-01-01

Full Text Available An earlier study on the determinants of inventories investment has been proposed by Lovel (1961. However, the study fails to mention the effects of financial variables. The puzzle prevails on account of imperfect capital markets. This implies that interest rate generally affects inventory investment indirectly through the debt channel. For instance, in the period of tight monetary policy, increasing interest rates have a negative impact on the present value of firms’ collateralizable net worth. In addition, they also weaken firms’ balance sheets as interest expenses also rise up. In imperfect capital markets, this fact indicates an increase in the amount of external financing that firms need, a rise in the premium on external financing that they face, and a reduction in their accumulation of assets, their spending and their production. Given the low adjustment cost that characterizes firms, it will be inventories that firms will initially reduce. Therefore, this paper is contributes to the issue of monetary policy transmission in Malaysia. Our specific attention is limited to the channel of monetary policy on a firm’s inventory. Using micro data, we try to take into account the relevance of the firm’s balance sheet conditions in the transmission of monetary policy.

The monetary transmission mechanism in Brazil: evidence from a var analysis

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Viviane Luporini

2008-03-01

Full Text Available This article presents evidence on the interest channel of the monetary policy for the Brazilian economy of the 1990s analyzing the effects of an unexpected change in the baseline interest rate on output, prices and the exchange rate in a vector autoregression system. Our main results are: a a tightening in the monetary policy affects economic activity immediately, reducing the rate of growth of real GDP; b the exchange rate and prices are affected only after a time interval, with inflation assuming a downward trend only two months after the monetary shock; c results do not change when the specification is controlled for international conditions, commodity prices or other measures of inflation and economic activity; d monetary shocks have a significant impact on the volatility of output and inflation in the benchmark model e monetary shocks have a significant impact on the volatility of the debt/GDP ratio in the control-model.Esse artigo analisa o canal juros do mecanismo de transmissão monetária sobre o produto, preços e taxa de câmbio na economia brasileira dos anos 90 através dos efeitos de uma redução inesperada na taxa básica de juros em um sistema de vetores auto-regressivos. Os principais resultados obtidos são: a um choque monetário afeta imediatamente a atividade econômica, reduzindo a taxa de crescimento do PIB; b a inflação e a taxa de câmbio são afetadas somente após um intervalo de tempo, e a inflação assume uma tendência declinante somente dois meses após o choque de juros; c os resultados são robustos quando controlados para condições internacionais, preço das commodities ou outras medidas de inflação e atividade econômica; d choques monetários afetam significativamente a volatilidade do produto e da inflação no modelo padrão; e choques monetários afetam significativamente a volatilidade da relação dívida/PIB no modelo de controle.

How much monetary policy rules do we need to estimate DSGE model for Russia?

OpenAIRE

Shulgin, Andrei

2014-01-01

This paper presents a three-sector DSGE model for a small open economy under the intermediate exchange rate regime. The central bank balance sheet equations are added to allow introducing two different monetary policy rules in the model. The principal question is how many independent monetary policy rules we need to describe Russian monetary policy in 2001–2012. To get an answer we perform Bayesian estimation of the DSGE model for four different combinations of monetary policy rules. The main...

Application of monetary valuation in Life Cycle Assessment

DEFF Research Database (Denmark)

Weidema, Bo Pedersen; Pizzol, Massimo; Miguel, Brandão

Monetary valuation, or monetarisation, is the determination of the economic value of non-market goods, i.e. goods for which no market exists. Although monetary valuation has a great potential to be applied in Life Cycle Assessment (LCA), in particular in the weighting phase, several challenges...... for LCA. For the two surveys, the total number of respondents was 209. The critial review showed that observed- and revealed-preference methods and the abatement cost method have limited applicability in LCA, whereas the conjoint analysis method and the budget constraint method are the best options...

Reconsidering Money: Monetary Exchange with Additive Transaction Costs

DEFF Research Database (Denmark)

Schröder, Philipp

2001-01-01

Under the assumption of purely additive transaction costs in exchange, the literature on money has a standard example of direct exchange dominating indirect (monetary) exchange. From here it is frequently concluded that subadditive costs (e.g. search costs) must be examined in order to explain...... money. In contrast, this paper presents an additive transaction costs model in which the mere absence of double coincidences of wants suffices to motivate monetary exchange. Furthermore it is found that not all commodity moneys, that are collectively desirable, qualify for the core, but that all fiat...

Financial-real side interactions in the monetary circuit: loving or dangerous hugs?

OpenAIRE

Botta, Alberto; Caverzasi, Eugenio; Tori, Daniele

2015-01-01

Monetary circuit theory is one of the most known attempts to formally describe the functioning of a monetary production economy as centered around the concept of flux-reflux of money. Endogenous money creation by commercial banks allows the circuit to open and firms to implement production processes. Financial markets ‘passively’ close the circuit by intermediating savings via bond and equity issuance. Despite its natural focus on financial-real side links, the monetary circuit literature has...

Convergent synthesis of the HIJKLM ring system of ciguatoxin CTX3C.

Science.gov (United States)

Takamura, Hiroyoshi; Nishiuma, Naoki; Abe, Takashi; Kadota, Isao

2011-09-02

The HIJKLM ring system of ciguatoxin CTX3C was synthesized in a convergent manner. The key steps were a conjugate addition/alkylation sequence, spiroacetalization, intramolecular allylation, ring-closing metathesis, and hydrogenation to form the 36-α-methyl substituent.

THE GLOBAL GOVERNANCE PROBLEM AND THE ROLE OF THE INTERNATIONAL MONETARY FUND

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Sidorova E. A.

2015-06-01

Full Text Available Currently, globalization begins to permeate more and more areas of human activity, therefore it is important question of the complex mechanisms and principles of global governance formation.The article analyzes the essence, subjects and mechanisms for the implementation of the global economic governance. Moreover, it investigates the role and current state of the International Monetary Fund (IMF in the global economy. In conclusion, it clarifies the relationship of the IMF and processes of global governance. Research has shown that it is necessary to create within the IMF more representative, economically and politically balanced system of global governance of the world monetary and financial relations as part of the emerging mechanisms of global economic governance. This article extends the knowledge about the features of the IMF in the forming global governance.

Acceleration of criticality analysis solution convergence by matrix eigenvector for a system with weak neutron interaction

Energy Technology Data Exchange (ETDEWEB)

Nomura, Yasushi; Takada, Tomoyuki; Kuroishi, Takeshi [Japan Atomic Energy Research Inst., Tokai, Ibaraki (Japan). Tokai Research Establishment; Kadotani, Hiroyuki [Shizuoka Sangyo Univ., Iwata, Shizuoka (Japan)

2003-03-01

In the case of Monte Carlo calculation to obtain a neutron multiplication factor for a system of weak neutron interaction, there might be some problems concerning convergence of the solution. Concerning this difficulty in the computer code calculations, theoretical derivation was made from the general neutron transport equation and consideration was given for acceleration of solution convergence by using the matrix eigenvector in this report. Accordingly, matrix eigenvector calculation scheme was incorporated together with procedure to make acceleration of convergence into the continuous energy Monte Carlo code MCNP. Furthermore, effectiveness of acceleration of solution convergence by matrix eigenvector was ascertained with the results obtained by applying to the two OECD/NEA criticality analysis benchmark problems. (author)

Monetary policy during speculative attacks

DEFF Research Database (Denmark)

Bergman, Ulf Michael; Jellingsø, Mads

2010-01-01

This paper extends the currency crises model of Aghion, Bacchetta and Banerjee (2000, 2001, 2004) in different directions. Our main result is that a tight monetary policy can have adverse effects beyond the short term and can potentially cause a currency crisis in the medium term, even in cases w...

INTEGRATION LEVEL OF FINANCIAL AND MANAGEMENT ACCOUNTING SYSTEMS WITH THE ACCOUNTING CONVERGENCE PROCESS AND THE EFFECTIVENESS OF CONTROLLERSHIP

Directory of Open Access Journals (Sweden)

Andréia Carpes Dani

2014-09-01

Full Text Available This study aims to verify the integration level between the financial and management accounting systems as a result of the convergence process with the international accounting standards and of the effectiveness of controllership in Brazilian companies. A descriptive research was undertaken, based on the application of the questionnaire by Angelkort and Weißenberger (2011 to the 500 Best and Biggest of Revista Exame, issue 2011, using a sample of 32 companies that answered the research. The correlations between the integration level of the financial and management accounting systems and the variables “consistency of financial language”, “quality of services provided” and “degree of influence in decision making”, during the convergence period with the international accounting standards, were positive and moderate. It was also observed that the period before the accounting convergence (2004 till 2007 showed a better integration level of the financial and management accounting systems than the accounting convergence period (2008 till 2011. In conclusion, the accounting convergence process increased the integration level of the financial and management accounting systems in the investigated companies, as well as the effectiveness of controllership, particularly in the consistency of the financial language, in the quality of the services provided and in the influence of the controllers’ services on these companies’ decisions.

Money, interest, and capital accumulation in Karl Marx's economics: A monetary interpretation

OpenAIRE

Hein, Eckhard

2002-01-01

Starting from Schumpeter.s important distinction between .real analysis. and .monetary analysis., in this paper it is shown that major elements of Marx.s economic theory fall in the camp of monetary analysis and the implications for Marx.s theory of capital accumulation are derived. First, Marx.s theory of labour value has to be considered a .monetary theory of value. because .abstract labour. as the social substance of value cannot be measured without a social standard of value. Money as a s...

On the monetary nature of the interest rate in Keynes’s thought

OpenAIRE

Giancarlo Bertocco

2011-01-01

Keynes in the General Theory, explains the monetary nature of the interest rate by means of the liquidity preference theory. The objective of this paper is twofold. Fist, to point out the limits of an explanation of the monetary nature of the interest rate and thus of the non-neutrality of money based on the liquidity preference theory. Second, to present a different explanation of the monetary nature of the interest rate based on the arguments with which Keynes, following the General Theory,...

Moneta, attività liquide, velocità di circolazione e politica monetaria. (Money, liquid assets, velocity and monetary policy

Directory of Open Access Journals (Sweden)

G. GARVY

2014-07-01

Full Text Available The present article analyses the significance of the rise in liquid assets in relation to GNP, the related increase in the velocity of money and the declining role of money as a financial asset in the U.S. economy. Moreover, the significance of these developments for monetary policy is considered. The author argues that far from being inimical to the execution of monetary policy, changes in velocity are actually another aspect of the system of checks and balances which characterise the operations of the economic system.JEL: E40, E50, E52

Monetary Expansion and the Banking Lending Channel.

Science.gov (United States)

Tabak, Benjamin Miranda; Moreira, Tito Belchior Silva; Fazio, Dimas Mateus; Cavalcanti, André Luiz Cordeiro; Cunha, George Henrrique de Moura

2016-01-01

This paper examines the bank lending channel, which considers how monetary authority actions affect the variation of loans. We focus on the BRICS (Brazil, Russia, India, China and South Africa) totalizing 1254 banks from five countries in the period 2000-2012 (totalizing 13 years). The empirical results show that the effect of money supply growth on the growth of loans is non-linear and inverted U-shaped. In this context, our results show empirical evidence expansionary monetary policies do not increase the propensity of economic agents to systematically take greater risks on the market. After a certain level of money stock, increases in the money supply do not lead to increased negotiated credit.

A model to establish the monetary value of the man-sievert for public exposure

International Nuclear Information System (INIS)

Schneider, T.; Schieber, C.; Eeckhoudt, L.; Godfroid, P.

2000-01-01

The implementation of cost-benefit analysis for the optimisation of radiation protection relies on the adoption of a monetary value of the man-sievert. From the economic point of view, the monetary value of the man-sievert can be seen as a function reflecting the individual and collective preferences associated with the level of exposures and the specificity of the exposure situations. It must thus integrate several dimensions: one dimension, which is independent of the exposure situation, is related to the potential health effects associated with the level of exposure; other dimensions are related to social and equity consideration, reflecting the characteristics of exposure situation: distribution of individual exposures, individual and social risk perception,... In the case of occupational exposure, CEPN has developed a model to define the monetary values of the man-sievert according to the level of individual exposure. This model has been used by some European nuclear utilities for setting their own values to be used in the process of radiological protection optimisation for workers. The question arising now concerns the establishment of this value for public exposure. For this purpose, we have considered one of the main differences between public and worker exposures: i.e. the existence of compensation systems for the radiation induced health effects if they occur for the workers. In the case of public exposure, such systems do not exist, mainly due to the absence of a permanent individual monitoring of exposures and to the low level of individual exposure. A theoretical model was developed to evaluate the willingness to pay to reduce the probability of occurrence of a radiation induced health effects (i.e. to reduce the level of exposure). It shows that, because of the absence of a compensation system for the public, this willingness to pay should be higher when the probability is reduced for the public than for the workers. The result of the numerical

Monetary Policy after August 2007

Science.gov (United States)

Gertler, Mark

2013-01-01

In this article, the author describes conceptually how to think about the dramatic changes in monetary policy since the sub-prime crisis of August 2007. He also discusses how to incorporate these changes and related economic concepts in the teaching of an undergraduate class in macroeconomics. A distinction is made between conventional and…

Financial crises and monetary policy

NARCIS (Netherlands)

Goderis, B.V.G.

2005-01-01

In the last three decades, many countries and regions around the world have suffered from currency crises. This thesis investigates the causes of such crises and assesses the role of monetary policy as a tool to avoid them or limit the damage they impose. In addition, it studies the impact of the

Financial Stability and Monetary Policy: Need for International Surveillance

OpenAIRE

Gary Hufbauer; Daniel Danxia Xie

2010-01-01

In this article, we propose a new monetary framework that defines a broader set of assets, De Facto Money (DFM), as the benchmark for improving financial stability. DFM is defined as traditional monetary aggregates plus other liquid assets such as stocks and bonds. Empirical evidence for the USA, other Organisation for Economic Co-operation and Development countries, and a few emerging countries lends strong support for the connection between exceptionally fast growth of DFM and subsequent fi...

