Monetary Policy in the Japanese Economy Incorporating Energy Prices

2016 ◽  
pp. 93-106 ◽  
Author(s):  
Naoyuki Yoshino ◽  
Farhad Taghizadeh-Hesary
Keyword(s):  
Monetary Policy ◽  
Japanese Economy ◽  
Energy Prices

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

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

2014 ◽  
Vol 3 (1) ◽  
pp. 43-58
Author(s):  
Keyword(s):  
Monetary Policy ◽  
Side Effects ◽  
Interest Rate ◽  
Money Supply ◽  
Side Effect ◽  
Aggregate Demand ◽  
Oil Prices ◽  
Energy Prices ◽  
Aggregate Supply ◽  
The Cost

Abstract 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.

Monetary Policy in the Conditions of Influence of Negative Factors of the World Economy

2019 ◽  
Vol 7 (1) ◽  
pp. 8-13 ◽  
Author(s):  
Ольга Николайчук ◽  
Olga Nikolaychuk ◽  
Д. Кадырова ◽  
D. Kadyrova
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
World Economy ◽  
Exchange Rate Regime ◽  
Global Market ◽  
Energy Prices ◽  
Consumer Prices ◽  
The World ◽  
The Impact ◽  
Negative Factors

The article analyzes the monetary policy in the context of exogenous shocks of the external sector. The Bank of Russia and Rosstat use official statistics for 2000–2018. The parameters of the action of negative factors of the world economy apply the conditions of world trade and changes in the exchange rate of national currencies. The graphic form analyzes the susceptibility of macroeconomic indicators to changes in the external market and their dependence on fluctuations in energy prices. The influence of consumer prices and inflation on the monetary policy of the Central Bank is considered. The analysis allows us to conclude about the relationship of the effect of events from processes in the global market. It was concluded that, despite these risks, there are optimal ways of conducting monetary policy, which remain the targeting of inflation and the effect of the floating exchange rate regime of the national currency. For effective results in reducing the dependence of macroeconomic processes on the impact of external shocks, coordinated activities of all branches of economic power, and their effective macro-prudential and fiscal policies are important.

Macroeconomic Policy in Japan

2002 ◽  
Vol 1 (2) ◽  
pp. 133-165 ◽  
Author(s):  
Warwick J. McKibbin
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Macroeconomic Policy ◽  
Japanese Economy ◽  
Open Market ◽  
Government Bonds ◽  
Fiscal Adjustments ◽  
Inflation Targets

This paper explores the composition of the macroeconomic policy packages that would be effective in stimulating the Japanese economy. An empirical econometric model is used to predict the consequences of a monetary stimulus consisting of an open-market purchase of government bonds by the Bank of Japan combined with the announcement and implementation of inflation targeting in Japan. The paper also compares the impacts of permanent, temporary, and phased fiscal adjustments. The model predicts that monetary policy would be effective in stimulating the Japanese economy through causing a depreciation of the yen. Similarly, a substantial fiscal consolidation in Japan would be only mildly contractionary for the first two years but then would yield substantial long-term benefits to the Japanese economy. Combining a credible fiscal contraction that is phased in over three years with an inflation target would be likely to provide a powerful macroeconomic stimulus to the Japanese economy, through a weaker exchange rate and lower long-term real interest rates, and would sustain higher growth in Japan for a decade. Thus, a switch in the macroeconomic policy mix toward a loose monetary policy (e.g., setting inflation targets between 2 and 3 percent) and a tight fiscal policy is likely to be an important part of a successful package of reforms to raise Japanese productivity growth over the coming years.

Ben S. Bernanke in 2005

2017 ◽  
pp. 1-14
Author(s):  
Wei Li
Keyword(s):  
Monetary Policy ◽  
First Year ◽  
Energy Prices ◽  
Distant Future ◽  
Mortgage Industry ◽  
Good Shape ◽  
Board Of Governors ◽  
Business Confidence ◽  
President Bush ◽  
The U.S

The case has been used in a first-year required course called Global Economies and Markets in a module on monetary policy. On October 24, 2005, President Bush nominated Ben S. Bernanke to be chairman of the board of governors of the Federal Reserve System for a term of four years along with a 14-year term on the board of governors. With the U.S. Senate confirmation widely anticipated, Bernanke was expected to take over stewardship of the U.S. monetary policy from Chairman Alan Greenspan when he retired in January 2006. While the U.S. economy was in good shape at the end of 2005, Bernanke had to prepare to deal with two challenges when charting a course for managing U.S. monetary policy. First, the sharp rise in energy prices that began in 2002 had the potential to bring back the specter of inflation and dampen desired consumer and business spending. Second, the housing boom could turn into a housing bust, throwing the mortgage industry into turmoil and weakening consumer business confidence. There was also the possibility that the housing bust could affect broader financial markets. Bernanke had to consider his options for dealing with contingencies in the not-so-distant future.

scholarly journals Impact of macroeconomic policies on national food security in Pakistan: simulation analyses under a simultaneous equations framework  

2017 ◽  
Vol 63 (No. 10) ◽  
pp. 471-488
Author(s):  
Akbar Muhammad ◽  
Jabbar Abdul
Keyword(s):  
Monetary Policy ◽  
Food Security ◽  
Food Production ◽  
Generalized Method Of Moments ◽  
Simultaneous Equations ◽  
Energy Prices ◽  
Policy Decisions ◽  
The Impact ◽  
Food Inflation ◽  
National Food Security

The UN’s Vision 2050 regarding food security emphasizes a doubling of food production by 2050 to ensure sufficient food availability. It should also be considered that economic accessibility to food depends mainly on food prices in developing countries. Vision 2050 requires proper planning at the national level to ensure that targets are met in the coming years. This study was conducted to analyse the impact of macroeconomic policy decisions on domestic food production and food inflation in Pakistan. A simultaneous equations model, estimated using the generalized method of moments (GMM) with annual data from 1963–1964 to 2013–2014, was developed. Simulation analyses were conducted by using the model to analyse the impact of monetary policy, fiscal policy and energy price policy; policy recommendations are also given. A significant increase in public expenditure for the development of infrastructure and the lowering of energy prices would significantly improve the availability and accessibility parameters of food security in Pakistan. The recent fall in energy prices will also be advantageous for both the availability as well as economic accessibility to food. Tight monetary policy for a limited time period may be helpful to control food inflation, but may also exert some minor adverse effects on food production. Moreover, monetary policy decisions must be taken while considering all sectors of the economy. The results of the study provide some important guidelines for national food security policy that may help in realising the UN’s Vision 2050.

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