On the Impact of Policy Uncertainty on the Demand for Money in China: An Asymmetric Analysis

2022 ◽  
pp. 1-11
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Muhammad Aftab
Keyword(s):  
Policy Uncertainty ◽  
Demand For Money ◽  
The Impact

scholarly journals Do Economic Policy Uncertainty and Geopolitical Risk Lead to Environmental Degradation? Evidence from Emerging Economies

2021 ◽  
Vol 13 (11) ◽  
pp. 5866
Author(s):  
Muhammad Khalid Anser ◽  
Qasim Raza Syed ◽  
Hooi Hooi Lean ◽  
Andrew Adewale Alola ◽  
Munir Ahmad
Keyword(s):  
Economic Policy ◽  
Renewable Energy ◽  
Environmental Degradation ◽  
Emerging Economies ◽  
Ecological Footprint ◽  
Policy Implications ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Integration Test ◽  
The Impact

Since the turn of twenty first century, economic policy uncertainty (EPU) and geopolitical risk (GPR) have escalated across the globe. These two factors have both economic and environmental impacts. However, there exists dearth of literature that expounds the impact of EPU and GPR on environmental degradation. This study, therefore, probes the impact of EPU and GPR on ecological footprint (proxy for environmental degradation) in selected emerging economies. Cross-sectional dependence test, slope heterogeneity test, Westerlund co-integration test, fully modified least ordinary least square estimator, dynamic OLS estimator, and augmented mean group estimator are employed to conduct the robust analyses. The findings reveal that EPU and non-renewable energy consumption escalate ecological footprint, whereas GPR and renewable energy plunge ecological footprint. In addition, findings from the causality test reveal both uni-directional and bi-directional causality between a few variables. Based on the findings, we deduce several policy implications to accomplish the sustainable development goals in emerging economies.

The Impact of Policy Uncertainty on Macro Variables – An SVAR-Based Empirical Analysis for EU Countries

2017 ◽  
Vol 68 (2) ◽  
Author(s):  
Dominik Kronen ◽  
Ansgar Belke
Keyword(s):  
Stock Market ◽  
Policy Uncertainty ◽  
Stock Market Volatility ◽  
Market Uncertainty ◽  
Vector Autoregressive ◽  
Svar Model ◽  
Negative Effect ◽  
Macro Variables ◽  
The Impact ◽  
Structural Vector

AbstractIn light of the rising political and economic uncertainty in Europe, we aim to provide a basic understanding of the impact of policy and stock market uncertainty on a set of macroeconomic variables such as production and investment. In this paper, we apply a structural vector autoregressive (SVAR) model to gain first insights that may help to identify avenues for further research. We find that stock market volatility shows a fairly consistently negative effect. However, the implications of policy uncertainty for Europe and the euro area in particular are not so straightforward.

POLICY UNCERTAINTY AND THE DEMAND FOR MONEY IN SINGAPORE: AN ASYMMETRIC ANALYSIS

2021 ◽  
pp. 1-16
Author(s):  
MOHSEN BAHMANI-OSKOOEE ◽  
MUHAMMAD AFTAB ◽  
SAHAR BAHMANI
Keyword(s):  
Money Supply ◽  
Policy Uncertainty ◽  
Demand For Money ◽  
The Public ◽  
Uncertainty Measures ◽  
Long Run ◽  
Almost All ◽  
Measure Of Uncertainty

In search of a stable demand for money, almost all previous studies include two uncertainty measures captured by the volatility of the money supply and output. While in some countries, this yielded a stable demand for money, in some others, it did not. The latter was the case for Singapore. In this paper, we use a relatively more new and comprehensive measure of uncertainty known as policy uncertainty that is a news-based measure, and revisit the demand for money in Singapore. Our approach not only yields a stable demand for money in Singapore, but also reveals that the long-run effects of policy uncertainty on the demand for money are asymmetric. While increased uncertainty induces the public in Singapore to hold more money, decreased uncertainty does not affect.

Economic Policy Uncertainty in the Euro Area: Cross-Country Spillovers and Macroeconomic Impact

2019 ◽  
Vol 239 (5-6) ◽  
pp. 957-981 ◽  
Author(s):  
Volker Clausen ◽  
Alexander Schlösser ◽  
Christopher Thiem
Keyword(s):  
Economic Policy ◽  
Structural Var ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Financial Firms ◽  
Macroeconomic Impact ◽  
Variance Decompositions ◽  
Cross Country ◽  
Uncertainty Indices ◽  
The Impact

Abstract This paper analyzes spillovers and the macroeconomic effects of economic policy uncertainty (EPU) in Europe over the last two decades. Drawing on the newspaper-based uncertainty indices by Baker et al. (2016, Measuring Economic Policy Uncertainty. Quarterly Journal of Economics 131 (4): 1593–1636), we first use the Diebold and Yilmaz (2014 On the Network Topology of Variance Decompositions: Measuring the Connectedness of Financial Firms. Journal of Econometrics 182 (1): 119–134) connectedness index methodology to investigate the static and dynamic patterns of EPU spillovers. We find substantial spillovers across the European countries. Over time, Germany in particular has become increasingly connected to the other economies. In a second step, we investigate the economic impact of EPU shocks using a structural VAR. The detrimental influence of uncertainty turns out to be regime-dependent. We identify a pre-crisis, a crisis and a post-crisis regime, and the effect is only significant in the former two. Finally, the impact of EPU shocks is also heterogeneous across the monetary union’s most important members.

scholarly journals Optimal Combination of Currency Assets and Algorithm Simulation under Exchange Rate Risk

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
Jun Wei
Keyword(s):  
Money Demand ◽  
Dynamic Equilibrium ◽  
Money Market ◽  
Demand Model ◽  
Demand For Money ◽  
Virtual Economy ◽  
The Interest Rate ◽  
Economic Assets ◽  
Social Wealth ◽  
The Impact

The excess money supply did not lead to a rapid rise in the price index, which in turn triggered inflation. In this case, the redetermination of the demand for money is particularly important. At the same time, with the continuous expansion of the capital market and the rapid development of the virtual economy, the virtual economy is gradually deviating from the real economy. When selecting assets, microentities often incorporate virtual economic assets into investment considerations. Therefore, it is necessary to establish a money demand model that considers the impact of virtual economic assets. This paper uses the asset selection of microentities as the microfoundation to establish a money demand model to explain its economic significance. And based on the money demand model established, a dynamic equilibrium model of the money market was established, and the stability of the dynamic equilibrium point of the money market was verified through mathematical deduction. Based on the dynamic equilibrium model of the money market, the impact of money supply was analyzed. In order to verify the correctness of the aforementioned theory, this paper conducts an empirical analysis. Through cointegration analysis and the vector error correction model (VECM model), the correctness and applicability of the established money demand model are verified, and money demand, total social wealth, spreads between expected stock returns and interest rates, and real estate expectations are found. There is a long-term equilibrium relationship between the rate of return and the interest rate. The total amount of social wealth, the expected rate of return on stocks, and the interest rate spread will have an impact on the demand for money in the short term.

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