Fear of Floating: An optimal discretionary monetary policy analysis

OpenAIRE

Madhavi Bokil

2005-01-01

This paper explores the idea that “Fear of Floating” and accompanying pro-cyclical interest rate policies observed in the case of some emerging market economies may be justified as an optimal discretionary monetary policy response to shocks. The paper also examines how the differences in monetary policies may lead to different degrees of this fear. These questions are addressed with a small open economy, new- Keynesian model with endogenous capital accumulation and sticky prices. The economy ...

The ECB monetary policy strategy and the money market

OpenAIRE

Gaspar, Vítor; Pérez Quirós, Gabriel; Sicilia, Jorge

2001-01-01

This paper aims at contributing to the understanding of how the ECB conducts monetary policy as seen from a money market perspective. More specifically it covers two different issues. First, it looks at the 'learning period' for banks since the Eurosystem started implementing the single monetary policy. It shows that during the first three weeks of 1999 the narrow corridor in place during this period was effective in limiting daily volatility of the money market overnight rates. In addition, ...

Interest Rate Dynamics and Monetary Policy Implementation in Switzerland

OpenAIRE

Puriya Abbassi; Dieter Nautz; Christian Offermanns

2010-01-01

The maturity of the operational target of monetary policy is a distinguishing feature of the SNB's operational framework of monetary policy. While most central banks use targets for the overnight rate to signal the policy-intended interest rate level, the SNB announces a target range for the three-month Libor. This paper investigates the working and the consequences of the SNB's unique operational framework for the behavior of Swiss money market rates before and during the financial crisis.

Convergence of Networks

DEFF Research Database (Denmark)

Prasad, Ramjee; Ruggieri, Marina

2008-01-01

The paper focuses on the revolutionary changes that could characterise the future of networks. Those changes involve many aspects in the conceivement and exploitation of networks: architecture, services, technologies and modeling. The convergence of wired and wireless technologies along...... with the integration of system componennts and the convergence of services (e.g. communications and navigation) are only some of the elements that shape the perpsected mosaic. Authors delineate this vision, highlighting the presence of the space and stratospheric components and the related services as building block...

Modern Paradigm in Macroeconomic Monetary Theories

Directory of Open Access Journals (Sweden)

Daniel Lipară

2016-01-01

We appreciated that in order to achieve macroeconomic stability a mix between monetary andfiscal policies is needed, fixed rules should be applied in interdependence with discretionarygovernment measures and acting upon incomes is the best way to fight against inflation.

Stability of Monetary Unions : Lessons from the Break-Up of Czechoslovakia

NARCIS (Netherlands)

Fidrmuc, J.; Horváth, J.

1998-01-01

In 1993, Czechoslovakia experienced a two-fold break-up: On January 1st, the country disintegrated as a political union, while preserving an economic and monetary union. Then, the Czech-Slovak monetary union collapsed on February 8th. We analyze the economic background of the two break-ups, and

Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation

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Syed Tehseen Jawaid

2011-01-01

Full Text Available This study empirically examines the effect of monetary, fiscal and trade policy on economic growth in Pakistan using annual time series data from 1981 to 2009. Money supply, government expenditure and trade openness are used as proxies of monetary, fiscal and trade policy respectively. Cointegration and error correction model indicate the existence of positive significant long run and short run relationship of monetary and fiscal policy with economic growth. Result also indicates that monetary policy is more effective than fiscal policy in Pakistan. In contrast, trade policy has insignificant effect on economic growth both in the short run and in the long run. In light of the findings, it is suggested that the policy makers should focus more on monetary policy in order to ensure economic growth in the country. It is also recommended that further research should be conducted to find out such components of exports and imports which lead to the ineffectiveness of trade policy to enhance economic growth in Pakistan.

Assessment of the monetary policy transmission mechanism in the new EU member states

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Bungin Sanja

2016-01-01

Full Text Available In order to completely understand and analyse the transmission mechanism, it is necessary to observe all factors conditioning its overall efficiency as well as the efficiency of individual transmission channels. This paper focuses on countries that have successfully passed the transition period and have experience with implementing different monetary policy regimes. The evolution of monetary policy resulted in the development of instruments through which central banks influence the real sector activity by means of a transmission mechanism. The empirical analysis based on econometric tools investigates the efficiency of transmission mechanism channels, or more precisely, their significance in the monetary targeting regime. With a view to reaching the conclusion about the direction in which it is necessary to develop the structure of the real and financial sector, aimed at a better functioning of monetary policy instruments, the paper features a theoretical analysis of the characteristics of the monetary policy in the developed economies, as well as the structural characteristics of these economies.

Vadose zone flow convergence test suite

Energy Technology Data Exchange (ETDEWEB)

Butcher, B. T. [Savannah River Site (SRS), Aiken, SC (United States). Savannah River National Lab. (SRNL)

2017-06-05

Performance Assessment (PA) simulations for engineered disposal systems at the Savannah River Site involve highly contrasting materials and moisture conditions at and near saturation. These conditions cause severe convergence difficulties that typically result in unacceptable convergence or long simulation times or excessive analyst effort. Adequate convergence is usually achieved in a trial-anderror manner by applying under-relaxation to the Saturation or Pressure variable, in a series of everdecreasing RELAxation values. SRNL would like a more efficient scheme implemented inside PORFLOW to achieve flow convergence in a more reliable and efficient manner. To this end, a suite of test problems that illustrate these convergence problems is provided to facilitate diagnosis and development of an improved convergence strategy. The attached files are being transmitted to you describing the test problem and proposed resolution.

Optimal Operational Monetary Policy Rules in an Endogenous Growth Model: a calibrated analysis

OpenAIRE

Arato, Hiroki

2009-01-01

This paper constructs an endogenous growth New Keynesian model and considers growth and welfare effect of Taylor-type (operational) monetary policy rules. The Ramsey equilibrium and optimal operational monetary policy rule is also computed. In the calibrated model, the Ramseyoptimal volatility of inflation rate is smaller than that in standard exogenous growth New Keynesian model with physical capital accumulation. Optimal operational monetary policy rule makes nominal interest rate respond s...

Study of the Convergence in State Estimators for LTI Systems with Event Detection

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Juan C. Posada

2016-01-01

Full Text Available The methods frequently used to estimate the state of an LTI system require that the precise value of the output variable is known at all times, or at equidistant sampling times. In LTI systems, in which the output signal is measured through binary sensors (detectors, the traditional way of state observers design is not applicable even though the system has a complete observability matrix. This type of state observers design is known as passive. It is necessary, then, to introduce a new state estimation technique, which allows reckoning the state from the information of the variable’s crossing through a detector’s action threshold (switch. This paper seeks, therefore, to study the convergence in this type of estimators in finite time, allowing establishing, theoretically, whether some family of the proposed models can be estimated in a convergent way through the use of the estimation technique based on events.

New Member States of the EU and EMU – Convergence and the Financial Crisis

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Ines Kersan-Škabić

2010-07-01

Full Text Available The theory of the Optimum Currency Area (OCA clearly accentuates the need for common economic characteristics among states if it is to work well. This paper analyses the extent to which the New Member States of the European Union (NMS satisfy the criteria of nominal and real convergence. Four of these Member States have introduced the Euro, whereas the rest are at different stages of becoming part of the Economic and Monetary Union (EMU. A financial crisis of global proportions implies a number of economic problems in all of the Member States of the EU, especially in the NMS where the new issues have added up to the already grave consequences of the transition period. What is needed is more unity and co-operation within the EU as well as significant financial aid from the IMF and the EU to the New Member States in order to sustain stability in the crisis period. The crisis has again raised the issue of introducing the Euro since membership of the EMU would buffer the effects of the financial crisis provided that the business cycles of the Member States were synchronized. Otherwise an independent monetary policy represents a key instrument in the liquidity regulation of the economy.

The impact of Monetary Policy on the economic growth of Nigeria ...

African Journals Online (AJOL)

Studies show that CBN Monetary Policy measures are effective in regulating both the monetary and real sector aggregates such as employment, prices, level of output and the rate of economic growth. Empirical findings from this study indicate that average price and labour force have significant influence on Gross Domestic ...

The adaptation of monetary policy to the constraints of the global financial crisis by central banks of ASEAN-5 countries

Directory of Open Access Journals (Sweden)

Sorina BOTIŞ

2015-12-01

Full Text Available Global financial crisis represented an important test for central banks, generating multiple challenges that gave rise to both expanding their monetary policy tools and redefining its role in the financial system. The present work aims to identify the characteristics of the monetary policy by the central banks of the five countries belonging to ASEAN-5 Group(Indonesia, Malaysia, the Philippines, Singapore and Thailand, during and after the outbreak of the international financial crisis. For this purpose we carried out a comparative analysis between the five central bank s belonging to the Group, both in terms of the challenges of the monetary policy and the type of measures taken in response to the first. The analysis shows that central banks have different levels of responsibilities, corresponding to the internal economic and financial realities, and also different ways of adaptation and adjustment of their monetary policy.

Testing of money multiplier model for Pakistan: does monetary base carry any information?

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Muhammad Arshad Khan

2010-02-01

Full Text Available This paper tests the constancy and stationarity of mechanic version of the money multiplier model for Pakistan using monthly data over the period 1972M1-2009M2. We split the data into pre-liberalization (1972M1-1990M12 and post-liberalization (1991M1-2009M2 periods to examine the impact of financial sector reforms. We first examine the constancy and stationarity of the money multiplier and the results suggest the money multiplier remains non-stationary for the entire sample period and sub-periods. We then tested cointegration between money supply and monetary base and find the evidence of cointegration between two variables for the entire period and two sub-periods. The coefficient restrictions are satisfied only for the post-liberalization period. Two-way long-run causality between money supply and monetary base is found for the entire period and post-liberalization. For the post-liberalization period the evidence of short-run causality running from monetary base to money supply is also identified. On the whole, the results suggest that money multiplier model can serve as framework for conducting short-run monetary policy in Pakistan. However, the monetary authority may consider the co-movements between money supply and reserve money at the time of conducting monetary policy.

Assessing the Impact of the ECB's Monetary Policy on the Stock Markets: A Sectoral View

OpenAIRE

Konstantin Kholodilin; Alberto Montagnoli; Oreste Napolitano; Boriss Siliverstovs

2008-01-01

This paper analyzes the response of the European stock markets to the monetary policy shocks by the European Central Bank using the heteroskedasticity based approach of Rigobon (2003). We find that monetary policy tightening has a heterogeneous impact on the Euro Area sectors on the day the monetary policy is publicly announced. Furthermore, we provide statistical evidence against the use of the popular event study approach when assessing the impact of monetary policy shocks on the stock mark...

COMPARISON OF SIMPLE SUM AND DIVISIA MONETARY AGGREGATES USING PANEL DATA ANALYSIS

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Sadullah CELIK

2009-07-01

Full Text Available It is well documented that financial innovation has led to poor performance of simple sum method of monetary aggregation destabilizing the historical relationship between monetary aggregates and ultimate target variables like rate of growth and rate of unemployment during the liberalization period of 1980s. This study tries to emphasize the superiority of an alternative method of aggregation over the simple sum method, namely Divisia monetary aggregates, employing panel data analysis for United States, United Kingdom, Euro Area and Japan for the period between 1980Q1 and 1993Q3. After investigating the order of stationarity of the panel data set through several panel unit root tests, we perform advanced panel cointegration tests to check the existence of a long run link between the Divisia monetary aggregates and income and interest rates in a simple Keynesian money demand function.

Monetary Poverty, Material Deprivation and Consistent Poverty in Portugal

OpenAIRE

Carlos Farinha Rodrigues; Isabel Andrade

2012-01-01

In this paper we use the Portuguese component of the European Union Statistics on Income and Living Conditions {EU-SILC) to develop a measure of consistent poverty in Portugal. It is widely agreed that being poor does not simply mean not having enough monetary resources. It also reflects a lack of access to the resources required to enjoy a minimum standard of living and participation in the society one belor]gs to. The coexistence of material deprivation and monetary poverty leads ...

Humans Integrate Monetary and Liquid Incentives to Motivate Cognitive Task Performance

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Debbie Marianne Yee

2016-01-01

Full Text Available It is unequivocal that a wide variety of incentives can motivate behavior. However, few studies have explicitly examined whether and how different incentives are integrated in terms of their motivational influence. The current study examines the combined effects of monetary and liquid incentives on cognitive processing, and whether appetitive and aversive incentives have distinct influences. We introduce a novel task paradigm, in which participants perform cued task-switching for monetary rewards that vary parametrically across trials, with liquid incentives serving as post-trial performance feedback. Critically, the symbolic meaning of the liquid was held constant (indicating successful reward attainment, while liquid valence was blocked. In the first experiment, monetary rewards combined additively with appetitive liquid feedback to improve subject task performance. Aversive liquid feedback counteracted monetary reward effects in low monetary reward trials, particularly in a subset of participants who tended to avoid responding under these conditions. Self-report motivation ratings predicted behavioral performance above and beyond experimental effects. A follow-up experiment replicated the predictive power of motivation ratings even when only appetitive liquids were used, suggesting that ratings reflect idiosyncratic subjective values of, rather than categorical differences between, the liquid incentives. Together, the findings indicate an integrative relationship between primary and secondary incentives and potentially dissociable influences in modulating motivational value, while informing hypotheses regarding candidate neural mechanisms.

Humans Integrate Monetary and Liquid Incentives to Motivate Cognitive Task Performance

Science.gov (United States)

Yee, Debbie M.; Krug, Marie K.; Allen, Ariel Z.; Braver, Todd S.

