How To Prepare the EU Integration: Banking System, Monetary Policy, and Exchange Rate in Macedonia

This paper provides an analysis of the liquidity management of the euro. We tested the influence of five variables (the exchange rate, the price of oil, the EU deficit, the EU interest rate, and the U.S. interest rate) on the euro liquidity supply in addition to the fluctuation of the liquidity supply before and after September 11, 2001. While the literature focuses on the internal European institutional environment, this study looks at the international systemic risks and their influence on the liquidity supply. Ultimately, we come to the conclusion that the ECB’s liquidity supply is affected by international factors.

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Communication as an instrument for enhancing trust in a central bank: the case of Ukraine

Banks and Bank Systems ◽

10.21511/bbs.14(2).2019.09 ◽

2019 ◽

Vol 14 (2) ◽

pp. 106-119 ◽

Cited By ~ 1

Author(s):

Yuliia Shapoval ◽

Kateryna Anufriieva ◽

Svitlana Brus ◽

Yevhen Bublyk

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Central Bank ◽

Financial Services ◽

Inflation Targeting ◽

Banking System ◽

Communication Strategy ◽

Necessary Condition ◽

Communication Policy ◽

Market Participants

The relevance of trust in the central bank is determined by the rapid growth of the gap between the expectations of a regulator and market participants regardless of the reforms carried out by the NBU. Therefore, the need to use the “non-traditional” monetary policy instruments has enhanced the role of verbal interventions in the context of inflation targeting. The aim of the article is to ground that trust causes adequate rational behavior of the market participants in response to the central bank’s communication policy. The type of this research is an explanatory research method. As determined, trust is the necessary condition for the effectiveness of the central bank’s communication strategy and it favors the achievement of proclaimed objectives. It is established that although since 2014 the NBU activated verbal interventions as an additional instrument to anchor expectations, the increase of transparency does not prompt the trust because of the lack of confidence of citizens in the NBU and high level of stress in the domestic financial sector. It is emphasized that the pursuit of inflation targeting requires expanded communication to gather the expectations of economic agents. The NBU, in its communication policy concerning the economic climate, underlines devaluation expectations, the exchange rate and explanations on the discount rate. However, the deviation of expected enterprises’ exchange rate from the actual exchange rate, growing velocity of money circulation against the declining share of funds involved in the banking system, low monetization level and low penetration of financial services evidence the distrust in monetary policy.

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Recent Monetary Policy in Turkey: Capital Flow, Reserves and Exchange Rate

International Conference on Eurasian Economies 2011 ◽

10.36880/c02.00241 ◽

2011 ◽

Author(s):

Şaziye Gazioğlu

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Central Bank ◽

Capital Flows ◽

Stock Prices ◽

Financial Stability ◽

Real Exchange Rates ◽

Banking System ◽

Capital Flow ◽

Capital Inflows

In this paper, we investigate the recent monetary policies and development of Turkish banking system during the post 2001 financial and banking crisis. We explore the effects of capital inflows and outflows to real exchange rates and the real stock market prices, before and after the financial crisis. We investigate the relationship between real exchange rate, real stock prices and capital flows. We decompose the foreign flows into real assets and liabilities, in order to investigate the possible long-term effect of inflows and outflows. Reversal of capital flow seems to create a possibility of exchange rate crisis. The Turkish Central Bank by taking lessons from this experience they formulate their recent policies accordingly. Recent Monetary Policy mix in Turkey aims to have financial stability by increasing the reserve ratio in each component of capital flows in Turkey. The ratio increases shorter the period of the asset. The Central Bank work claims to have an effect similar to inflation targeting.

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Exchange Rates, Monetary Policy, and Interest Rates in the Dominican Republic during the 1990s Boom and New Millennium Crisis

Journal of Latin American Studies ◽

10.1017/s0022216x05009843 ◽

2005 ◽

Vol 37 (4) ◽

pp. 727-738 ◽

Cited By ~ 4

Author(s):

JOSÉ R. SÁNCHEZ-FUNG

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Gross Domestic Product ◽

Exchange Rates ◽

Interest Rates ◽

Banking System ◽

Bank Supervision ◽

Exchange Rate Dynamics ◽

The Impact ◽

New Millennium

This article gives an account of the developments in the Dominican Republic's economy from the 1990s boom to the crisis of the new millennium, focusing on the monetary and exchange rate dynamics behind that transition. It is argued that the liberalisation of interest rates in the 1990s, together with an appreciated real exchange rate and weak bank supervision, led to the dollarisation of the banking system. These and other structural imbalances exacerbated the impact of a series of adverse shocks on the economy at the beginning of the millennium, including a banking crisis costing approximately 20 per cent of gross domestic product in 2003.

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On the Exchange Rate Policy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2010-1-21-28 ◽

2010 ◽

pp. 21-28

Author(s):

K. Yudaeva

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Inflation Targeting ◽

Exchange Rate Policy ◽

Institutional Changes ◽

Crisis Period ◽

Local Currency ◽

High Inflation ◽

Rate Policy ◽

The Exchange Rate

The level of trust in the local currency in Russia is very low largely because of relatively high inflation. As a result, Bank of Russia during crisis times can not afford monetary policy loosening and has to fight devaluation expectations. To change the situation in the post-crisis period Russia needs to live through a continuous period of low inflation. Modified inflation targeting can help achieve such a result. However, it should be amended with institutional changes, particularly development of hedging instruments.

