Influence of inflation on long-term economic growth in the context of the raw material orientation of the national economy

In modern conditions for Kazakhstan, it becomes important to choose a development model that would be the most optimal and effective. When developing a model of economic policy, special attention should be paid to the choice of a system of indicators that could adequately describe macroeconomic processes as a whole and their interconnections. At the same time, economists argue that the implementation of the model approach can become the basis for strategic decisions only in a stable economic situation and when in the period under review the change in the cost structure of GDP is not distorted by high inflation. Therefore, in modern conditions of economic development, in our opinion, it is of interest to study the relationship between economic growth and the level of current and threshold inflation. This study substantiates the role of the threshold inflation level and proposes an equation of the functional dependence of this indicator on the main economic indicators. The necessary conditions for the implementation of the inflation targeting regime are disclosed. It is concluded that in conditions of commodity dependence, new effective monetary policy instruments are required.

Download Full-text

Is inflation targeting useful for economic growth?

Voprosy Ekonomiki ◽

10.32609/0042-8736-2017-2-62-74 ◽

2017 ◽

pp. 62-74 ◽

Cited By ~ 7

Author(s):

P. Kartaev

Keyword(s):

Economic Growth ◽

Monetary Policy ◽

Test Performance ◽

Inflation Targeting ◽

Developing Economies ◽

Empirical Studies ◽

Growth Regime ◽

Potential Channels

The paper presents an overview of studies of the effects of inflation targeting on long-term economic growth. We analyze the potential channels of influence, as well as modern empirical studies that test performance of these channels. We compare the effects of different variants of inflation targeting (strict and mixed). Based on the analysis recommendations on the choice of optimal (in terms of stimulating long-term growth) regime of monetary policy in developed and developing economies are formulated.

Download Full-text

Effectiveness of Monetary Policy Instruments on Economic Growth in Jordan Using Vector Error Correction Model

International Journal of Economics and Finance ◽

10.5539/ijef.v9n11p194 ◽

2017 ◽

Vol 9 (11) ◽

pp. 194

Author(s):

Rami Obeid ◽

Bassam Awad

Keyword(s):

Economic Growth ◽

Monetary Policy ◽

Policy Instruments ◽

Short Term ◽

Correction Model ◽

Vector Error Correction ◽

Real Gdp ◽

Vector Error ◽

Effect Of Monetary Policy

The global financial crisis emphasized the important role of the prudent monetary policy in supporting economic growth through maintaining price stability. The monetary policy operational framework that was designed in 2008 was updated to include more instruments for managing monetary policy learning from the crisis lessons. Several studies analyzed various dimensions related to economic growth in Jordan such as Abdul-Khaliq, Soufan, and Abu Shihab (2013) and Assaf (2014), there were no studies that investigated the effect of monetary policy on economic growth in Jordan, at least recently, however. The study aims at measuring the effect of monetary policy instruments on the performance of Jordanian economy. Using quarterly data covering the period (2005-2015), an econometric model was examined using Vector Error Correction Model to assess the impact of monetary policy instruments on economic growth. The foremost advantage of VECM is that it has a nice interpretation of long-term and short-term equations. The results showed the existence of positive long-term and short-term effects of monetary policy instruments on the growth of real GDP. The model included three monetary policy instruments besides money supply. They are required reserve ratio, rediscount rate and overnight interbank loan rates as independent variables, and the real GDP growth as a dependent variable. The stationarity of the model time series was addressed. In addition, the stability of the model was tested using stability diagnostics tools. The results showed also an existence of inverse relationship between rediscount rate and economic growth in Jordan over both long and short terms.

Download Full-text

E-Impresa

Electronic Services ◽

10.4018/978-1-61520-967-5.ch029 ◽

2010 ◽

pp. 470-485

Author(s):

Habib Sedehi

Keyword(s):

Sustainable Growth ◽

Strategic Decisions ◽

Whole Process ◽

On Line ◽

Business Game ◽

Break Even Point ◽

The Cost ◽

The Web

Electronic commerce, marketing on line, and network economy are today’s keywords of (possible) success. But how many managers effectively know about the cost and benefits of starting to sell their products and services through the Web? How much they should invest at the beginning and how long does it takes to have a break-even point of their investment? In order to give support for better understanding the process of the Web marketing and to have more elements to decide to “dive” or not in this virtual world a System Dynamics (SD) model (Forrester J.W. 1961, 1971, 1980), has been developed. The model has the aim to support strategic decisions for SME involvement in e-Commerce, pointed out to guarantee sustainable growth and medium-long term success. The project e-Impresa1 analyses the whole process of the investment in building and maintaining a web site, taking into account the main variables of E-commerce. Through a case study, a SD business game model has been developed. The model gives the opportunity to users to evaluate different what-if analysis through the simulation period time (2 years) at each model step time (4 weeks). This chapter will explain the overall architecture of the model and will present some results of use of the model in different conditions.