2016-01-01

It is unequivocal that a wide variety of incentives can motivate behavior. However, few studies have explicitly examined whether and how different incentives are integrated in terms of their motivational influence. The current study examines the combined effects of monetary and liquid incentives on cognitive processing, and whether appetitive and aversive incentives have distinct influences. We introduce a novel task paradigm, in which participants perform cued task-switching for monetary rewards that vary parametrically across trials, with liquid incentives serving as post-trial performance feedback. Critically, the symbolic meaning of the liquid was held constant (indicating successful reward attainment), while liquid valence was blocked. In the first experiment, monetary rewards combined additively with appetitive liquid feedback to improve subject task performance. Aversive liquid feedback counteracted monetary reward effects in low monetary reward trials, particularly in a subset of participants who tended to avoid responding under these conditions. Self-report motivation ratings predicted behavioral performance above and beyond experimental effects. A follow-up experiment replicated the predictive power of motivation ratings even when only appetitive liquids were used, suggesting that ratings reflect idiosyncratic subjective values of, rather than categorical differences between, the liquid incentives. Together, the findings indicate an integrative relationship between primary and secondary incentives and potentially dissociable influences in modulating motivational value, while informing hypotheses regarding candidate neural mechanisms. PMID:26834668

Financial Constraints and the Response of Business Investment to Monetary Policy Shocks

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Haase Timothy J.

2016-09-01

Full Text Available In this study I investigate what impact monetary policy shocks have on firms’ fixed investment, the less liquid portion of gross investment that requires more planning. I account for firms facing financial constraints firms by utilizing a common measure of asset size, which is used in previous literature. I use two exogenous, continuous series of monetary policy shocks to show that constrained firms have statistically different responses to policy than unconstrained firms. Specifically, I find that constrained firms’ fixed investment significantly responds more to monetary policy shocks than unconstrained firms.

Neural basis of the undermining effect of monetary reward on intrinsic motivation.

Science.gov (United States)

Murayama, Kou; Matsumoto, Madoka; Izuma, Keise; Matsumoto, Kenji

2010-12-07

Contrary to the widespread belief that people are positively motivated by reward incentives, some studies have shown that performance-based extrinsic reward can actually undermine a person's intrinsic motivation to engage in a task. This "undermining effect" has timely practical implications, given the burgeoning of performance-based incentive systems in contemporary society. It also presents a theoretical challenge for economic and reinforcement learning theories, which tend to assume that monetary incentives monotonically increase motivation. Despite the practical and theoretical importance of this provocative phenomenon, however, little is known about its neural basis. Herein we induced the behavioral undermining effect using a newly developed task, and we tracked its neural correlates using functional MRI. Our results show that performance-based monetary reward indeed undermines intrinsic motivation, as assessed by the number of voluntary engagements in the task. We found that activity in the anterior striatum and the prefrontal areas decreased along with this behavioral undermining effect. These findings suggest that the corticobasal ganglia valuation system underlies the undermining effect through the integration of extrinsic reward value and intrinsic task value.

BOLD responses in reward regions to hypothetical and imaginary monetary rewards

NARCIS (Netherlands)

Miyapuram, K.P.; Tobler, P.N.; Gregorios-Pippas, L.; Schultz, W.

2012-01-01

Monetary rewards are uniquely human. Because money is easy to quantify and present visually, it is the reward of choice for most fMRI studies, even though it cannot be handed over to participants inside the scanner. A typical fMRI study requires hundreds of trials and thus small amounts of monetary

"Financial Bubbles" and Monetary Policy

Science.gov (United States)

Tikhonov, Yuriy A.; Pudovkina, Olga E.; Permjakova, Juliana V.

2016-01-01

The relevance of this research is caused by the need of strengthening a role of monetary regulators to prevent financial bubbles in the financial markets. The aim of the article is the analysis of a problem of crisis phenomena in the markets of financial assets owing to an inadequate growth of their cost, owing to subjective reasons. The leading…

The need for monetary information within corporate water accounting.

Science.gov (United States)

Burritt, Roger L; Christ, Katherine L

2017-10-01

A conceptual discussion is provided about the need to add monetary data to water accounting initiatives and how best to achieve this if companies are to become aware of the water crisis and to take actions to improve water management. Analysis of current water accounting initiatives reveals the monetary business case for companies to improve water management is rarely considered, there being a focus on physical information about water use. Three possibilities emerge for mainstreaming the integration of monetization into water accounting: add-on to existing water accounting frameworks and tools, develop new tools which include physical and monetary information from the start, and develop environmental management accounting (EMA) into a water-specific application and set of tools. The paper appraises these three alternatives and concludes that development of EMA would be the best way forward. Suggestions for further research include the need to examine the use of a transdisciplinary method to address the complexities of water accounting. Copyright © 2017 Elsevier Ltd. All rights reserved.

Delayed discounting of pain with and without monetary reward

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Kicman Paweł

2017-12-01

Full Text Available We investigated the effect of monetary rewards on the rate of pain discounting. Our aim, also, was to understand the effect of previous painful dental experiences on the rate of discounting pain. Two groups (N = 148 completed a discounting task. In the first group, delayed pain was weaker than immediate pain, and in the second group delayed pain was stronger than immediate pain. Two conditions were studied: pain was either accompanied by a monetary reward or not. We found that people preferred immediate pain when it was weaker than delayed pain; however, when delayed pain was stronger than immediate pain, there was no clear preference. In both groups the preference for immediate pain was higher when pain was accompanied by a monetary reward. Previous painful experiences were not related to the rate of discounting. It was concluded that the preference for delayed pain depends on the intensity of pain, and it can be modified by rewards that accompany pain.

Labour market asymmetries in a monetary union

DEFF Research Database (Denmark)

Seneca, Martin; Andersen, Torben M.

This paper takes a first step in analysing how a monetary union performs in the presence of labour market asymmetries. Differences in wage flexibility, market power and country sizes are allowed for in a setting with both countryspecific and aggregate shocks. The implications of asymmetries...... is not strictly increasing in nominal rigidities but hump-shaped. Moreover, a disproportionate share of the consequences of wage inflexibility may fall on small countries. In the case of country-specific shocks, a country unambiguously benefits in terms of macroeconomic stability by becoming more flexible, while...... this is not necessarily the case for aggregate shocks. There may thus be a tension between the degree of flexibility considered optimal at the country level and at the aggregate level within the monetary union....

Convergence accommodation to convergence CA/C ratio: convergence versus divergence.

Science.gov (United States)

Simmons, Joshua M; Firth, Alison Y

2014-09-01

To determine whether the convergence accommodation to convergence (CA/C) ratio during divergence with base-in (BI) prisms is of a similar or different magnitude to that measured during convergence with base-out (BO) prisms. Eighteen participants with normal binocular single vision were recruited. The participants viewed a pseudo-Gaussian target, which consisted of a light emitting diode (LED) behind a diffusing screen at 40 cm. After 5 minutes of dark adaptation, the refractive status of the eye was measured without any prism using a Shin-Nippon SRW-5000 autorefractor. The participant held the selected prism (5Δ or 10Δ BO or BI, counterbalanced) in front of their right eye and obtained a single, fused image of the target while refractive measures were taken with each. A 30-second rest period was given between measurements. The mean age of the participants was 20.6±3.22 years. The mean CA/C ratios for the 5Δ BO, 10Δ BO, 5Δ BI, and 10Δ BI were 0.108 (±0.074) D/Δ, 0.110 (±0.056) D/Δ, 0.100 (±0.090) D/Δ, and 0.089 (±0.055) D/Δ, respectively. A 2-factor repeated measures ANOVA found that the CA/C ratio did not significantly change with differing levels of prism-induced convergence and divergence (p=0.649). Change in accommodation induced by manipulating vergence is similar whether convergence or divergence are induced. The CA/C ratio did not show any change with differing levels of prism-induced convergence and divergence.

The Interaction of Monetary and Fiscal Policy in the Countries of the Visegrad Group

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Jan Janků

2014-01-01

Full Text Available 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.

Monetary policy change of the Central bank of Poland

Directory of Open Access Journals (Sweden)

Kraś Ireneusz

2015-07-01

Full Text Available The National Bank of Poland is an institution which, in conjunction with the government is responsible for the implementation of country’s economic policy reinforces its democratic character. Provisions of its operation are governed by the Constitution of The Republic of Poland and by the Act on the National Bank of Poland. To this end, the objective of the present research is to analyse the proposed amendments in the Act on the NBP. The latter concerns the amendment procedures, term of office and the rotations and numbers of Monetary Policy Council. The remaining part of the analyses is dedicated to the issue of dismissal of a MPC’s member in conjunction with the prohibition of occupying other positions, the adoption of the NBP’s financial statements and the separation of instruments of monetary policy’s instruments for stability of domestic financial system. Introduced changes in the proposed draft reduce the independence of the NBP while making it more subject to the Cabinet. Following the result of further consultations on the draft of Act on the NBP, provisions which reduce the independence of the NBP shall be partially removed.

Improvement on image quality of single photon ECT with converging collimator system

International Nuclear Information System (INIS)

Murayama, Hideo; Nohara, Norimasa; Tanaka, Eiichi

1986-01-01

Single photon emission computed tomography (SPECT) with converging collimator system was proposed to improve quality of reconstructed images. The collimator system was designed to enhance sensitivity at the center region of field-of-view, where the probability photons escape the attenuating medium is smaller than at the off-center region. In order to evaluate efficiency of the improvement on image quality, the weighting function of projection, which is defined as relative sensitivity to the average on the lateral sampling of projection, was adopted to the image reconstruction algorithm of Radial Post Correction method. Statistical mean square noise in a reconstructed image was formulated in this method. Simulation studies using typical weighting function showed that center-enhanced weighting function brings effective improvement on image quality, especially, at the center region of cold area surrounded by annularly distributed activity. A new SPECT system was proposed as one example of the converging collimator systems. The system is composed of four gamma cameras with four fan-beam collimators, which have different focal distances one another. Simple simulation studies showed that the proposed system has reasonable center-enhanced weighting function, and the image quality based on the proposed system was fairly improved as compared with one based on uniform weighting function at the center region of the field-of-view. (author)

The convergence problem for dissipative autonomous systems classical methods and recent advances

CERN Document Server

Haraux, Alain

2015-01-01

The book investigates classical and more recent methods of study for the asymptotic behavior of dissipative continuous dynamical systems with applications to ordinary and partial differential equations, the main question being convergence (or not) of the solutions to an equilibrium. After reviewing the basic concepts of topological dynamics and the definition of gradient-like systems on a metric space, the authors present a comprehensive exposition of stability theory relying on the so-called linearization method. For the convergence problem itself, when the set of equilibria is infinite, the only general results that do not require very special features of the non-linearities are presently consequences of a gradient inequality discovered by S. Lojasiewicz. The application of this inequality jointly with the so-called Liapunov-Schmidt reduction requires a rigorous exposition of Semi-Fredholm operator theory and the theory of real analytic maps on infinite dimensional Banach spaces, which cannot be found anywh...

75 FR 57230 - 340B Drug Pricing Program Manufacturer Civil Monetary Penalties

Science.gov (United States)

2010-09-20

... Civil Monetary Penalties AGENCY: Health Resources and Services Administration, HHS. ACTION: Advance notice of proposed rulemaking and request for comments. SUMMARY: Section 602 of Public Law 102-585, the... of civil monetary penalties for manufacturers that knowingly and intentionally overcharge a covered...

The monetary value of the collective dose equivalent unit (person-rem)

International Nuclear Information System (INIS)

Rodgers, Reginald C.

1978-01-01

In the design and operation of nuclear power reactor facilities, it is recommended that radiation exposures to the workers and the general public be kept as 'low as reasonably achievable' (ALARA). In the process of implementing this principle cost-benefit evaluations are part of the decision making process. For this reason a monetary value has to be assigned to the collective dose equivalent unit (person-rem). The various factors such as medical health care, societal penalty and manpower replacement/saving are essential ingredients to determine a monetary value for the person-rem. These factors and their dependence on the level of risk (or exposure level) are evaluated. Monetary values of well under $100 are determined for the public dose equivalent unit. The occupational worker person-rem value is determined to be in the range of $500 to about $5000 depending on the exposure level and the type of worker and his affiliation, i.e., temporary or permanent. A discussion of the variability and the range of the monetary values will be presented. (author)

Formation and Dissolution of Monetary Unions: Evidence from Europe, and Lessons for Elsewhere

OpenAIRE

Richard Pomfret

2003-01-01

With the establishment of the euro, many commentators have drawn positive lessons from European monetary union for monetary integration in other parts of the world. This paper argues that the European experience of the 1990s is richer than a simple story of the inevitability of monetary integration. The dissolution of the Yugoslav, Czechoslovak and Soviet currency areas between 1991 and 1993 meant that Europe had more independent currencies in 2002 than it did in 1991. These developments are ...

Optimization of Simple Monetary Policy Rules on the Base of Estimated DSGE-model

OpenAIRE

Shulgin, A.

2015-01-01

Optimization of coefficients in monetary policy rules is performed on the base of the DSGE-model with two independent monetary policy instruments estimated on the Russian data. It was found that welfare maximizing policy rules lead to inadequate result and pro-cyclical monetary policy. Optimal coefficients in Taylor rule and exchange rate rule allow to decrease volatility estimated on Russian data of 2001-2012 by about 20%. The degree of exchange rate flexibility parameter was found to be low...

Monetary policy, banking and heterogeneous agents

NARCIS (Netherlands)

Wolski, M.

2012-01-01

The influence of heterogeneous expectations on monetary policy performance has gained a lot of attention in the recent years. It proved to be an important factor that, under some circumstances, may even destabilize the economy (Massaro, 2012). This paper investigates the phenomenon of heterogeneous

Rules and Discretion in Monetary Policy: Is the Response of the Stock Market Rational?

Directory of Open Access Journals (Sweden)

Ion-Iulian MARINESCU

2015-04-01

Full Text Available We investigate the effects of the monetary policy conduct on the domestic capital market for a sample of developed countries where the capital market plays a significant role in the economy. We break down the policy rate innovations in rules-based and discretionary components in order to determine the degree of prudentiality in the monetary policy conduct and we study their accounts with respect to capital market rationality. The rules-based component is determined using an interpolated vanilla Taylor-rule policy rate at the event date and the discretionary component is obtained by subtracting the rules-based rate from the target monetary policy rate innovation. Using an event study approach, we analyze the impact of monetary policy components on the returns of the stock market and we determine that the conduct of the monetary policy can cause irrational responses of the capital market. More than that, we show, for the analyzed countries, that if the general level of discretion in the monetary policy is high the response of the stock market becomes increasingly erratic, indicating that forward guidance may help reduce uncertainty on capital markets.

