scholarly journals Central Bank Policy in a More Perfect Financial System

1998 ◽  
pp. 123-161 ◽  
Author(s):  
Jürgen Von Hagen ◽  
Ingo Fender
Keyword(s):  
Central Bank ◽  
Financial System

scholarly journals Monetary policy change of the Central bank of Poland

2015 ◽  
Vol 15 (3) ◽  
pp. 246-259
Author(s):  
Ireneusz Kraś
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Central Bank ◽  
Policy Change ◽  
Financial System ◽  
Financial Statements ◽  
Democratic Character ◽  
National Bank ◽  
The Republic ◽  
The Government

Abstract 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.

scholarly journals THE EFFECT OF SBI RATE THROUGH FINANCIAL SYSTEM TO ECONOMIC GROWTH OF INDONESIA

2007 ◽  
Vol 8 (4) ◽  
Author(s):  
Donni Fajar Anugrah
Keyword(s):  
Economic Growth ◽  
New Zealand ◽  
Central Bank ◽  
Inflation Targeting ◽  
Financial System

Bank Indonesia menerapkan Inflation Targeting Framework (ITF) sejak tahun 2000 dengan menggunakan base money sebagai alat kebijakan moneternya. Hasil penerapan framework ini kurang optimal jika melihat inflasi aktual yang tidak selalu berada dalam kisaran target yang telah diumumkan. Di sisi lain, beberapa negara yang juga menerapkan ITF, seperti New Zealand, telah berhasil mencapai tingkat inflasi yang rendah sesuai dengan target yang diumumkan. Mereka menggunakan suku bunga sebagai alat kebijakan moneter dalam penerapan ITF. Oleh karena itu, Bank Indonesia memutuskan untuk menggunakan suku bunga SBI sebagi alat kebijakan untuk mencapai inflasi yang rendah.Permasalahan yang perlu mendapat perhatian yaitu seberapa besar efek dari kebijakan ini terhadap pertumbuhan ekonomi secara bertahap. Dalam penerapannya, suku bunga SBI akan mempengaruhi sistem keuangan melalui suku bunga pasar, seperti suku bunga PUAB dan kredit. Secara teoritis kedua suku bunga pasar terseut dapat mempengaruhi konsumsi dan investasi. Penelitian ini akan lebih difokuskan pada efek suku bunga pada konsumsi dan investasi yang pada akhirnya berdampak pada tingkat pertumbuhan ekonomi.Dengan menggunakan pendekatan Joahnsen, akan dapat dijelaskakn hubungan jangka panjang antar variabel dan menghasilakn ECM yang digunakan dalam model jangka pendeknya. Hasil penelitian menunjukkan bahwa suku bunga dan konsumsi memiliki hubungan negatif hanya di jangka pendek. Sedangkan suku bunga dengan investasi berhbungan negatif dalam jangka panjang. Hasil akhir menunjukkan peningkatan  suku bunga akan berakibat pada penurunan pertumbuhan ekonomi.Keywords: central bank, sbi rate, consumption, investmentm economic growth, inflation targetingJEL: E21, E52, E58, F43

scholarly journals Should Monetary Policy Respond To Asset Price Bubbles? Revisiting the Debate

2008 ◽  
Vol 206 ◽  
pp. 25-34 ◽  
Author(s):  
Sushil Wadhwani
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Asset Prices ◽  
Asset Price ◽  
Financial System ◽  
Central Banks ◽  
Macroeconomic Performance ◽  
Asset Price Bubbles ◽  
Price Bubbles ◽  
Inflation Forecasts

Recent events have highlighted the importance of asset prices to central bank decisions. We argue that, in response to asset price bubbles, central banks should ‘lean against the wind’ (LATW hereafter). Even if the bubbles themselves are not significantly affected by LATW, macroeconomic performance can be improved if monetary policy reacts to asset price misalignments over and above the reaction to fixed horizon inflation forecasts. In addition, it might reduce the probability of bubbles arising at all. This article restates the case for LATW, and reviews the debate. In particular I respond to various criticisms that have been made against LATW and briefly consider alternative policies designed to make the financial system less cyclical.

