scholarly journals Movement of the components of Russian financial capital

2021 ◽  
Vol 106 ◽  
pp. 01015
Author(s):  
Valery Smirnov ◽  
Denis Osipov ◽  
Elena Lyubovtseva ◽  
Elvira Kuznetsova ◽  
Ludmila Savinova
Keyword(s):  
Central Bank ◽  
Growth Rates ◽  
Inflation Targeting ◽  
Central Government ◽  
Market Analysis ◽  
Financial Capital ◽  
Credit Policy ◽  
Structural Consequence ◽  
Capital Growth ◽  
Speculative Behavior

In the article there is revealed movement of financial capital components as a substance – the unity of diversity and the diversity of unity. Analysis of USD / RUB, RGBI, RTSI, SBER, IMOEX dynamics revealed speculative behavior of financial capital owners (IMOEX, USD / RUB, SBER) in relation to internal (RGBI) and external (RTSI) market. Analysis of importance of growth rates of GDP and its components revealed the state priority of GDP deflator regulation (Central Bank – inflation targeting) in the context of state revenues growth and, as a structural consequence, reduction of importance of growth rates of GDP and expenditures of households consumption against the background of increase of importance of commodities and services import. At the same time the quite high values of importance of growth rates of export of Russian commodities and services are identical to ones of such countries as Australia, Estonia and Columbia. Analysis of capital growth rates revealed fixation of interrelations between the Central Bank and financial corporations in the context of regulation of money supply and currency outside financial corporations and internal claims. These relations strengthen due to focusing of monetary and credit policy at “clear requirements to central government” and at inflation targeting. Research of the Russian financial capital components movement demonstrated corporate strengthening of interrelations between the Central Bank and the financial corporations and also defined the options for regulation of speculative behavior of financial capital owners.

Analyzing the consistency of the dynamics of the Russian financial capital components

2021 ◽  
Vol 27 (4) ◽  
pp. 851-874
Author(s):  
Valerii V. SMIRNOV
Keyword(s):  
Central Bank ◽  
Growth Rates ◽  
Inflation Targeting ◽  
Central Government ◽  
Systems Approach ◽  
Financial Capital ◽  
Russian Government ◽  
Public Authorities ◽  
Goods And Services ◽  
Speculative Behavior

Subject. The article discusses financial capital issues. Objectives. The study determines the consistency of the dynamics of the Russian financial capital components. Methods. The study is based on the systems approach and methods of statistical, neural network and cluster analysis. Results. I analyze the dynamics of rates, such as USD/RUB, RGBI, RTSI, SBER, IMOEX, and discovered the speculative behavior of financial capital holders (IMOEX, USD/RUB, SBER) in the domestic (RGBI) and external (RTSI) market. Analyzing the importance of growth rates of GDP and its constituents, I found the State prioritized the regulation of the GDP deflator (The Central Bank – inflation targeting), considering a growth in governmental expenditures and the decreased importance of growth rates of GDP and households’ consumption expenditures, as the import of goods and services gets more important. The high importance of rates of growth in the export of goods and services is identical to Australia, Estonia and Columbia. Corporate relationships of the Central Bank and financial corporations focus on the regulation of money supply and currency outside financial corporations and internal claims. The relationships strengthen as the monetary policy get more concentrated on net claims to the central government and inflation targeting. Conclusions and Relevance. The scope of consistency of trends in the Russian financial capital components allows public authorities to regulate a growth in the corporate relations of the Central Bank and financial corporations in order to curb the speculative behavior of financial capital holders. The findings hereof contribute to the knowledge and competence of officials of the Russian Government and the Federal Antimonopoly Services with respect to systemic decisions on control over financial transactions.

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

Central bank transparency, inflation targeting and monetary policy: a panel data approach

2018 ◽  
Vol 45 (6) ◽  
pp. 1159-1174 ◽  
Author(s):  
Gabriel Caldas Montes ◽  
Cristiane Gea
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Panel Data ◽  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Content Type ◽  
Central Bank Transparency ◽  
Policy Interest

Purpose The evidence concerning the effects of the inflation targeting (IT) regime as well as greater central bank transparency on monetary policy interest rates is not conclusive, and the following questions remain open. What is the effect of adopting IT on both the level and volatility of monetary policy interest rate? Does central bank transparency affect the level of the monetary policy interest rate and its volatility? Are these effects greater in developing countries? The purpose of this paper is to contribute to the literature by answering these questions. Hence, the paper analyzes the effects of IT and central bank transparency on monetary policy. Design/methodology/approach The analysis uses a sample of 48 countries (31 developing) comprising the period between 1998 and 2014. Based on panel data methodology, estimates are made for the full sample, and then for the sample of developing countries. Findings Countries that adopt the IT regime tend to have lower levels of monetary policy interest rates, as well as lower interest rate volatility. The effect of adopting IT on both the level and volatility of the basic interest rate is smaller in developing countries. Besides, countries with more transparent central banks have lower levels of monetary policy interest rates, as well as lower interest rate volatility. In turn, the effect of central bank transparency on both the level and volatility of the basic interest rate is greater in developing countries. Practical implications The study brings important practical implications regarding the influence of both the IT regime and central bank transparency on monetary policy. Originality/value Studies have sought to analyze whether IT and central bank transparency are effective to control inflation. However, few studies analyze the influence of IT and central bank transparency on interest rates. This study differs from the few existing studies since: the analysis is done not only for the effect of transparency on the level of the monetary policy interest rate, but also on its volatility; the central bank transparency index that is used has never been utilized in this sort of analysis; and the study uses panel data methodology, and compares the results between different samples.