Concordance between monetary and sexual delay discounting in men who have sex with men.

Science.gov (United States)

Jones, Jeb; Guest, Jodie L; Sullivan, Patrick S; Kramer, Michael R; Jenness, Samuel M; Sales, Jessica M

2017-12-07

Background: Delay discounting has been found to be associated with numerous health-related outcomes, including risky sexual behaviour. To date, it is unclear whether delay discounting measured in different domains is associated within individuals. The goal of this study was to assess the concordance of monetary and sexual delay discounting in men who have sex with men. Methods: Participants completed an online survey, including the Monetary Choice Questionnaire and the Sexual Discounting Task. Linear regression models were used to assess the association between monetary and sexual discount rates. Results: Sexual discount rates did not predict monetary discount rates. There was a substantial amount of clustering of sexual discount rates, requiring sexual discounting data to be categorised. Conclusions: Monetary and sexual delay discounting are distinct processes that are not necessarily associated within individuals, and monetary delay discounting is not an appropriate proxy measure for sexual impulsivity. Data from the Sexual Discounting Task are typically rank-transformed for analysis. These data suggest that this might be an invalid method of analysis. Future studies should investigate the distribution of their data to determine if it is appropriate to analyse sexual discounting data as a continuous measure.

Monetary Diet Cost, Diet Quality, and Parental Socioeconomic Status in Spanish Youth

Science.gov (United States)

Ribas-Barba, Lourdes; Pérez-Rodrigo, Carmen; Bawaked, Rowaedh Ahmed; Fíto, Montserrat; Serra-Majem, Lluis

2016-01-01

Background Using a food-based analysis, healthy dietary patterns in adults are more expensive than less healthy ones; studies are needed in youth. Therefore, the objective of the present study was to determine relationships between monetary daily diet cost, diet quality, and parental socioeconomic status. Design and Methods Data were obtained from a representative national sample of 3534 children and young people in Spain, aged 2 to 24 years. Dietary assessment was performed with a 24-hour recall. Mediterranean diet adherence was measured by the KIDMED questionnaire. Average food cost was calculated from official Spanish government data. Monetary daily diet cost was expressed as euros per day (€/d) and euros per day standardized to a 1000kcal diet (€/1000kcal/d). Results Mean monetary daily diet cost was 3.16±1.57€/d (1.56±0.72€/1000kcal/d). Socioeconomic status was positively associated with monetary daily diet cost and diet quality measured by the KIDMED index (€/d and €/1000kcal/d, pdiet adherence (KIDMED score 8–12) was 0.71 €/d (0.28€/1000kcal/d) more expensive than low compliance (KIDMED score 0–3). Analysis for nonlinear association between the KIDMED index and monetary daily diet cost per1000kcal showed no further cost increases beyond a KIDMED score of 8 (linear pdiet cost is associated with healthy eating in Spanish youth. Higher socioeconomic status is a determinant for higher monetary daily diet cost and quality. PMID:27622518

The E-Monetary Theory

OpenAIRE

Ngotran, Duong

2016-01-01

We develop a dynamic model with two types of electronic money: reserves for transactions between bankers and zero-maturity deposits for transactions in the non-bank private sector. Using this model, we assess the efficacy of unconventional monetary policy since the Great Recession. After quantitative easing, keeping the interest on reserves at zero too long will create deflation. The central bank can safely get out of the ``low rate-cum-deflation'' trap by ``raising rate and raising money sup...

Floating against the tide : Spanish monetary policy, 1870-1931

OpenAIRE

Martín-Aceña, Pablo; Martínez Ruiz, Elena; Nogues-Marco, Pilar

2011-01-01

The gold standard began to emerge as a universal monetary system in the late 1870s, and it had spread throughout the world economy by 1900. It was unusual for nations to be off the gold standard, and it meant that they were detached from the international financial community. Spain never joined the gold standard club in any of its varieties, either before or after 1914. Unlike the vast majority of the European currencies, the peseta’s exchange rate fluctuated, sometimes widely, against gold a...

Innovazione finanziaria e controllo monetario. (Financial innovation and monetary control in Italy

Directory of Open Access Journals (Sweden)

F. COTULA

2013-12-01

Full Text Available Sempre più spesso le pressioni della deregulation e della concorrenza hanno promosso l'innovazione nello sviluppo di strumenti finanziari . Nel caso dell' Italia, la pressione per l'innovazione è nata dalla necessità di finanziare il fabbisogno del settore pubblico e gli effetti dell'inflazione . Come risultato , gli strumenti di finanziamento sono passati da obbligazioni a lungo termine per il disegno di legge di tesoreria a breve termine . Tuttavia , questo può portare a un'eccessiva offerta di liquidità con conseguenti problemi per i controlli monetari. Tali fattori renderà più difficile utilizzare aggregati monetari come guida alla politica monetaria in futuroIncreasingly the pressures of deregulation and competition have promoted innovation in the development of financial instruments. In the case of Italy the pressure for innovation has arisen from the need to finance the public sector borrowing requirement and the effects of inflation. As a result, funding instruments have been switched from longer-term bonds to the shorter-term treasury bill. However, this can lead to excessive supply of liquid assets with consequent problems for monetary controls. Such factors will make it more difficult to use monetary aggregates as a guide to monetary policy in the future. JEL: E31, E40, E52

A Monetary Policy Simulation Game

Science.gov (United States)

Lengwiler, Yvan

2004-01-01

The author presents a computer game that puts the player in the role of a central bank governor. The game is a stochastic simulation of a standard reduced form macro model, and the user interacts with this simulation by manipulating the interest rate. The problem the player faces is in many ways quite realistic--just as a real monetary authority,…

Testing the Monetary Model for Exchange Rate Determination in South Africa: Evidence from 101 Years of Data

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Riané de Bruyn

2013-03-01

Full Text Available Evidence in favor of the monetary model of exchange rate determination for the South African Rand is, at best, mixed. A co-integrating relationship between the nominal exchange rate and monetary fundamentals forms the basis of the monetary model. With the econometric literature suggesting that the span of the data, not the frequency, determines the power of the co-integration tests and the studies on South Africa primarily using short-span data from the post-Bretton Woods era, we decided to test the long-run monetary model of exchange rate determination for the South African Rand relative to the US Dollar using annual data from 1910 – 2010. The results provide some support for the monetary model in that long-run co-integration is found between the nominal exchange rate and the output and money supply deviations. However, the theoretical restrictions required by the monetary model are rejected. A vector error-correction model identifies both the nominal exchange rate and the monetary fundamentals as the channel for the adjustment process of deviations from the long-run equilibrium exchange rate. A subsequent comparison of nominal exchange rate forecasts based on the monetary model with those of the random walk model suggests that the forecasting performance of the monetary model is superior.

Integrated Monetary and Exchange Rate Frameworks

NARCIS (Netherlands)

L. Vinhas de Souza

2002-01-01

textabstractHere the author empirically estimates if the different monetary and exchange rate frameworks observed in the Accession Countries of Central and Eastern Europe and the Baltics do yield different outcomes in terms of level and variance of a set of nominal and real variables. The author

Monetary Autonomy in Select Asian Economies : Role of International Reserves

OpenAIRE

Hiroyuki Taguchi; Geethanjali Nataraj; Pravakar Sahoo

2010-01-01

This paper examines the trends in monetary autonomy and its interaction with financial integration, currency regime and foreign reserves for the past two decades in select Asian countries viz., Thailand, Korea, Indonesia, Philippines, and India. Our main findings are as follows : First, Thailand, Korea and Indonesia, who experienced the change in currency regime towards a floating regime, have lowered the sensitivities of their interest rates (have raised monetary autonomy) after the regime c...

On the Convergence of Affective and Persuasive Technologies in Computer- Mediated Health-Care Systems

Directory of Open Access Journals (Sweden)

Rebeca I. García-Betances

2015-01-01

Full Text Available This paper offers a portrayal of how affective computing and persuasive technologies can converge into an effective tool for interfacing biomedical engineering with behavioral sciences and medicine. We describe the characteristics, features, applications, present state of the art, perspectives, and trends of both streams of research. In particular, these streams are analyzed in light of the potential contribution of their convergence for improving computer-mediated health-care systems, by facilitating the modification of patients’ attitudes and behaviors, such as engagement and compliance. We propose a framework for future research in this emerging area, highlighting how key constructs and intervening variables should be considered. Some specific implications and challenges posed by the convergence of these two technologies in health care, such as paradigm change, multimodality, patients’ attitude improvement, and cost reduction, are also briefly addressed and discussed.

International Monetary Policy Coordination in a New Keynesian Model with NICE Features

Science.gov (United States)

Poutineau, Jean-Christophe; Vermandel, Gauthier

2018-01-01

The authors provide a static two-country new Keynesian model to teach two related questions in international macroeconomics: the international transmission of unilateral monetary policy decisions and the gains coming from the coordination monetary rules. They concentrate on "normal times" and use a thoroughly graphical approach to…

The Analysis of the Real Convergence of the Countries from Central and Eastern Europe

Directory of Open Access Journals (Sweden)

Roxana Badircea

2016-11-01

Full Text Available This thesis treats extremely present aspects regarding the evolutions of the emerging economies within the new member states of the European Union insisting on the analysis of the convergence process from a real perspective. Beside the achievement of a monetary union, one of the fundamental objectives of the European Union is represented by the reducing of the disparities regarding the level of development among the member states. One of the ways of appreciating the reduction of the disparities between the economies involve a reduction of the gap as far as the GDP level/inhabitant is concerned or in other words, a real convergence. A series of statistic data are analysed in order to point out the extent to which the central ad East-European states have managed to reduce the gap in report to the developed member states of the EMU, using indicators for the appreciation of the real convergence: the GDP per inhabitant, the monthly average salary, the poverty rate, the contribution of the main sectors of the economy in the formation of the GDP and the unemployment rate. From the analysis of the statistic data one can observe that the highest degree of real convergence is held by Slovenia, which distanced a lot from the other EEC states, followed by the Czech Republic. Regarding from the point of view of the evolution of the EEC countries during the entire analysed period, based on the dynamics of the indicators and of the speed of catching up the gaps we can also notice the performance of the Baltic countries. Unfortunately, Romania and Bulgaria are way behind the other EEC countries.

Do monetary rewards undermine intrinsic motivations of volunteers? Some empirical evidence for Italian volunteers

OpenAIRE

Fiorillo, Damiano

2007-01-01

Empirical studies show that intrinsic motivations increase the volunteer labour supply. This paper studies how monetary rewards to volunteers affect their intrinsic motivations. Using a sample of Italian volunteers, allowing to distinguish the type of volunteer, the paper shows that monetary rewards (extrinsic motivations) influence positively the choice to donate voluntary hours, while a low intrinsic motivation seems to decrease hours per week. Moreover, monetary rewards increase the hours ...

THE CRUCIAL ROLE OF CENTRAL BANK TRANSPARENCY IN ASSESSING THE MONETARY POLICY COMMITTEE MECHANISM

Directory of Open Access Journals (Sweden)

Dumiter Florin Cornel

2012-12-01

Full Text Available In the past, central banks used to be very reserved regarding their activities, strategies and monetary policy decisions and actions. As central banks become more and more independent, transparency gained importance based upon accountability arguments. An important fact for adopting an increasing central bank transparency lies in its importance of influencing the development of expectations. The concept of central bank transparency has emerged in the economic literature relatively later than some other key concepts. The widespread agreement of an inflation targeting regime and a more transparent central bank is desired by the most central banks around the world in the context of the need of the public disclosure of macroeconomic models, the quarterly time series for indicators like: inflation, output, budgetary deficit, public debt, interest rate, inflation expectations, the public announcement of the monetary policy decisions, objectives and targets, the publication of some key monetary tools like: inflation report, financial stability report, monetary policy committee report, annual report. These are all key issues in the construction of a more transparent and independent central bank in the context of a good global governance. Moreover, for the fruitful success of the central bank, latum sensu, and monetary policy, stricto sensu, it must be encompassed a complex monetary policy committee mechanism. This complex mechanism must by edowed with the collegial approach of the monetary policy committee, structure of the voting mechanism within the committee, the importance of the person which announces the changes within the interest rates and the public disclosure of these information’s enriched in a communication strategy. This communication strategy is very important for assessing and public understanding of the central bank’s actions but also for communicating the objectives, targets and forward looking approaches of the monetary

Long Term Validity of Monetary Exchange Rate Model: Evidence from Turkey

Directory of Open Access Journals (Sweden)

Ugur Ahmet

2014-03-01

Full Text Available In this study, it was analyzed if there is a long term relationship among the nominal exchange rate and monetary fundamentals within the periods of 1998:1-2011:2 in Turkey. This relationship has been analysed by using structural VAR (SVAR model. Besides, Granger causality test and Dolado-Lütkepohl Granger causality test were used to determine if there were a causality relationship among the nominal exchange rate and monetary fundamentals. As a result of the SVAR model, the relationship among the series related to nominal exchange rate and money supply, GDP, interest rate in Turkey in long term were not determined and at the end of causality tests, causality relationship among the nominal exchange rate and monetary fundamentals were not determined.

EXPANSIONARY MONETARY POLICY AND THE OPPORTUNITIES FOR RESURGENCE OF INVESTMENT GROWTH IN UKRAINE

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A. Ignatyuk

2014-12-01

Full Text Available This article is analyzed the basic tools of the expansionary monetary policy and its impact on investment growth. It is proposed transformation of monetary policy to activate the innovation processes, in particular by introducing macro-prudential limitations of investment alternatives for the population and strengthening the role of banks with state capital. In article is suggested the methods of National bank, together with the Government to stimulate investment by the use of the allocation of funds through the instruments of monetary expansion.