Eliminating Trust Issues in Islamic Interbank Monetary System by Blockchain Technology

2020 ◽  
pp. 1-11
Author(s):  
Muhammet Furkan Yavuz ◽  
Buerhan Saiti
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Financial System ◽  
Money Market ◽  
Islamic Banks ◽  
Test Results ◽  
Profit Rate ◽  
Monetary System ◽  
Blockchain Technology ◽  
Incentive Problem

In the literature, it is argued that there is an agency or incentive problem in the Mudarabah Interbank Instrument (MII), an instrument where the depositor is the rabbul-mal (capital provider or investor) while the counterparty is the mudarib or entrepreneur. It is to the receiving bank's advantage to ‘declare' a lower profit rate. To solve this problem, the Malaysian Central Bank revised the rules by setting a minimum benchmark rate for the MII. This practice is quite similar to the fixed interest rate in conventional financial system which may trigger several Shariah issues. In this chapter, the authors argue that the blockchain technology is a better way to address the issue and propose and how it overcomes the issue in the Islamic interbank money market. As implication of the study, Islamic banks can start using it as a testing process for the future businesses, and in accordance with the analyzing test results, they can implement the system for every occasion.

To Remember or Forget?

2021 ◽  
pp. 105-130
Author(s):  
Mats Larsson ◽  
Kristina Lilja
Keyword(s):  
Twentieth Century ◽  
Risk Management ◽  
Financial Crisis ◽  
Central Bank ◽  
Financial Crises ◽  
Commercial Banks ◽  
Financial System ◽  
Business Strategies ◽  
Financial Problems ◽  
Governmental Control

Since the early twentieth century, the Swedish financial system has experienced five major financial crises—both domestic and internationally generated. With three crises within 25 years, the use of memories from previous financial problems seems a little far-fetched. But so far this has not explicitly been analysed. However, with sources from official investigations, material from the Swedish central bank (the Riksbank) as well as memos from the Bank Inspection Board and larger commercial banks, it would be possible to reconstruct how experiences from earlier financial crises influenced banks risk management and business strategies. During the financial crisis of the 1990s the lack of memories from the 1920s and 1930s was noticed. It was said that knowledge of risk management had been reduced during 60 years of governmental control. This chapter explores this loss of memory using archives and interviews.

Functioning of monetary and financial system and the depression of the Russian economy

2016 ◽  
pp. 34-55
Author(s):  
V. Manevitch
Keyword(s):  
Central Bank ◽  
Interest Rates ◽  
Financial System ◽  
External Shocks ◽  
Interconnected System ◽  
Export Prices ◽  
Russian Economy ◽  
Oil Export ◽  
Macroeconomic Indicators ◽  
Short Run

The monetary and financial sphere of the Russian economy is considered in the article as an interconnected system, which involves cross-border movement of capital, the budget deficit formation and financing, the Central Bank monetary policy, the credit activity of banks. The article traces the changes in the functioning of the monetary and financial system of Russia in 2014-2015 under the influence of external shocks. The author challenges some of the accepted explanations of the dynamics of macroeconomic indicators, in particular, the automatic dependency in the short run of the exchange rate on the oil export prices, a critical dependence of the spectrum of interest rates on the Central Bank key rate. Thanks to the repatriation of foreign assets in the Russian economy there remains the possibility of appreciating the ruble and lowering interest rates, despite the decline in export prices and repayment of external liabilities.

scholarly journals On the impossibility of central bank independence: four decades of time- (and intellectual) inconsistency

2018 ◽  
Vol 43 (1) ◽  
pp. 61-84 ◽  
Author(s):  
Christopher A Hartwell
Keyword(s):  
Central Bank ◽  
Political Institutions ◽  
Institutional Analysis ◽  
Financial System ◽  
Central Banks ◽  
Central Banking ◽  
Central Bank Independence ◽  
Time Inconsistency ◽  
Fortieth Anniversary

Abstract The intellectual justification for modern central banking, time-inconsistency, celebrated its fortieth anniversary in 2017 alongside the Cambridge Journal of Economics. However, the key progeny of the time-inconsistency literature, central bank independence, has fundamental flaws that have been thus far neglected in mainstream research. In the first instance, the argument for independence relies on a utilitarian rather than institutional analysis, one that neglects the genesis of central banks and their relation to other institutions within a country. Second, central bank independence neglects the complex interdependencies of the global monetary and financial system. Applying an institutional lens to the concept of central bank independence, I conclude that ‘independence’ fails under the reality of globalization as much as it does in a domestic context. With central banks reliant on all manner of political institutions, they are never really independent operationally or in terms of policy.