Stock Market in Georgia

2021 ◽  
Vol 10 (2) ◽  
pp. 26-38
Author(s):  
Davit (David) Aslanishvili
Keyword(s):  
Stock Market ◽  
Central Bank ◽  
Financial Market ◽  
Commercial Banks ◽  
Financial Capital ◽  
Market Capitalization ◽  
Economic Progress ◽  
Financial Investments ◽  
Economic Reality ◽  
Monopoly Position

The study examines the financial and economic reality and backwardness of Georgia. It reflects the monopoly of commercial banks thanks to the steady support of the state and the central bank, which ultimately does not allow for the attraction of alternative financial capital and is one of the main reasons for the country's failure. In this respect, the economic progress is directly linked to this problem. Developing an economy requires large financial investments and resources. Based on the research a number of proposals need to be introduced to change the situation and to build a competitive financial market. The ultimate goal is to end the monopoly position of commercial banks and to neutralize the negative activity of the Central Bank of Georgia as the regulator of this market. This is the only way to create the independent and competitive source of finance and investment in Georgia. Ultimately, this will increase market capitalization and eliminate the backwardness between Georgia and a number of leading countries in the field of financial market and its infrastructure.

scholarly journals Why is inflation targeting adopted?

2020 ◽  
Vol 12 (1) ◽  
pp. 56
Author(s):  
Yutaka Kurihara
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Central Bank ◽  
Inflation Targeting ◽  
Developed Countries ◽  
The Other ◽  
Other Hand ◽  
Central Bank Credibility

Since the early 1990s, inflation targeting (IT) has been conducted in many countries and the number of the countries has been increasing rapidly. The outcomes of adopting IT has been discussed, however, the incentives of adopting IT is not fully examined. This study focuses on this issue empirically. The results are clearly divided into two types of countries. In developed countries, budget/GDP ratio, central bank credibility, exchange rate stability, and openness of the economy are deterministic elements of adopting IT, however interestingly, inflation itself does not play any roles of adopting IT. On the other hand, only inflation is the deterministic element of adopting IT in developing countries. Other elements, that are deterministic elements in developed countries, do not any effects on introducing IT. Moreover, countries would not like to limit the scope of policies when the economy’s openness is high.

scholarly journals Coordinating expectations through central bank projections

2020 ◽  
Author(s):  
Fatemeh Mokhtarzadeh ◽  
Luba Petersen
Keyword(s):  
Central Bank ◽  
Rational Expectations ◽  
Inflation Targeting ◽  
Aggregate Stability ◽  
Central Banks ◽  
Output Gap ◽  
Forecast Errors ◽  
Market Participants ◽  
Wide Range ◽  
Ex Ante

AbstractCentral banks are increasingly communicating their economic outlook in an effort to manage the public and financial market participants’ expectations. We provide original causal evidence that the information communicated and the assumptions underlying a central bank’s projection can matter for expectation formation and aggregate stability. Using a between-subject design, we systematically vary the central bank’s projected forecasts in an experimental macroeconomy where subjects are incentivized to forecast the output gap and inflation. Without projections, subjects exhibit a wide range of heuristics, with the modal heuristic involving a significant backward-looking component. Ex-Ante Rational dual projections of the output gap and inflation significantly reduce the number of subjects’ using backward-looking heuristics and nudge expectations in the direction of the rational expectations equilibrium. Ex-Ante Rational interest rate projections are cognitively challenging to employ and have limited effects on the distribution of heuristics. Adaptive dual projections generate unintended inflation volatility by inducing boundedly-rational forecasters to employ the projection and model-consistent forecasters to utilize the projection as a proxy for aggregate expectations. All projections reduce output gap disagreement but increase inflation disagreement. Central bank credibility is significantly diminished when the central bank makes larger forecast errors when communicating a relatively more complex projection. Our findings suggest that inflation-targeting central banks should strategically ignore agents’ irrationalities when constructing their projections and communicate easy-to-process information.

scholarly journals Capitalists in the Twenty-First Century*

2019 ◽  
Vol 134 (4) ◽  
pp. 1675-1745 ◽  
Author(s):  
Matthew Smith ◽  
Danny Yagan ◽  
Owen Zidar ◽  
Eric Zwick
Keyword(s):  
Human Capital ◽  
Value Added ◽  
Primary Source ◽  
Premature Death ◽  
Financial Capital ◽  
Capital Growth ◽  
Working Age ◽  
Capital Tax ◽  
Business Profit ◽  
Pass Through

Abstract How important is human capital at the top of the U.S. income distribution? A primary source of top income is private “pass-through” business profit, which can include entrepreneurial labor income for tax reasons. This article asks whether top pass-through profit mostly reflects human capital, defined as all inalienable factors embodied in business owners, rather than financial capital. Tax data linking 11 million firms to their owners show that top pass-through profit accrues to working-age owners of closely held mid-market firms in skill-intensive industries. Pass-through profit falls by three-quarters after owner retirement or premature death. Classifying three-quarters of pass-through profit as human capital income, we find that the typical top earner derives most of her income from human capital, not financial capital. Growth in pass-through profit is explained by both rising productivity and a rising share of value added accruing to owners.

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