Anti-crisis monetary policy on the example of selected central banks in 2007-2011

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Łukasz Kluczyński

2015-04-01

Full Text Available The purpose of this article was to present the actions of the monetary authorities in the light of the recent financial crisis. Destabilization of global markets and the economic recession that began with the collapse of Lehman Brothers meant that the standard monetary policy emerged ineffective in combating the crisis. The article shows how two major central banks of the world that is, the FED and the ECB, through modifying the existing instruments of monetary policy and the introduction of completely new tools tried to restore liquidity in the financial markets, after the standard monetary policy instruments have been insufficient and ineffective. In contrast, activities of the NBP also shown, which were primarily preventive aspect.

International Monetary Instability Between the Wars: Structural Flaws or Misguided Policies?

OpenAIRE

Barry Eichengreen

1989-01-01

This paper reassesses the history of the international monetary system between the wars. It confirms the generality of several widely held interpretations of recent experience with floating exchange rates. There is a positive association between nominal exchange rate variability and real exchange rate variability. But policies of intervention which reduce nominal exchange rate variability do not guarantee a proportionate reduction in nominal exchange rate risk or in real exchange rate variabi...

International Monetary Stability Between the Wars: Structural Flaws or Misguided Policies?

OpenAIRE

Eichengreen, Barry

1989-01-01

This paper examines the international monetary system between the Wars. It confirms the generality of several widely held interpretations of recent experience with floating exchange rates. There is a positive association between nominal exchange rate flexibility and nominal exchange rate variability, and between nominal and real exchange rate variability. But policies which reduce nominal exchange rate variability do not guarantee a proportionate reduction in nominal exchange rate risk or in ...

Three propositions on why characteristics of performance management systems converge across policy areas with different levels of task complexity

DEFF Research Database (Denmark)

Bjørnholt, Bente; Lindholst, Andrej Christian; Agger Nielsen, Jeppe

2014-01-01

of task complexity amidst a lack of formal and overarching, government-wide policies. We advance our propositions from a case study comparing the characteristics of performance management systems across social services (eldercare) and technical services (park services) in Denmark. Contrary to expectations......This article investigates the differences and similarities between performance management systems across public services. We offer three propositions as to why the characteristics of performance management systems may still converge across policy areas in the public sector with different levels...... for divergence due to differences in task complexity, the characteristics of performance management systems in the two policy areas are observed to converge. On the basis of a case study, we propose that convergence has occurred due to 1) similarities in policy-specific reforms, 2) institutional pressures, and 3...

Nominal and real price convergence in Romania – Statistical evaluation -

Directory of Open Access Journals (Sweden)

Mihai Gheorghe

2015-09-01

Full Text Available The creation of both the Economic and Monetary Union and of the single common market have meant two very important steps in getting a more and more compact Union. The first step regarding EMU lead to the adoption of a single currency and to the elimination of the exchange rates fluctuations, while the second one lead to the elimination of physical, administrative and technical barriers in order to achieve a sustainable economic growth and a stimulation of competition. Romanian authorities set out a new target year for the Euro adoption. Technically, the euro adoption as of 1 January 2019 would imply participation in the ERM II starting 1 January 2016 for the minimum 2-year stay. During this period the EU authorities will assess whether Romania meet the determined criteria for entering the third stage of EMU. The purpose of the paper is to assess the nominal and real convergence of Romanian prices, before and after the admission to the European Union (EU. The paper provides a short presentation of technical consideration of the both indices used to measure the price convergence, namely Harmonized Indices of Consumer Prices (HICP and the price level estimated in the PEC framework. A retrospective analysis since the EU admission show that in Romania, the inflation measured by the harmonized index of consumer prices has been on a downward trend, but is still relatively high, at an average rate of 3,2% in 2013. In Romania the price level is significantly lower as compared to the EU 15 average (46%, most probably this is due to the low per capita income level. In addition, the poor marketing and the low reputation of the domestic goods and services can also be regarded as factors reducing the convergence of prices in Romania and the EU.

The 'Thin film of gold': monetary rules and policy credibility

OpenAIRE

Niall Ferguson; Moritz Schularick

2012-01-01

This paper asks whether developing countries can reap credibility gains from submitting policy to a strict monetary rule. Following earlier work, we look at the gold standard era (1880-1914) as a "natural experiment" to test whether adoption of a rule-based monetary framework such as the gold standard increased policy credibility. On the basis of the largest possible dataset covering almost sixty independent and colonial borrowers in the London market, we challenge the traditional view that g...

Effects of alexithymia and empathy on the neural processing of social and monetary rewards.

Science.gov (United States)

Goerlich, Katharina Sophia; Votinov, Mikhail; Lammertz, Sarah E; Winkler, Lina; Spreckelmeyer, Katja N; Habel, Ute; Gründer, Gerhard; Gossen, Anna

2017-07-01

Empathy has been found to affect the neural processing of social and monetary rewards. Alexithymia, a subclinical condition showing a close inverse relationship with empathy is linked to dysfunctions of socio-emotional processing in the brain. Whether alexithymia alters the neural processing of rewards, which is currently unknown. Here, we investigated the influence of both alexithymia and empathy on reward processing using a social incentive delay (SID) task and a monetary incentive delay (MID) task in 45 healthy men undergoing functional magnetic resonance imaging. Controlling for temperament-character dimensions and rejection sensitivity, the relationship of alexithymia and empathy with neural activity in several a priori regions of interest (ROIs) was examined by means of partial correlations, while participants anticipated and received social and monetary rewards. Results were considered significant if they survived Holm-Bonferroni correction for multiple comparisons. Alexithymia modulated neural activity in several ROIs of the emotion and reward network, both during the anticipation of social and monetary rewards and in response to the receipt of monetary rewards. In contrast, empathy did not affect reward anticipation and modulated ROI activity only in response to the receipt of social rewards. These results indicate a significant influence of alexithymia on the processing of social and monetary rewards in the healthy brain.

Le politiche monetarie in Italia dalla Golden age alle “oil crisis” nelle Relazioni della Banca d’Italia (Monetary Policy in Italy According to the 'Relazioni' of the Bank of Italy

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Donatella Strangio

2017-03-01

Full Text Available Monetary policy, in recent years, is often invoked as a panacea for a severe recession that is affecting Europe, in particular Italy from 2010. This paper will examine how monetary policy reacted in times of crisis before the currency reform implemented with EMS, the main step towards the single currency. In this paper we were used the sources of the Relations of the Bank of Italy to highlight the role played by this institution in the monetary policy and the use of this policy.

Multiplier convergent series and uniform convergence of mapping ...

Indian Academy of Sciences (India)

MS received 14 April 2011; revised 17 November 2012. Abstract. In this paper, we introduce the frame property of complex sequence sets and study the uniform convergence of nonlinear mapping series in β-dual of spaces consisting of multiplier convergent series. Keywords. Multiplier convergent series; mapping series. 1.

Integration of Monetary and Fiscal Policy of the Countries of the Visegrad Group

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Kappel Stanislav

2014-09-01

Full Text Available 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.

26 CFR 1.1001-5 - European Monetary Union (conversion to the euro).

Science.gov (United States)

2010-04-01

... 26 Internal Revenue 11 2010-04-01 2010-04-01 true European Monetary Union (conversion to the euro). 1.1001-5 Section 1.1001-5 Internal Revenue INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY... § 1.1001-5 European Monetary Union (conversion to the euro). (a) Conversion of currencies. For...

Major depressive disorder is characterized by greater reward network activation to monetary than pleasant image rewards.

Science.gov (United States)

Smoski, Moria J; Rittenberg, Alison; Dichter, Gabriel S

2011-12-30

Anhedonia, the loss of interest or pleasure in normally rewarding activities, is a hallmark feature of unipolar Major Depressive Disorder (MDD). A growing body of literature has identified frontostriatal dysfunction during reward anticipation and outcomes in MDD. However, no study to date has directly compared responses to different types of rewards such as pleasant images and monetary rewards in MDD. To investigate the neural responses to monetary and pleasant image rewards in MDD, a modified Monetary Incentive Delay task was used during functional magnetic resonance imaging to assess neural responses during anticipation and receipt of monetary and pleasant image rewards. Participants included nine adults with MDD and 13 affectively healthy controls. The MDD group showed lower activation than controls when anticipating monetary rewards in right orbitofrontal cortex and subcallosal cortex, and when anticipating pleasant image rewards in paracingulate and supplementary motor cortex. The MDD group had relatively greater activation in right putamen when anticipating monetary versus pleasant image rewards, relative to the control group. Results suggest reduced reward network activation in MDD when anticipating rewards, as well as relatively greater hypoactivation to pleasant image than monetary rewards. 2011 Elsevier Ireland Ltd. All rights reserved.

Convergence of hyperspherical adiabatic expansion for helium-like systems

International Nuclear Information System (INIS)

Abrashkevich, A.G.; Abrashkevich, D.G.; Pojda, V.Yu.; Vinitskij, S.I.; Kaschiev, M.S.; Puzynin, I.V.

1988-01-01

The convergence of hyperspherical adiabatic expansion has been studied numerically. The spectral problems arising after separation of variables are solved by the finite-difference and finite element methods. The energies of the ground and some doubly excited staes of a hydrogen ion are calculated in the six-channel approximation within the 10 -4 a.u. accuracy. Obtained results demonstrate a rapid convergence of the hyperspherical adiabatic expansion. 14 refs.; 5 tabs

Monetary incentives: usually neither necessary nor sufficient?

Czech Academy of Sciences Publication Activity Database

Ortmann, Andreas; Hertwig, R.

-, č. 307 (2006), s. 1-17 ISSN 1211-3298 Institutional research plan: CEZ:AV0Z70850503 Keywords : experimental practices * monetary incentives * rhetorical tactics Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp307.pdf

Do monetary rewards crowd out intrinsic motivations of volunteers? Some empirical evidence for Italian volunteers

OpenAIRE

Damiano Fiorillo

2009-01-01

The paper studies the determinants of regular volunteering departing from previous literature on extrinsic and intrinsic motivations. It contributes to the literature investigating the role of monetary rewards to influence intrinsic motivation. Using a simple framework that allows me to study the effect of monetary rewards on intrinsic motivation, the paper shows, controlling for endogenous bias, that monetary rewards crowd-out intrinsic motivation.

Defining a convergence network platform framework for smart grid and intelligent transport systems

International Nuclear Information System (INIS)

Coronado Mondragon, Adrian E.; Coronado, Etienne S.; Coronado Mondragon, Christian E.

2015-01-01

The challenges faced by electricity grids suggest smart grids will have to coordinate its operation with other important initiatives in areas such as transportation. The smart grid relies on the use of network platforms where meter readings and data can be transmitted. On the other hand, concerning transportation systems the need to achieve a reduction of road congestion and traffic accidents among the increasing use of electric vehicles has consolidated the importance of ITS (intelligent transport systems). Given the magnitude of the challenges faced by both the smart grid and ITS, the aim of this work is to identify the elements comprising a convergence platform capable of supporting future services for data traffic associated to smart grid operations as well as ITS-related commercial service applications and road traffic safety messaging. A seaport terminal scenario is used to present a convergence network platform incorporating WSN (wireless sensor network) theory. The results of the simulation of the proposed network confirms the suitability of WSN to be used in the transmission of data traffic associated to meter readings which is required for effective energy consumption and management policies in industrial environments comprising equipment with high energy demands. - Highlights: • Common needs/challenges of smart grid/ITS can be addressed by a convergence network platform. • VANETs are identified as key components of the smart grid/ITS convergence network platform. • WSN (Wireless Sensor Network) theory is suitable for the transmission of data traffic associated to meter readings. • The amount of energy supplied to the network is low but enough to support data traffic required in industrial environments. • WSN supports the steady exchange of packets as characterized in industrial environments like seaports

Input-output interactions and optimal monetary policy

DEFF Research Database (Denmark)

Petrella, Ivan; Santoro, Emiliano

2011-01-01

This paper deals with the implications of factor demand linkages for monetary policy design in a two-sector dynamic general equilibrium model. Part of the output of each sector serves as a production input in both sectors, in accordance with a realistic input–output structure. Strategic...... complementarities induced by factor demand linkages significantly alter the transmission of shocks and amplify the loss of social welfare under optimal monetary policy, compared to what is observed in standard two-sector models. The distinction between value added and gross output that naturally arises...... in this context is of key importance to explore the welfare properties of the model economy. A flexible inflation targeting regime is close to optimal only if the central bank balances inflation and value added variability. Otherwise, targeting gross output variability entails a substantial increase in the loss...

Robust Monotonically Convergent Iterative Learning Control for Discrete-Time Systems via Generalized KYP Lemma

Directory of Open Access Journals (Sweden)

Jian Ding

2014-01-01

Full Text Available This paper addresses the problem of P-type iterative learning control for a class of multiple-input multiple-output linear discrete-time systems, whose aim is to develop robust monotonically convergent control law design over a finite frequency range. It is shown that the 2 D iterative learning control processes can be taken as 1 D state space model regardless of relative degree. With the generalized Kalman-Yakubovich-Popov lemma applied, it is feasible to describe the monotonically convergent conditions with the help of linear matrix inequality technique and to develop formulas for the control gain matrices design. An extension to robust control law design against systems with structured and polytopic-type uncertainties is also considered. Two numerical examples are provided to validate the feasibility and effectiveness of the proposed method.

A LOOK AT ON ASSESSMENT OF MONETARY INCLUSION IN INDIA

OpenAIRE

Sri CH. Venkateswarlu*

2017-01-01

Monetary inclusion refers back to the shipping of financial offerings in a handy manner and at a low priced fee to substantial sections of deprived and occasional income organization population. Monetary inclusion is the road that India wishes to tour in the direction of turning into a worldwide player. The paper attempts to observe the evaluate of financial inclusion in India. An evaluation has been made among India and some other selected nations concerning no of branches, ATMs, bank credit...

MONETARY POLICY RULE FOR POLAND – RESULTS FOR VARIOUS SPECIFACTIONS

OpenAIRE

Pawel Baranowski

2011-01-01

The aim of the paper is to analyse monetary policy rules for Poland. We estimate models based on the proposition of Taylor, augmented with interest rate smoothing. We deal with the case of instantaneous as well as forward-looking relationship between interest rate and inflation. In the latter case, the proposition of data-rich reaction function was also considered. The evidence show that Polish monetary authority reaction to inflation is strong, contrary to the output gap. In addition, we fou...