Monetary Reform, 1923–30: A Prelude to Colombia's Economic Development

1980 ◽  
Vol 40 (1) ◽  
pp. 98-104 ◽  
Author(s):  
Bruce R. Dalgaard
Keyword(s):  
Economic Development ◽  
Central Bank ◽  
Financial System ◽  
Monetary Reform ◽  
Fiscal System ◽  
Economic Infrastructure

Two financial missions to Colombia headed by Edwin W. Kemmerer are examined to determine their impact on Colombia's financial system and on the flow of American investment to Colombia. The 1923 and 1930 missions established a central bank and completely reorganized the Colombian financial and fiscal system. These reforms served to provide enough stability to encourage American investment, which helped to develop a financial and economic infrastructure in Colombia.

scholarly journals Repercusiones monetarias de la crisis financiera de fines del siglo xx

UDA AKADEM ◽  
2018 ◽  
pp. 4-19
Author(s):  
Carlos Cordero-Díaz
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Institutions ◽  
Social Impact ◽  
Financial Regulation ◽  
Financial System ◽  
Explanatory Factors ◽  
Monetary System ◽  
The Impact ◽  
Siglo Xx

La crisis que comprometió al sistema financiero ecuatoriano a fines del siglo XX es de las más fuertes que ha enfrentado nuestro país, comparable, en cuanto a sus implicaciones macroeconómicas y reformas económicas, con la que se desarrolló en los años veinte del siglo pasado; pero más devastadora en términos de los efectos sociales que tuvo. Los testimonios de personas que perdieron sus recursos económicos, primero en el feriado bancario y luego con la liquidación de varios bancos e instituciones financieras, demuestran la magnitud de la crisis.La culminación de la crisis financiera coincide con el cambio del régimen monetario en nuestro país, cambio que también provocó pérdidas a ciudadanos y empresas, ya que el elevado tipo de cambio utilizado, provocó una significativa reducción en el valor de los ahorros. La participación del Estado ecuatoriano en el surgimiento, desarrollo y culminación de la crisis financiera fue sin duda determinante. La nueva normativa para la regulación bancaria y financiera dictada a inicios de los años noventa fue uno de los factores explicativos del origen; la entrega de recursos a las instituciones financieras, a través del Banco Central y a los depositantes a través de la AGD, permitieron que la crisis el sistema financiero se trasladara al ámbito monetario.El Ecuador inauguró el nuevo siglo con un nuevo régimen monetario y sintiendo también las repercusiones de la las crisis financiera.Palabras claves: crisis financiera, dolarización, banco central, macroeoconomíaAbstractThe crisis which compromised the Ecuadorian financial system in the late twentieth century is the strongest our country has faced, comparable in terms of its macroeconomic implications and economic reforms, with the one developed in the twenties of the last century; however, more devastating in terms of its social impact. The testimonies of people who lost their economic resources first during the bank holiday; and then, with the liquidation of several banks and financial institutions, demonstrate the magnitude of the crisis. The culmination of the financial crisis coincides with the change of the monetary regime in our country; change that also caused losses to citizens and businesses, since the high exchange rate caused a significant reduction in savings value.The participation of the Ecuadorian State in the emergence, development and culmination of the financial crisis was certainly crucial. The new rules for the banking and financial regulation enacted in the early nineties was one of the explanatory factors of the origin. The provision of resources to financial institutions by the Central Bank, and to depositors through the AGD (Deposit Guarantee Agency), enabled the crisis of the financial system to move to the monetary field.Ecuador inaugurated the new century with a new monetary system; but at the same time feeling the impact of the financial crisis. Keywords: Financial Crisis, Dollarization, Central Bank, Macro Economy.

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