Download Full-text

E-Impresa

Advances in Business Information Systems and Analytics - Enterprise Information Systems for Business Integration in SMEs ◽

10.4018/978-1-60566-892-5.ch018 ◽

2010 ◽

pp. 326-341

Author(s):

Habib Sedehi

Keyword(s):

Sustainable Growth ◽

Strategic Decisions ◽

Whole Process ◽

On Line ◽

Business Game ◽

Break Even Point ◽

The Cost ◽

The Web

Download Full-text

Is China an Anomaly for the “Law Matters” Hypothesis?

Asian Journal of Law and Society ◽

10.1017/als.2013.2 ◽

2014 ◽

Vol 1 (2) ◽

pp. 339-365 ◽

Cited By ~ 1

Author(s):

Guangdong XU

Keyword(s):

Economic Growth ◽

Environmental Quality ◽

Economic Miracle ◽

Governing Factor ◽

Short Run ◽

Factor Markets ◽

The Law ◽

The Government ◽

The Cost

AbstractIt has long been argued that the legal system does not have a strong role in explaining China’s economic miracle; therefore, China is often presented as an anomaly for the “law matters” hypothesis. This study contributes to the debate from a unique perspective by examining the connection between law and the operation of factor markets. In China, laws and regulations governing factor markets have been systematically distorted by the government, intentionally or unintentionally, to facilitate the nation’s enormous economic growth in the short run at the cost of environmental quality, ordinary citizens’ welfare, and long-term economic health. Thus, China has become a fast-growing but unsustainable economy.

Download Full-text

Monetary regulation and its role in the state’s economic growth

Fìnansi Ukraïni ◽

10.33763/finukr2020.10.081 ◽

2020 ◽

Vol 2020 (10) ◽

pp. 81-94

Author(s):

Viktoriia KOVALENKO ◽

◽

Sergii SHELUDKO ◽

Keyword(s):

Economic Growth ◽

Monetary Policy ◽

Inflation Targeting ◽

Rapid Development ◽

Close Correlation ◽

Fiscal Policies ◽

Common Goals ◽

Sustainable Economic Growth ◽

The Impact

The article provides a comparative analysis of monetary regulation models and explores their impact on economic growth. The aim of the paper is to study models of monetary regulation and their impact on economic growth. The authors claim that monetary regulation of any country in the world should be aimed at ensuring economic growth. The study shows that the rapid development of monetary policy and economic growth theories is marked by certain contradictions, uncertainty and cross flows. Based on the analysis of the views of researchers on the impact of monetary regulation on economic growth, the authors conclude that concepts are divided according to those that characterize weak relations between these phenomena, and those that prove close correlation. The authors state that in Ukraine, in conditions of using a monetary design based on the inflation targeting regime and taking into account the importance of increasing the efficiency of using main instruments of monetary regulation, it is necessary, first of all, to ensure the consistency of monetary and fiscal policies. The coordination of monetary and fiscal policies should consist of developing and implementing them in such a way that they do not contradict each other and together contribute to the achievement of the common goals of economic policy, such as sustainable economic growth and low unemployment in terms of long-term price and external stabilities. That is, the main problem of the significant influence of monetary regulation on economic growth in the country lies in restoring the effectiveness of the channels of the transmission mechanism of monetary policy, which depends on the choice of monetary design.

Download Full-text

This report represents a typical example of process costing. The following remarks are indicative of the complexity of this account ing system. For each element, the manufacturing cost per unit is determined and the variations compared to the preceding finan cial year. The components of each cost per unit are subtly ana lyzed. For example, the item concerning raw soda is analyzed in the company report as follows: Raw soda cost in 1827............. 9F50 for 100 d. it cost in 1828 ........... 9F00 for 100 d. that is an improvement of . . . . 0F50 due to 1) a difference in the price of sulfur 2) a difference in the price of salt 3) a difference in the price of coal 4) a decrease of the costs of maintenance and repair Those advantages are in fact slightly reduced by increases in other expenses, but we produced this year 448 000 d more than the preceding year, consequently the overhead costs for salaries and interests contribute to the cost per unit in a smaller proportion. The Accounting Process. From the account for manufacturing glass, it is apparent the way that the costs of production were determined for the period. Each branch was involved in the pro duction of only one product, so that costs were first calculated for each branch. The manufacturing cost included all the expenses for raw material, wages, expenses for maintenance and repair, and all the investments concerning the branch, including the construction of buildings. The manufacturing cost determined the “price" at which the branches sold their production to the Headquarters in Paris, which was the only division of the company that could sell to customers. In Paris, a new cost price was calculated including the operating cost, depreciation, and dividends. For example, the cost of abrasion and polishing was said to include three essential elements: Expenses.................. 58 454 W ear.........................21 802 Interests .................. 18 002 TOTAL .................... 98 260 “Wear” means depreciation of buildings and machinery, and "in terests" are the profit distributions paid to the partners. Since (l)the statutes of 1702 forbade long-term debts and (2) the part

Accounting in France (RLE Accounting) ◽

10.4324/9781315871042-25 ◽

2014 ◽

pp. 257-257

Keyword(s):