Monetary Policy Signaling from the Administration to the Federal Reserve.

OpenAIRE

Havrilesky, Thomas

1988-01-01

This paper develops an index of monetary policy signals from the Administration to the Federal Reserve based on articles which appeared in the Wall Street Journal in which Administration off icials express a desire for easier or tighter monetary policy. In reg ressions, the index has a significant effect on the money supply. In reaction functions, the index responds to variables which measure the state of the economy. Money growth does not respond to the same stat e-of-the-economy measures bu...

Converging flow joint insert system at an intersection between adjacent transitions extending between a combustor and a turbine assembly in a gas turbine engine

Science.gov (United States)

Wiebe, David J.; Carlson, Andrew; Stoker, Kyle C.

2017-10-31

A transition duct system for routing a gas flow in a combustion turbine engine is provided. The transition duct system includes one or more converging flow joint inserts forming a trailing edge at an intersection between adjacent transition ducts. The converging flow joint insert may be contained within a converging flow joint insert receiver and may be disconnected from the transition duct bodies by which the converging flow joint insert is positioned. Being disconnected eliminates stress formation within the converging flow joint insert, thereby enhancing the life of the insert. The converging flow joint insert may be removable such that the insert can be replaced once worn beyond design limits.

A convergence analysis for a sweeping preconditioner for block tridiagonal systems of linear equations

KAUST Repository

Bagci, Hakan; Pasciak, Joseph E.; Sirenko, Kostyantyn

2014-01-01

We study sweeping preconditioners for symmetric and positive definite block tridiagonal systems of linear equations. The algorithm provides an approximate inverse that can be used directly or in a preconditioned iterative scheme. These algorithms are based on replacing the Schur complements appearing in a block Gaussian elimination direct solve by hierarchical matrix approximations with reduced off-diagonal ranks. This involves developing low rank hierarchical approximations to inverses. We first provide a convergence analysis for the algorithm for reduced rank hierarchical inverse approximation. These results are then used to prove convergence and preconditioning estimates for the resulting sweeping preconditioner.

A convergence analysis for a sweeping preconditioner for block tridiagonal systems of linear equations

KAUST Repository

Bagci, Hakan

2014-11-11

We study sweeping preconditioners for symmetric and positive definite block tridiagonal systems of linear equations. The algorithm provides an approximate inverse that can be used directly or in a preconditioned iterative scheme. These algorithms are based on replacing the Schur complements appearing in a block Gaussian elimination direct solve by hierarchical matrix approximations with reduced off-diagonal ranks. This involves developing low rank hierarchical approximations to inverses. We first provide a convergence analysis for the algorithm for reduced rank hierarchical inverse approximation. These results are then used to prove convergence and preconditioning estimates for the resulting sweeping preconditioner.

Exploring the effect of monetary incentives on user behavior in Online Sharing Platforms

NARCIS (Netherlands)

Lu, Yixin; Ou, Carol; Angelopoulos, Spyros

2018-01-01

We examine the impact of monetary incentives on user onboarding in online sharing platforms. Specifically, drawing upon the literature of monetary incentives, privacy, and consumer behavior, we conduct a randomized field experiment to explore users’ initial engagement and interaction with an online

Examining the reaction of monetary policy to exchange rate changes: A nonlinear ARDL approach

Science.gov (United States)

Manogaran, Lavaneesvari; Sek, Siok Kun

2017-04-01

Previous studies showed the exchange rate changes can have significant impacts on macroeconomic performance. Over fluctuation of exchange rate may lead to economic instability. Hence, monetary policy rule tends to react to exchange rate changes. Especially, in emerging economies where the policy-maker tends to limit the exchange rate movement through interventions. In this study, we seek to investigate how the monetary policy rule reacts to exchange rate changes. The nonlinear autoregressive distributed lag (NARDL) model is applied to capture the asymmetric effect of exchange rate changes on monetary policy reaction function (interest rate). We focus the study in ASEAN5 countries (Indonesia, Malaysia, Philippines, Thailand and Singapore). The results indicated the existence of asymmetric effect of exchange rates changes on the monetary reaction function for all ASEAN5 countries in the long-run. Where, in majority of the cases the monetary policy is reacting to the appreciation and depreciation of exchange rate by raising the policy rate. This affirms the intervention of policymakers with the `fear of floating' behavior.

Foreign Shocks, Monetary Policy, and Macroeconomic Fluctuations in a Small Open Economy: A SVAR Study of Malaysia

Directory of Open Access Journals (Sweden)

Zulkefly Abdul Karim

2016-06-01

Full Text Available This paper investigates the effect of foreign shocks upon domestic macroeconomic fluctuations and monetary policy, and examines the effectiveness of domestic monetary policy as a stabilization policy in Malaysia. Monetary policy variables (interest rate and money supply have been measured through a non-recursive structural VAR (SVAR identification scheme, which allows the monetary authority to set the interest rate and money supply after observing the current value of foreign variables, domestic output and inflation. The results show the important role of foreign shocks in influencing Malaysian monetary policy and macroeconomic variables. There is a real effect of monetary policy, that is, a positive shock in money supply increases domestic output. In contrast, a positive interest rates shock has a negative effect on domestic output growth and inflation. The effects of money supply and interest rate shocks on the exchange rate and stock prices are also consistent with standard economic theory. In addition, domestic monetary policy is able to mitigate the negative effect of external shocks upon domestic economy.

Monetary Policy of the CIVETS Countries in Years 2006-2013

Directory of Open Access Journals (Sweden)

Krystyna Mitręga-Niestrój

2015-07-01

Full Text Available CIVETS countries refer to a group of countries consisting of Columbia, Indonesia, Vietnam, Egypt, Turkey and the Republic of South Africa, considered leaders of emerging markets. They are countries with dynamically developing economies, moderate debt level, and they have successfully managed to overcome the last financial and economic crisis within a short period of time. Similarly, as in case of the majority of countries, their monetary policy constitutes a significant element of macroeconomic policy, having influence not only on the condition of the banking sector, but the economy as a whole. Central banks of the CIVETS countries focused on inflation target as the goal of monetary policy. They used first of all the interest rate channel as well as instruments regulating liquidity of interbank money market of a standard character (open market operations, refinanced credits and reserve requirement, as well as non-standard monetary policy instruments in order to execute the policy of supporting liquidity of the banking sector in years 2006-2013.

International Accounting Convergences Related to EU Admitance

Directory of Open Access Journals (Sweden)

Niculae Feleaga

2006-05-01

Full Text Available Starting from January 1, 2005, member countries of the European Union began the obligatory or optional application of the international standards IAS/IFRS for consolidated accounts, what means a revolution in financial reporting of the enterprises. In regards to the individual accounts (generally based on the national book-keeping standards these will converge gradually to referential international book-keeper on short and medium term. At the world level the process which dominates the accounting systems is the convergence between american and international reference system, followed immediatly more or less by the convergence between national accounting systems and the international one. Where Romania and its specialists are situated confronting this process? A reflection subject which finalises this article.

Endogenous Monetary Policy Regime Change

OpenAIRE

Troy Davig; Eric M. Leeper

2006-01-01

This paper makes changes in monetary policy rules (or regimes) endogenous. Changes are triggered when certain endogenous variables cross specified thresholds. Rational expectations equilibria are examined in three models of threshold switching to illustrate that (i) expectations formation effects generated by the possibility of regime change can be quantitatively important; (ii) symmetric shocks can have asymmetric effects; (iii) endogenous switching is a natural way to formally model preempt...

The rewarding value of good motor performance in the context of monetary incentives.

Science.gov (United States)

Lutz, Kai; Pedroni, Andreas; Nadig, Karin; Luechinger, Roger; Jäncke, Lutz

2012-07-01

Whether an agent receives positive task feedback or a monetary reward, neural activity in their striatum increases. In the latter case striatal activity reflects extrinsic reward processing, while in the former, striatal activity reflects the intrinsically rewarding effects of performing well. There can be a "hidden cost of reward", which is a detrimental effect of extrinsic on intrinsic reward value. This raises the question how these two types of reward interact. To address this, we applied a monetary incentive delay task: in all trials participants received feedback depending on their performance. In half of the trials they could additionally receive monetary reward if they performed well. This resulted in high performance trials, which were monetarily rewarded and high performance trials that were not. This made it possible to dissociate the neural correlates of performance feedback from the neural correlates of monetary reward that comes with high performance. Performance feedback alone elicits activation increases in the ventral striatum. This activation increases due to additional monetary reward. Neural response in the dorsal striatum on the other hand is only significantly increased by feedback when a monetary incentive is present. The quality of performance does not significantly influence dorsal striatum activity. In conclusion, our results indicate that the dorsal striatum is primarily sensitive to optional or actually received external rewards, whereas the ventral striatum may be coding intrinsic reward due to positive performance feedback. Thus the ventral striatum is suggested to be involved in the processing of intrinsically motivated behavior. Copyright © 2012 Elsevier Ltd. All rights reserved.

How to measure monetary losses in gambling disorder? An evidence-based refinement.

Science.gov (United States)

Medeiros, Gustavo C; Redden, Sarah A; Chamberlain, Samuel R; Grant, Jon E

2018-05-01

Diverse monetary measures have been utilized across different studies in gambling disorder (GD). However, there are limited evidence-based proposals regarding the best way to assess financial losses. We investigated how different variables of monetary losses correlate with validated assessments of gambling severity and overall functioning in a large sample of subjects with GD (n = 436). We found that relative monetary variables (i.e. when financial losses were evaluated in relation to personal income) showed the most robust correlations with gambling severity and overall psychosocial functioning. Percentage of monthly income lost from gambling was the variable with the best performance. Copyright © 2018 The Authors. Published by Elsevier B.V. All rights reserved.

Reward-driven modulation of adaptive control: How prospective monetary gains interact with unpredictable control demands

NARCIS (Netherlands)

Marien, Hans; Aarts, Henk; Custers, Ruud

2014-01-01

Shifting attention is an effortful control process and incurs a cost on the cognitive system. Previous research suggests that rewards, such as monetary gains, will selectively enhance the ability to shift attention when this demand for control is explicitly cued. Here, we hypothesized that

Convergence of the Distorted Wave Born series

International Nuclear Information System (INIS)

MacMillan, D.S.

1981-01-01

The aim of this thesis is to begin to understand the idea of reaction mechanisms in nonrelativistic scattering systems. If we have a complete reaction theory of a particular scattering system, then we claim that the theory itself must contain information about important reaction mechanisms in the system. This information can be used to decide what reaction mechanisms should be included in an approximate calculation. To investigate this claim, we studied several solvable models. The primary concept employed in studying our models is the convergence of the multistep series generated by iterating the corresponding scattering integral equation. We known that the eigenvalues of the kernel of the Lippmann-Schwinger equation for potential scattering determine the rate of convergence of the Born series. The Born series will converge only if these eigenvalues all life within the unit circle. We extend these results to a study of the distorted wave Born series for inelastic scattering. The convergence criterion tells us when approximations are valid. We learn how the convergence of the distorted wave series depends upon energy, coupling constants, angular momentum, and angular momentum transfer. In one of our models, we look at several possible distorting potentials to see which one gives the best convergence. We have also applied our results to several actual DWBA or coupled channel calculations in the literature. In addition to the study of models of two-body scattering systems, we have considered the case of rearrangement scattering. We have discussed the formulation of (N greater than or equal to 3)-body distorted wave equations in which the interior dynamics have been redistributed by introducing compact N-body distortion potentials

Endogenous Oxytocin Release Eliminates In-Group Bias in Monetary Transfers With Perspective-Taking

Directory of Open Access Journals (Sweden)

Elizabeth T. Terris

2018-03-01

Full Text Available Oxytocin (OT has been shown to facilitate trust, empathy and other prosocial behaviors. At the same time, there is evidence that exogenous OT infusion may not result in prosocial behaviors in all contexts, increasing in-group biases in a number of studies. The current investigation seeks to resolve this inconsistency by examining if endogenous OT release is associated with in-group bias. We studied a large group of participants (N = 399 in existing groups and randomly formed groups. Participants provided two blood samples to measure the change in OT after a group salience task and then made computer-mediated monetary transfer decisions to in-group and out-group members. Our results show that participants with an increase in endogenous OT showed no bias in monetary offers in the ultimatum game (UG to out-group members compared to in-groups. There was also no bias in accepting UG offers, though in-group bias persisted for a unilateral monetary transfer. Our analysis shows that the strength of identification with one’s group diminished the effects that an increase in OT had on reducing bias, but bias only recurred when group identification reached 87% of its maximum value. Our results indicate that the endogenous OT system appears to reduce in-group bias in some contexts, particularly those that require perspective-taking.

Endogenous Oxytocin Release Eliminates In-Group Bias in Monetary Transfers With Perspective-Taking.

Science.gov (United States)

Terris, Elizabeth T; Beavin, Laura E; Barraza, Jorge A; Schloss, Jeff; Zak, Paul J

2018-01-01

Oxytocin (OT) has been shown to facilitate trust, empathy and other prosocial behaviors. At the same time, there is evidence that exogenous OT infusion may not result in prosocial behaviors in all contexts, increasing in-group biases in a number of studies. The current investigation seeks to resolve this inconsistency by examining if endogenous OT release is associated with in-group bias. We studied a large group of participants ( N = 399) in existing groups and randomly formed groups. Participants provided two blood samples to measure the change in OT after a group salience task and then made computer-mediated monetary transfer decisions to in-group and out-group members. Our results show that participants with an increase in endogenous OT showed no bias in monetary offers in the ultimatum game (UG) to out-group members compared to in-groups. There was also no bias in accepting UG offers, though in-group bias persisted for a unilateral monetary transfer. Our analysis shows that the strength of identification with one's group diminished the effects that an increase in OT had on reducing bias, but bias only recurred when group identification reached 87% of its maximum value. Our results indicate that the endogenous OT system appears to reduce in-group bias in some contexts, particularly those that require perspective-taking.

