Temporary open market operation on MBS repos: any foreshadowing of the financial crisis of 2008?

2009 ◽  
Vol 35 (3) ◽  
pp. 260-273
Author(s):  
Ozgur Akay ◽  
Drew B. Winters
Keyword(s):  
Financial Crisis ◽  
Open Market ◽  
Market Operation ◽  
Financial Crisis Of 2008 ◽  
Open Market Operation

Seeing Like the Fed: Culture, Cognition, and Framing in the Failure to Anticipate the Financial Crisis of 2008

2017 ◽  
Vol 82 (5) ◽  
pp. 879-909 ◽  
Author(s):  
Neil Fligstein ◽  
Jonah Stuart Brundage ◽  
Michael Schultz
Keyword(s):  
Decision Making ◽  
Financial Crisis ◽  
Recent Work ◽  
Open Market ◽  
Financial Instruments ◽  
Federal Open Market Committee ◽  
Macroeconomic Theory ◽  
Making Sense ◽  
Financial Crisis Of 2008 ◽  
Positive Light

One of the puzzles about the financial crisis of 2008 is why regulators, particularly the Federal Open Market Committee (FOMC), were so slow to recognize the impending collapse of the financial system and its broader consequences for the economy. We use theory from the literature on culture, cognition, and framing to explain this puzzle. Consistent with recent work on “positive asymmetry,” we show how the FOMC generally interpreted discomforting facts in a positive light, marginalizing and normalizing anomalous information. We argue that all frames limit what can be understood, but the content of frames matters for how facts are identified and explained. We provide evidence that the Federal Reserve’s primary frame for making sense of the economy was macroeconomic theory. The content of macroeconomics made it difficult for the FOMC to connect events into a narrative reflecting the links between foreclosures in the housing market, the financial instruments used to package the mortgages into securities, and the threats to the larger economy. We conclude with implications for the sociological literatures on framing and cognition and for decision-making in future crises.

scholarly journals MONETARY POLICY IN AN ISLAMIC ECONOMICS

2021 ◽  
Vol 9 (5) ◽  
pp. 315-326
Author(s):  
Bismi Khalidin
Keyword(s):  
Monetary Policy ◽  
Discount Rate ◽  
General Concept ◽  
Economic Systems ◽  
Open Market ◽  
Holy Quran ◽  
Market Operation ◽  
The Holy Quran ◽  
Open Market Operation ◽  
The Stability

The primary aim of this paper is to elucidate the general concept of monetary policy under Islamic Economics. Not only does the stability of but also the growth of the economy in a country strongly depends upon monetary policy implemented. Such the phenomenon also prevails in Islamic Economics in which the term is also ruled by the Holy Quran and the Hadith of the Prophet. Moreover, the Prophet issued some regulations regarding monetary, such as to adopt Dinars and as the Islamic currencies. It is noted that, however, the thing distinguishing between Islamic Economics and other economic systems the variable of interest or usury, where either the Holy Quran or the Hadith clearly states that it is banned. Due to using interest as the yardstick, the conventional monetary instruments such as Open Market Operation, Discount Rate and the likes are not considered as the monetary instruments under Islamic Economics. Therefore, Instead of interest, Islamic Economics adopts Profit Loss Sharing (PLS) system, regarded as the important part of monetary policy. Moreover, Islamic Economics has also its specific monetary standard and instruments, which are far from interest or variables, such as certificates and others.

scholarly journals Monetary Policy Its Instruments and Convergence of Its Objectives: Case of Angola 2005/2017

2019 ◽  
Vol 5 (2) ◽  
pp. 161
Author(s):  
Antonio, Pitshu Massaka
Keyword(s):  
Monetary Policy ◽  
Policy Instruments ◽  
Multiple Linear Regression Model ◽  
Economic Thought ◽  
Policy Framework ◽  
Open Market ◽  
New Paradigm ◽  
Keynesian Model ◽  
Market Operation ◽  
Open Market Operation