Operating Cost ◽

Essential Elements ◽

Cost Price ◽

Raw Material ◽

Manufacturing Cost ◽

Maintenance And Repair ◽

Costs Of Production ◽

The Cost ◽

The Way

Download Full-text

PENGARUH INDEKS PERSEPSI KORUPSI, KEBIJAKAN MONETER DAN FISKAL TERHADAP FUNDAMENTAL EKONOMI MAKRO DI INDONESIA

Media Ekonomi ◽

10.25105/me.v23i2.3324 ◽

2015 ◽

Vol 23 (2) ◽

pp. 121

Author(s):

Fira Elfrida ◽

Dian Oktaviani

Keyword(s):

Economic Growth ◽

Dynamic Models ◽

Capital Expenditure ◽

Policy Instruments ◽

Fiscal Policies ◽

Short Term ◽

Corruption Perception Index ◽

Long Run ◽

Corruption Perception

<em>The purpose of this study is to examine the effect of the Corruption Perception Index (CPI), monetary and fiscal policies on macroeconomic fundamentals in Indonesia with the period 2005 - 2013. The variables used in this study include economic growth and inflation as dependent variables, Corruption Perception Index (GPA), BI Rate, statutory reserve requirements, tax revenues, subsidies, capital expenditure and goods expenditure as unbounded (free) variables. The analysis method used is the Error Correction Model (ECM) approach by estimating the static and dynamic models to determine the long-term balance and short-term balance. The results of this study indicate that in the short-term economic growth is significantly influenced by tax and subsidy revenues which are part of the fiscal policy component, while in the long run are significantly influenced by the BI Rate and minimum statutory demand deposits which are monetary policy instruments. And in the short run inflation is significantly influenced by the BI Rate, while in the long term the Corruption Perception Index (CPI), monetary and fiscal policies do not significantly affect inflation</em>

Download Full-text

Koszty zewnętrzne transportu w Polsce

Przegląd Naukowy Inżynieria i Kształtowanie Środowiska ◽

10.22630/pniks.2018.27.1.4 ◽

2018 ◽

Vol 27 (1) ◽

pp. 28-41 ◽

Cited By ~ 1

Author(s):

Barbara Pawłowska

Keyword(s):

Economic Growth ◽

Policy Instruments ◽

Vital Role ◽

Transport Sector ◽

External Costs ◽

Negative Externalities ◽

External Effects ◽

Socio Economic Development ◽

Effective Transport ◽

The Cost

The development of transport sector is very closely linked to the process of socio-economic development. The interrelations between transport and economic growth are complex and there are many feedbacks. Transport has a vital role – it brings the markets closer together, increases production, activates regions around the infrastructure, enabling other sectors to function smoothly. Transport is also the source of many significant negative externalities for the environment, society and economy. It also turns out that, despite many years of experience in the study of the external effects and costs of transport, there are still large discrepancies in approaches and research methods, as well as terminology and rules for defining the concepts. The aim of this article is to review available studies on the estimation of external costs and to estimate these costs for transport in Poland using methods recommended by the European Commission. Knowledge of the cost external of transport is the basis for the internalisation of these costs and it allow to choose the most effective transport policy instruments.

Download Full-text

FACTORING AS A NEW POSSIBILITY IN THE FINANCIAL SECTOR

Monte Journal Volume 1, No.3 (2019): December - International Scientific Journal Monte ◽

10.33807/monte.2.201908435 ◽

2019 ◽

Vol 1 (2) ◽

Author(s):

Arjeta Hallunovi ◽

Elez Osmanovic

Keyword(s):

Banking Sector ◽

Financial Sector ◽

Accurate Information ◽

Strategic Decisions ◽

Working Capital ◽

The Past ◽

Banking Market ◽

The Cost ◽

Short Time

Over the past fifteen years, an increasing number of small and medium-sized companies have begun to consider factoring as a practical source of working capital. Unfortunately, the availability of accurate information and time has not kept the same pace with the growing interest in this used form of funding. The financial sector, especially the banking sector, has been hit by the difficulties generated by the tensions of debt dependence, which are affecting the banking market assessment and its ability to create medium and long-term funds. Consequently, making a comparison with the past, in general, the most valued valuation methods are the cost of funds which have increased significantly. Current economic conditions, characterized by credit constraints, make factoring one of the most favorable solutions for businesses. This funding method is one of the ways it takes a short time to negotiate and one of the easiest methods to provide working capital funds. Factoring services offer an alternative to credit to companies that need little help with funds. By selling your receivables to a factoring company, you receive a portion of the forward amount and receive the rest, minus a percentage that the company receives as a payment as soon as the amount is collected. You get most of your funds before the customer has paid the account, instead of waiting until after paying the bill. The factoring service works to collect accounts receivable so that you can devote your resources and efforts elsewhere to your business. Through factoring, businesses can enable their boards and senior management to make better informed decisions; proactively manage the provisions and effects on capital plans; make strategic decisions with a view to mitigating risks in the event of current underlying conditions; get assistance in understanding the evolving risk nature of the banking sector.

Download Full-text