Monetary policy cooperation may not be counterproductive

DEFF Research Database (Denmark)

Jensen, Henrik

1997-01-01

This paper qualifies Rogoff's famous (1985) result that international monetary policy cooperation is counterproductive. In a model similar to his, it is shown that if wage-setters are non-atomistic and inflation averse - as policymakers are - cooperation leads to higher employment and possibly...

Financial market implications of monetary policy coincidences: Evidence from the UK and Euro Area government-bond markets

OpenAIRE

Arestis, Philip; Phelps, P

2017-01-01

Relatively little is known about the financial market impact of international monetary surprises arising on the same trading day. This paper estimates a suite of multi-security factor models, which captures international monetary surprise effects on UK and Euro Area government-bond markets over the period 1999–2014. In doing so, we shed light on the relative importance of coinciding, non-coinciding monetary surprises and non-monetary surprises across the yield curve. We find some support for ...

Optimal Monetary Policy with Durable Consumption Goods and Factor Demand Linkages

DEFF Research Database (Denmark)

Petrella, Ivan; Santoro, Emiliano

of production in both sectors, according to an input-output matrix calibrated on the US economy. As shown in a number of recent contributions, this roundabout technology allows us to reconcile standard two-sector New Keynesian models with the empirical evidence showing co-movement between durable and non......-durable spending in response to a monetary policy shock. A main result of our monetary policy analysis is that strategic complementarities generated by factor demand linkages amplify social welfare loss. As the degree of interconnection between sectors increases, the cost of misperceiving the correct production......This paper deals with the implications of factor demand linkages for monetary policy design. We develop a dynamic general equilibrium model with two sectors that produce durable and non-durable goods, respectively. Part of the output produced in each sector is used as an intermediate input...

THE ROLE OF MONETARY POLICY IN STIMULATING ECONOMIC GROWTH

Directory of Open Access Journals (Sweden)

Polyakov Egor Nikolaevich

2013-05-01

Full Text Available The paper reviews the conduct of monetary policy in Russia throughout last 10 years. The core method of analysis is ADL modeling. The author explains money supply influence on key macroeconomic variables: investment, consumption, import, inflation, REER. Specifically our results show to what extent GDP growth is determined by money supply growth throughout last 10 years. The author explains efficiency fall of Central Bank expansionary actions throughout last 5 years. The author suggests the set of decisions geared towards increasing the monetary policy efficiency. Ruble devaluation is a key of them. In particular, now the Central Bank of Russia and the Government of the following may be recommended: - gradual devaluation of the ruble by operations in the currency market you with the sterilization of excess money supply; - reduction in the rate of growth of tariffs for electricity, gas, of rail transport to the level of inflation; - reduction in the rate of growth of budget expenditures to the level of inflation. According to the author, these measures will allow monetary policy to revive Russia as an effective tool to stimulate economic growth.

THE ROLE OF MONETARY POLICY IN STIMULATING ECONOMIC GROWTH

Directory of Open Access Journals (Sweden)

Егор Николаевич Поляков

2013-06-01

Full Text Available The paper reviews the conduct of monetary policy in Russia throughout last 10 years. The core method of analysis is ADL modeling. The author explains money supply influence on key macroeconomic variables: investment, consumption, import, inflation, REER. Specifically our results show to what extent GDP growth is determined by money supply growth throughout last 10 years. The author explains efficiency fall of Central Bank expansionary actions throughout last 5 years. The author suggests the set of decisions geared towards increasing the monetary policy efficiency. Ruble devaluation is a key of them.In particular, now the Central Bank of Russia and the Government of the following may be recommended:- gradual devaluation of the ruble by operations in the currency market you with the sterilization of excess money supply;- reduction in the rate of growth of tariffs for electricity, gas, of rail transport to the level of inflation;- reduction in the rate of growth of budget expenditures to the level of inflation.According to the author, these measures will allow monetary policy to revive Russia as an effective tool to stimulate economic growth.DOI: http://dx.doi.org/10.12731/2218-7405-2013-5-9

MANAGEMENT OF SUSTAINABLE SOCIO-ECONOMIC DEVELOPMENT OF REGIONS WITHIN FISCAL AND MONETARY POLICY IN RUSSIA

Directory of Open Access Journals (Sweden)

T. Usmanova

2016-01-01

Full Text Available Strategy of social and economic development of regions has to be a basis for formation budgetary and tax and a monetary policy. Formation of strategic plans have to provide an exit to the new level of innovative economic and social development of Russia. Adaptation of the current legislation is necessary for the solution of the set major problems regarding budgetary and tax and a monetary policy in the Russian Federation. The important direction of development of social and economic development of territories is the clustering and formation of projects of the public-private partnership (PPP. Within integration of the countries into the world economy the organizations as systems in the form of clusters and the PPP projects can only be the competitive. Within formation of the organizations as systems it is necessary to provide formation of standards of a sustainable development (SEU for social protection of the population and increase of the human capital.

A Pilot Study on Comparative Assessment of Electricity Generating Systems Using Monetary Value

International Nuclear Information System (INIS)

Kim, Kil Yoo; Kim, Seong Ho; Kim, Tae Woon

2005-01-01

Recently, many variables which affect the cost of electricity generating systems are drastically changing. For examples, the price of crude oil soared above 70 dollars a barrel and it will be continuously going up. Kyoto Protocol, an international agreement signed by 141 countries that promise to reduce greenhouse gases, finally entered into force on February 16, 2005. A total of 39 countries are required to reduce their emissions of greenhouse gases, including carbon dioxide, methane and nitrous oxide, to 5.2 percent below the 1990 levels during 2008-2012. Also, many researches and government support are concentrated on the renewable energy. In Korea, the portion of renewable energy in the electricity generation will be increased up to 7% in 2010. Therefore, a comparative assessment among electricity generating systems by considering the environmental impacts, risks, health effects, and social effects is required to establish the national energy and power systems planning systematically and scientifically. Up to now, several papers for data collection and analysis of the environmental impacts, risks, and health effects for various electricity generation systems in Korea were published. However, they were not the comparative assessment covering all impacts and effects but just a partial assessment (e.g., environmental impacts assessment only), or not covering all generating systems such as nuclear, coal, LNG, hydro, oil, wind, photo-voltaic (=solar) but covering partial ones (e.g., nuclear, coal, LNG, and wind only). Although Ref. deals all electricity generating systems, and all impacts such as economic, environmental, health, and social impacts, it used too much subjective opinion by using pairwise comparison questionnaire to know the relative importance among the economic, environmental, health, and social effects. However, if economic, environmental, health, and social effects of the various electricity generation systems could be calculated by monetary value

Robust consensus algorithm for multi-agent systems with exogenous disturbances under convergence conditions

Science.gov (United States)

Jiang, Yulian; Liu, Jianchang; Tan, Shubin; Ming, Pingsong

2014-09-01

In this paper, a robust consensus algorithm is developed and sufficient conditions for convergence to consensus are proposed for a multi-agent system (MAS) with exogenous disturbances subject to partial information. By utilizing H∞ robust control, differential game theory and a design-based approach, the consensus problem of the MAS with exogenous bounded interference is resolved and the disturbances are restrained, simultaneously. Attention is focused on designing an H∞ robust controller (the robust consensus algorithm) based on minimisation of our proposed rational and individual cost functions according to goals of the MAS. Furthermore, sufficient conditions for convergence of the robust consensus algorithm are given. An example is employed to demonstrate that our results are effective and more capable to restrain exogenous disturbances than the existing literature.

Borrowing constraints, multiple equilibria and monetary policy

NARCIS (Netherlands)

Assenza, T.

2007-01-01

The appealing feature of Kiyotaki and Moore's Financial Accelerator model (Kiyotaki and Moore, 1997, 2002) is the linkage of asset price changes and borrowing constraints. This framework therefore is the natural vehicle to explore the net worth channel of the monetary transmission mechanism. In the

Monetary and Fiscal Policy Interactions in the Czech Republic

Directory of Open Access Journals (Sweden)

Pavel Rezabek

2018-06-01

Full Text Available The paper provides empirical analysis of interactions between monetary and fiscal policy in the Czech Republic and document changes in policy conduct across the time. To this end, we build and estimate a six-variable Bayesian VAR and propose some refinements to the modelling framework. These improvements make it possible to better capture the main features of the economic system populated by both macroeconomic policy authorities. The results point to the lack of complementarity between policy actions adopted by the authorities and suggest that there is still enough room for enhancing the effectiveness of economic policies.

Temporary oil production, current account deterioration and the role of monetary and fiscal policy

International Nuclear Information System (INIS)

Harvie, C.

1992-01-01

This paper extends earlier work on the macroeconomic adjustment processes arising for an economy experiencing a temporary period of oil production. Emphasis is placed on developments in the current account, as reflected in foreign asset stock movements, after oil production ceases, as well as on the role that monetary, fiscal or fiscal/monetary policy can play in influencing current-account developments during this same period. The results presented suggest that, to improve the performance of the current account, irrespective of the wage adjustment mechanism operative, after oil production ceases, the major thrust of macroeconomic policy should operate through fiscal rather than monetary policy. However developments in non-oil output would be influenced by the wage adjustment mechanism. With wage indexation, a tight fiscal policy after oil production ceases leads to a higher level of non-oil output than in the no policy response case, or one where monetary policy alone is used. With no wage indexation, the use of monetary and/or fiscal policy leads to lower levels of non-oil output. The use of fiscal policy also has the added benefit of contributing to a lower consumer price level, again irrespective of the operative wage adjustment mechanism. If the emphasis of policy operates through monetary policy, irrespective of the wage adjustment mechanism, the current-account problem will be exacerbated since foreign assets stocks will be lower. In addition, non-oil output and consumer prices will be lower. (Author)

The co-movement of monetary policy and its time-varying nature: A DCCA approach

Science.gov (United States)

Rohit, Abhishek; Mitra, Subrata Kumar

2018-02-01

Employing a novel methodology of DCCA cross-correlation coefficient (ρDCCA), this study attempts to provide fresh evidences for the co-movement of monetary policies of the advanced (AEs) as well as the emerging economies (EMEs) vis-à-vis the United States. A higher degree of monetary co-movement as measured by ρDCCA values, is identified for the AEs as compared to the EMEs. Lower co-movement of monetary policy is especially noticeable in the short run for EMEs. We further investigate the time-varying nature of such co-movements for the AEs by splitting the period (1980-2014) into four sub periods and also by performing a rolling window estimation for the entire period to reveal smoother dynamics. Significant evidence of higher monetary coordination is revealed for sub-periods with stronger trade and financial linkages.

Monetary and Non-monetary SWO Retention Bonuses: An Experimental Approach to the Combinatorial Retention Auction Mechanism (CRAM)

Science.gov (United States)

2009-12-01

aircraft carrier would not function properly nor could a guided missile destroyer fulfill its missions. Retention of qualified and motivated ...19 Jason Blake Ellis, “Variability of Valuation of Non-Monetary Incentives: Motivating and...this illustration offer individual values that exceed the Navy’s cost to provide the incentive for most individuals. On the other hand, telecommuting

Converged wireline and wireless signal transport over optical fibre access links

DEFF Research Database (Denmark)

Tafur Monroy, Idelfonso; Prince, Kamau; Osadchiy, Alexey Vladimirovich

2009-01-01

This article reviews emerging trends in converged optical-wireless communication systems and outline the role that photonic technologies are playing in making the vision of a wireline-wireless converged signal transport network a reality.......This article reviews emerging trends in converged optical-wireless communication systems and outline the role that photonic technologies are playing in making the vision of a wireline-wireless converged signal transport network a reality....

Monetary models and exchange rate determination: The Nigerian ...

African Journals Online (AJOL)

Monetary models and exchange rate determination: The Nigerian evidence. ... income levels and real interest rate differentials provide better forecasts of the ... partner can expect to suffer depreciation in the external value of her currency.

17 CFR Table III to Subpart E of... - Civil Monetary Penalty Inflation Adjustments

Science.gov (United States)

2010-04-01

... 17 Commodity and Securities Exchanges 2 2010-04-01 2010-04-01 false Civil Monetary Penalty Inflation Adjustments III Table III to Subpart E of Part 201 Commodity and Securities Exchanges SECURITIES..., Table III Table III to Subpart E of Part 201—Civil Monetary Penalty Inflation Adjustments U.S. Code...

Children's Use of Meta-Cognition in Solving Everyday Problems: Children's Monetary Decision-Making

Science.gov (United States)

Lee, Chwee Beng; Koh, Noi Keng; Cai, Xin Le; Quek, Choon Lang

2012-01-01

The purpose of this study was to understand how children use meta-cognition in their everyday problem-solving, particularly making monetary decisions. A particular focus was to identify components of meta-cognition, such as regulation of cognition and knowledge of cognition observed in children's monetary decision-making process, the roles of…

Money, income, and profit: lessons from the monetary theory of production

OpenAIRE

Carrera, Andrea; Rossi, Sergio

2015-01-01

In this paper we analyze Augusto Graziani’s numerous contributions to the monetary theory of production, which he developed from a theoretical but also a policy-oriented perspective. We focus on the rejection of the neoclassical dichotomy, the causal relation between production and money creation, and the definition of macroeconomic saving. These three dimensions of Graziani’s work can be identified in the framework of the monetary circuit, in the tradition of classical and Marxian economic t...

Perspectives on Monetary Policy and Cost of Capital: Evidence from Turkey

Directory of Open Access Journals (Sweden)

Turguttopbas Neslihan

2017-05-01

Full Text Available The target of monetary policy is generally set as to create an environment of manageable employment and affordable long-term interest rates. However, priorities of central banks may differ depending on economic and financial circumstances of individual countries. Modern approaches to monetary policy transmission can be grouped under two headings, Money View and Credit View. The money view concentrates on interest rates to explain the effects of monetary policy on aggregate spending by creating an interest rate channel. The credit channel transmission approach focuses on the supply of credits by banks following a monetary policy shift in interest rates. In 2010, the Central Bank of Turkey (CBT developed an interest rate corridor shaped by one-week and overnight repo lending to the financial banks to absorb excessive volatility caused by short-term capital inflows. Under this framework, the CBT implements its monetary policy in two ways; firstly it can alter the interest rates of weekly repo as well as O/N lending rate. Secondly, it can configure the funding structure it provides to the financial intermediaries. In such a framework, the interest rate transmission mechanism has been operated by two benchmark interest rates, one of which is the weighted average of the cost of funds provided by the CBT and the other is the interest rate in Borsa Istanbul (BIST money market transactions at an overnight maturity. There is a strong co-movement between the interest rates and they are affected by the movements in the CBT lending rate in both directions. Interest rates applied to deposits and loans by banks are affected by the policy rate (CBT Average Funding Rate and the market rate (BIST O/N Repo Rate.