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Impact of external currency exposures on macroeconomic policies

Voprosy Ekonomiki ◽

10.32609/0042-8736-2020-8-23-40 ◽

2020 ◽

pp. 23-40

Author(s):

I. V. Prilepskiy

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Positive Impact ◽

Exchange Rate Regime ◽

Macroeconomic Policies ◽

Panel Regressions ◽

Financial Account ◽

Currency Exposure ◽

Cross Country ◽

The Impact

Based on cross-country panel regressions, the paper analyzes the impact of external currency exposures on monetary policy, exchange rate regime and capital controls. It is determined that positive net external position (which, e.g., is the case for Russia) is associated with a higher degree of monetary policy autonomy, i.e. the national key interest rate is less responsive to Fed/ECB policy and exchange rate fluctuations. Therefore, the risks of cross-country synchronization of financial cycles are reduced, while central banks are able to place a larger emphasis on their price stability mandates. Significant positive impact of net external currency exposure on exchange rate flexibility and financial account liberalization is only found in the context of static models. This is probably due to the two-way links between incentives for external assets/liabilities accumulation and these macroeconomic policy tools.

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The influence of inflation targeting on the pass-through effect of the exchange rate

Voprosy Ekonomiki ◽

10.32609/0042-8736-2018-11-70-84 ◽

2018 ◽

pp. 70-84

Author(s):

Ph. S. Kartaev ◽

Yu. I. Yakimova

Keyword(s):

Developing Countries ◽

Monetary Policy ◽

Exchange Rate ◽

Inflation Targeting ◽

Policy Regime ◽

Short And Long Term ◽

The Exchange Rate ◽

Pass Through ◽

The Impact

The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.

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Monetary policy regimes in Russia: Guidelines for furtherquantitative studies

Voprosy Ekonomiki ◽

10.32609/0042-8736-2017-4-38-60 ◽

2017 ◽

pp. 38-60 ◽

Cited By ~ 7

Author(s):

A. Pestova

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Interest Rates ◽

Quantitative Research ◽

Policy Regimes ◽

Policy Effects ◽

Exchange Rate Targeting ◽

Basic Parameters

This paper analyzes the basic parameters of monetary policy in 2000-2015 in Russia. We provide the overview of tools and objectives of monetary policy of the Bank of Russia and identify the periods of homogeneity of monetary policy regimes: from money base targeting to exchange rate targeting and finally, to interest rates policy. On the basis of this research we develop the recommendations for further quantitative research aimed at estimation of monetary policy effects in Russia.

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The Role of Different Channels in Transmitting Monetary Policy into Output and Price in Vietnam

Journal of Economics and Development ◽

10.33301/2015.17.01.02 ◽

2015 ◽

pp. 20-40

Author(s):

Vinh Nguyen Thi Thuy

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Interest Rate ◽

Money Supply ◽

Monetary Transmission ◽

Impulse Response Functions ◽

Short Run ◽

The Exchange Rate ◽

The Interest Rate ◽

Interest Rate Channel

The paper investigates the mechanism of monetary transmission in Vietnam through different channels - namely the interest rate channel, the exchange rate channel, the asset channel and the credit channel for the period January 1995 - October 2009. This study applies VAR analysis to evaluate the monetary transmission mechanisms to output and price level. To compare the relative importance of different channels for transmitting monetary policy, the paper estimates the impulse response functions and variance decompositions of variables. The empirical results show that the changes in money supply have a significant impact on output rather than price in the short run. The impacts of money supply on price and output are stronger through the exchange rate and credit channels, but however, are weaker through the interest rate channel. The impacts of monetary policy on output and inflation may be erroneous through the equity price channel because of the lack of an established and well-functioning stock market.

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Forming an effective financial and investment environment in the eu countries-experience for Ukraine

Problems of Innovation and Investment Development ◽

10.33813/2224-1213.20.2019.1 ◽

2019 ◽

pp. 4-13

Author(s):

Ryzhyuk Yevgeny

Keyword(s):

Banking System ◽

Executive Branch ◽

Investment Environment ◽

Financial Investment ◽

Eu Countries ◽

Currency Exchange ◽

Clearing System ◽

Financial Infrastructure ◽

Supranational Level ◽

The Eu

The subject of the research is a set of institutional institutions and organizational and managerial relations that effectively regulate the financial and investment environment in the EU countries, comparing them with Ukrainian realities.The goal of writing this article is to develop practical and scientific-methodicalrecommendations on how to increase the efficiency of using financial and investment potential based on the experience of EU countries. The methodology of thework-system-structural and comparative studies (to understand the logic of thefunctioning of institutions that form the investment environment and the mechanisms of their interaction); monographic analysis (in studying the problems ofattracting investors); historical and economic analysis (in assessing the state andprospects of the European, as well as the Ukrainian economy). Results of work -it is revealed that modern European regulators are aimed at forming a holisticinvestment and financial infrastructure and investment platform at the supranational level. It was proposed to carry out further liberalization of currency regulation in Ukraine in order to transform it into a convenient and efficient electronicautomated currency exchange system and introduce the integration of the domestic depository system into the international depositary clearing system Clearstream.It was noted that the financial and investment environment in Ukraine is blockedand domestic monopolies are interested in this, thanks to lobbying in the Verkhovna Rada of Ukraine and in the executive branch they have distorted financial,investment and currency legislation for their interests and needs. Conclusions-thepresence of a holistic investment and financial infrastructure in the EU countriesis due to the gradual convergence and unification of legislation at the nationallevel to the supranational level. In addition, it is reasonably high investment positions of Ireland in the world and it was proposed to use this experience to createa favorable financial and investment environment in Ukraine. Note that the formation of the financial and investment environment in Ukraine according to European standards is hampered by: oligarchic monopolies, which parasitizes mainly onnatural monopolies; government corruption; confusing and incomprehensible legislation for investors; high tax rates and tax administration system; instability ofthe banking system, the risks of hryvnia devaluation; the insecurity of landagrarian relations; as well as armed conflict in the east of Ukraine.

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