<p><em>This paper proposes a new paradigm for the analysis of monetary policy, and presents the monetary policy framework in Angola which includes the policy instruments, and implementation mechanism the way between instrument and objective.<strong> </strong>To study the Monetary Policy instruments in Angola based on a multiple linear regression model. Before the model was conceived an analogy was made about the politics and instruments of monetary policy from the classical Keynesian model in the matter, but also less important also to analyze the concrete objective of monetary policy if the authors agree connected with those currents of economic thought. For the estimation of the equation for the monetary aggregate M2 that represents the money supply by the Central Bank in Angola The author applied the current implementation and the existing theories to display the Angola monetary tools such as basic interest rate for monetary policy orientation (tbna), open market operation, Lending Facility, coefficient of required reserve, net international reserves, and the Gross Domestic Product, the reference oil price to brent. Most of the variables present the expected results.</em></p>

scholarly journals Analisis Kausalitas Cranger Kebijakan Moneter Syari'ah Terhadap Perekonomian Indonesia

2018 ◽  
Vol 5 (2) ◽  
pp. 225
Author(s):  
Khairina Tambunan ◽  
Muhammad Ikhwanda Nawawi
Keyword(s):  
Causal Relationship ◽  
Time Series Data ◽  
Series Data ◽  
Open Market ◽  
Causality Analysis ◽  
Analysis Method ◽  
Market Operation ◽  
Open Market Operation ◽  
Relationship Of ◽  
Data Period

This study aims to explain causality between Islamic monetary policy with Shariah Open Market Operation instrument and Bank Indonesia Sharia Certificate on inflation with time series data period from January 2010 - June 2017 which processed by Granger causality analysis method and using vectorautoregresive model. This study shows a direct causal relationship of OPTS to GDP, SBIS to OPTS and two-way causal relationship between SBIS and GDP.

Monetary Policy Instruments and Bank Risks in China

2013 ◽  
Vol 4 (2) ◽  
pp. 57-71
Author(s):  
Zhongyuan Geng ◽  
Xue Zhai
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Policy Instruments ◽  
Bank Risk ◽  
Open Market ◽  
Reserve Requirement ◽  
Market Operation ◽  
Open Market Operation ◽  
The Interest Rate ◽  
Bank Risks

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 largest and the open market operation the weakest. Their findings provide guidance to the monetary authority and regulatory authorities in monetary policy and banking regulation in China.

Monetary Policy Instruments and Bank Risks in China

2014 ◽  
pp. 518-531
Author(s):  
Zhongyuan Geng ◽  
Xue Zhai
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Policy Instruments ◽  
Bank Risk ◽  
Open Market ◽  
Reserve Requirement ◽  
Market Operation ◽  
Open Market Operation ◽  
The Interest Rate ◽  
Bank Risks

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 largest and the open market operation the weakest. Their findings provide guidance to the monetary authority and regulatory authorities in monetary policy and banking regulation in China.

LIMITED PARTICIPATION, LABOR MARKET SEARCH AND LIQUIDITY EFFECTS

2010 ◽  
Vol 15 (2) ◽  
pp. 201-222 ◽  
Author(s):  
Yan Li
Keyword(s):  
Labor Market ◽  
Open Market ◽  
Limited Participation ◽  
Labor Market Rigidities ◽  
Market Operation ◽  
Labor Market Dynamics ◽  
Market Search ◽  
Labor Search ◽  
Labor Market Search ◽  
Open Market Operation

This paper models the liquidity effects after a contractionary open market operation in a framework that highlights the frictions of limited participation in financial markets and search frictions in labor markets. It is shown that Lucas rigidities, with the aid of labor market rigidities, could generate more persistent liquidity effects even in a context of flexible prices. In addition, the simulation results show that this adapted liquidity and labor search model does a reasonable good job in explaining the observed labor market dynamics in response to shocks of a plausible magnitude, and deliver substantial movements along a downward-sloping Beveridge curve.

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