Monetary Policy and Excessive Bank Risk Taking

NARCIS (Netherlands)

Agur, I.; Demertzis, M.

2010-01-01

If monetary policy is to aim at financial stability, how would it change? To analyze this question, this paper develops a general-form model with endogenous bank risk profiles. Policy rates affect both bank incentives to search for yield and the cost of wholesale funding. Financial stability

Signalling, wage controls and monetary disinflation policy

NARCIS (Netherlands)

van Wijnbergen, S.J.G.; Persson, T.

1993-01-01

Focuses on wage control and monetary disinflation policy. How the crucial variable to control is the money supply and wage and price controls should be avoided because of their macroeconomic costs; The two types of government as being low-inflation governments and high-inflation governments; How

MONEY AND MONETARY POLICY OF THE GOVERNMENT

Directory of Open Access Journals (Sweden)

Tsvetan Iliev

2017-12-01

Full Text Available In this paper we will clarify the issues related to: the emergence of money - their functions and varieties, the specificity of their demand and supply and the main aspects of the monetary policy of the state with its effects on the economic development.

An empirical analysis of Singapore’s monetary and exchange rate policies in the 1990s

Directory of Open Access Journals (Sweden)

R.C. MAYSAMI

1998-03-01

Full Text Available The economy of Singapore has remained relatively unscathed from the Asian currency crisis of 1997 and 1998 which has severely crippled the markets of Hong Kong, Indonesia, and Malaysia. The Monetary Authority of Singapore, which has overseen the country's financial development since the 1960s, has maintained sound monetary policy which has saved the economy from ruin. The government, unlike those of other countries, has also regulated real estate loans and land development and has strengthened its basic services of telecommunications and transport. The present work seeks to re-examine the conflict between monetary stability and exchange rate objectives. The authors seek to find out which policy goal the Monetary Authority of Singapore has been and should be more interested in.

Heterotic quantum and classical computing on convergence spaces

Science.gov (United States)

Patten, D. R.; Jakel, D. W.; Irwin, R. J.; Blair, H. A.

2015-05-01

Category-theoretic characterizations of heterotic models of computation, introduced by Stepney et al., combine computational models such as classical/quantum, digital/analog, synchronous/asynchronous, etc. to obtain increased computational power. A highly informative classical/quantum heterotic model of computation is represented by Abramsky's simple sequential imperative quantum programming language which extends the classical simple imperative programming language to encompass quantum computation. The mathematical (denotational) semantics of this classical language serves as a basic foundation upon which formal verification methods can be developed. We present a more comprehensive heterotic classical/quantum model of computation based on heterotic dynamical systems on convergence spaces. Convergence spaces subsume topological spaces but admit finer structure from which, in prior work, we obtained differential calculi in the cartesian closed category of convergence spaces allowing us to define heterotic dynamical systems, given by coupled systems of first order differential equations whose variables are functions from the reals to convergence spaces.

Functional Convergence in the Tense, Evidentiality and Aspectual Systems of Quechua Spanish Bilinguals

Science.gov (United States)

Sanchez, Liliana

2004-01-01

In this paper, I present an exploratory study on cross-linguistic interference among Quechua-Spanish bilingual children living in a language contact situation. The study focuses on convergence in the tense, aspectual and evidentiality systems of the two languages. While in Quechua past tense features are strongly linked to evidentiality in the…

Financial Plumbing and Monetary Policy

OpenAIRE

Manmohan Singh

2014-01-01

This paper focuses on how changes in financial plumbing of the markets may impact the monetary policy options as central banks contemplate lift off from zero lower bound (ZLB). Under the proposed regulations, banks will face leverage ratio constraints. As a result of quantitative easing (QE), banks want balance sheet “space” for financial intermediation/ non-depository activities. At the same time, regulatory changes are boosting demand for high quality liquid assets. The paper also discusses...

Asset Pricing and Monetary Policy

OpenAIRE

Bingbing Dong

2014-01-01

This paper examines the role of money in understanding the behavior of asset prices and whether and how monetary policy should react to asset prices such as stock prices and equity premiums. To do so, I introduce money via the form of transaction cost into a production economy with limited stock market participation where agents with lower inter-temporal elasticity of substitution (IES), called non-stockholders, have no access to stock market. In addition to facilitating transactions of consu...

Strong convergence and convergence rates of approximating solutions for algebraic Riccati equations in Hilbert spaces

Science.gov (United States)

Ito, Kazufumi

1987-01-01

The linear quadratic optimal control problem on infinite time interval for linear time-invariant systems defined on Hilbert spaces is considered. The optimal control is given by a feedback form in terms of solution pi to the associated algebraic Riccati equation (ARE). A Ritz type approximation is used to obtain a sequence pi sup N of finite dimensional approximations of the solution to ARE. A sufficient condition that shows pi sup N converges strongly to pi is obtained. Under this condition, a formula is derived which can be used to obtain a rate of convergence of pi sup N to pi. The results of the Galerkin approximation is demonstrated and applied for parabolic systems and the averaging approximation for hereditary differential systems.

Can money heal all wounds? Social exchange norm modulates the preference for monetary versus social compensation

Directory of Open Access Journals (Sweden)

Yulong eCao

2015-09-01

Full Text Available Compensation is a kind of pro-social behavior that can restore a social relationship jeopardized by interpersonal transgression. The effectiveness of a certain compensation strategy (e.g., repaying money, sharing loss, etc. may vary as a function of the social norm/relationship. Previous studies have shown that two types of norms (or relationships, monetary/exchange and social/communal, differentially characterize people’s appraisal of and response to social exchanges. In this study, we investigated how individual differences in preference for these norms affect individuals’ perception of others’ as well as the selection of their own reciprocal behaviors. In a two-phase experiment with interpersonal transgression, we asked the participant to perform a dot-estimation task with two partners who occasionally and unintentionally inflict noise stimulation upon the participant (first phase. As compensation one partner give money to the participant 80% of the time (the monetary partner and the other bear the noise for the participant 80% of the time (the social partner. Results showed that the individuals’ preference for compensation (repaying money versus bearing harm affected their relationship (exchange versus communal with the partners adopting different compensation strategies: participants tended to form communal relationships and felt closer to the partner whose compensation strategy matched their own preference. The participants could be differentiated into a social group, who tended to form communal relationship with the social partner, and a monetary group, who tended to form communal relationship with the monetary partner. In the second phase of the experiment, when the participants became transgressors and were asked to compensate for their transgression with money, the social group offered more compensation to the social partners than to the monetary partners, while the monetary group compensated less than the social group in

Can money heal all wounds? Social exchange norm modulates the preference for monetary versus social compensation.

Science.gov (United States)

Cao, Yulong; Yu, Hongbo; Wu, Yanhong; Zhou, Xiaolin

2015-01-01

Compensation is a kind of pro-social behavior that can restore a social relationship jeopardized by interpersonal transgression. The effectiveness of a certain compensation strategy (e.g., repaying money, sharing loss, etc.) may vary as a function of the social norm/relationship. Previous studies have shown that two types of norms (or relationships), monetary/exchange and social/communal, differentially characterize people's appraisal of and response to social exchanges. In this study, we investigated how individual differences in preference for these norms affect individuals' perception of others' as well as the selection of their own reciprocal behaviors. In a two-phase experiment with interpersonal transgression, we asked the participant to perform a dot-estimation task with two partners who occasionally and unintentionally inflicted noise stimulation upon the participant (first phase). As compensation one partner gave money to the participant 80% of the time (the monetary partner) and the other bore the noise for the participant 80% of the time (the social partner). Results showed that the individuals' preference for compensation (repaying money versus bearing noise) affected their relationship (exchange versus communal) with the partners adopting different compensation strategies: participants tended to form communal relationships and felt closer to the partner whose compensation strategy matched their own preference. The participants could be differentiated into a social group, who tended to form communal relationship with the social partner, and a monetary group, who tended to form communal relationship with the monetary partner. In the second phase of the experiment, when the participants became transgressors and were asked to compensate for their transgression with money, the social group offered more compensation to the social partners than to the monetary partners, while the monetary group compensated less than the social group in general and showed no

Abstinence duration modulates striatal functioning during monetary reward processing in cocaine patients.

Science.gov (United States)

Bustamante, Juan-Carlos; Barrós-Loscertales, Alfonso; Costumero, Víctor; Fuentes-Claramonte, Paola; Rosell-Negre, Patricia; Ventura-Campos, Noelia; Llopis, Juan-José; Ávila, César

2014-09-01

Pre-clinical and clinical studies in cocaine addiction highlight alterations in the striatal dopaminergic reward system that subserve maintenance of cocaine use. Using an instrumental conditioning paradigm with monetary reinforcement, we studied striatal functional alterations in long-term abstinent cocaine-dependent patients and striatal functioning as a function of abstinence and treatment duration. Eighteen patients and 20 controls underwent functional magnetic resonance imaging during a Monetary Incentive Delay task. Region of interest analyses based on masks of the dorsal and ventral striatum were conducted to test between-group differences and the functional effects in the cocaine group of time (in months) with no more than two lapses from the first time patients visited the clinical service to seek treatment at the scanning time (duration of treatment), and the functional effects of the number of months with no lapses or relapses at the scanning session time (length of abstinence). We applied a voxel-wise and a cluster-wise FWE-corrected level (pFWE) at a threshold of P reward anticipation than the control group. The regression analyses in the patients group revealed a positive correlation between duration of treatment and brain activity in the left caudate during reward anticipation. Likewise, length of abstinence negatively correlated with brain activity in the bilateral nucleus accumbens during monetary outcome processing. In conclusion, caudate and nucleus accumbens show a different brain response pattern to non-drug rewards during cocaine addiction, which can be modulated by treatment success. © 2013 The Authors, Addiction Biology © 2013 Society for the Study of Addiction.

Monetary Policy and Nigeria's Economic Development | Akujuobi ...

African Journals Online (AJOL)

This study investigated the impact of monetary policy instruments on theeconomic development of Nigeria, using multiple regression technique. Itwas found that cash reserve ratio was significant in impacting on theeconomic development of Nigeria at both 1% and 5% levels of significance,treasury bill at 5.6%, minimum ...

Analysis of monetary and fiscal policy mix

Directory of Open Access Journals (Sweden)

2010-12-01

Full Text Available Economies are constantly hit by various shocks-that effect aggregate demand and aggregate supply and have the potential to generate recession or expansion, respective a high level of unemployment and high inflation rate. Governments use fiscal and monetary policies to try to stabilioze the economy.

Convergence in Global Food Demand and Delivery

OpenAIRE

Regmi, Anita; Takeshima, Hiroyuki; Unnevehr, Laurian J.

2008-01-01

Using food expenditures and food sales data over 1990-2004, this report examines whether food consumption and delivery trends are converging across 47 high- and middle-income countries. Middle-income countries, such as China and Mexico, appear to be following trends in high-income countries, measured across several dimensions of food system growth and change. Convergence is apparent in most important food expenditure categories and in indicators of food system modernization such as supermarke...

Convergent dynamics for multistable delayed neural networks

International Nuclear Information System (INIS)

Shih, Chih-Wen; Tseng, Jui-Pin

2008-01-01

This investigation aims at developing a methodology to establish convergence of dynamics for delayed neural network systems with multiple stable equilibria. The present approach is general and can be applied to several network models. We take the Hopfield-type neural networks with both instantaneous and delayed feedbacks to illustrate the idea. We shall construct the complete dynamical scenario which comprises exactly 2 n stable equilibria and exactly (3 n − 2 n ) unstable equilibria for the n-neuron network. In addition, it is shown that every solution of the system converges to one of the equilibria as time tends to infinity. The approach is based on employing the geometrical structure of the network system. Positively invariant sets and componentwise dynamical properties are derived under the geometrical configuration. An iteration scheme is subsequently designed to confirm the convergence of dynamics for the system. Two examples with numerical simulations are arranged to illustrate the present theory

Money supply growth and inflation – the monetary policy strategy of the European Central Bank

Directory of Open Access Journals (Sweden)

Svatopluk Kapounek

2007-01-01

Full Text Available The main aim of this article is to find out whether there is a significant relationship between money supply growth and inflation in the Eurozone. For this reason, the monetary policy strategy of the European Central Bank (ECB has been evaluated. Since the establishment of the ECB in January 1999 to May 2003 the ECB‘s monetary policy strategy consisted of three main elements: a quantitative definition of price stability, a prominent role for money in the assessment of risks to price stability (aggregate M3 as a reference value, and a broadly based assessment of the outlook for price developments. Nevertheless, since May 2003 M3 or any other monetary aggregate has lost its prominent role in the ECB‘s strategy. Therefore the nowadays ECB‘s monetary policy strategy consists of a quantitative definition of the primary objective of price stability and an analytical framework based on two pillars – economic analysis and monetary analysis. These two pillars are used by the ECB‘s Governing Council in the overall assessment of risks to price stability and in monetary policy decisions.The empirical part of this article is based on time series correlation between money supply growth and inflation in selected member countries of the Economic and Monetary Union (EMU - Eurozone during the period 1995–2005. The time series are divided into two parts. The first part covers data for selected member countries of the European Union from 1995 till 1998, i.e. before the establishment of the EMU. Whereas the second part includes data for the whole Eurozone since its official start in 1999 to 2005. The time series are adjusted by SARIMA models.

Is the quantity of government debt a constraint for monetary policy?