scholarly journals Real Sector Business Outlook and the Effectiveness of Monetary Policy on the Real Sector in Nigeria

2021 ◽  
Vol 665 (1) ◽  
pp. 012055
Author(s):  
Ebenezer O. Oladimeji ◽  
Ebenezer K. Bowale ◽  
Henry Okodua
Keyword(s):  
Monetary Policy ◽  
Real Sector ◽  
The Real ◽  
Effectiveness Of Monetary Policy

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

scholarly journals The Monetary Policy in Indonesia: in the Perspective of Islamic Economics

2017 ◽  
Vol 5 (1) ◽  
pp. 59-74
Author(s):  
Iwan Wisandani ◽  
Sri Iswati ◽  
Rifki Ismal
Keyword(s):  
Monetary Policy ◽  
Comparative Study ◽  
Research Result ◽  
Transmission Model ◽  
Observational Result ◽  
Real Sector ◽  
The Real ◽  
Literary Research

The writing is based on my concern on the monetary policy in Indonesia which is not fully in accordance with the Islamic teaching. Among all, the monetary policy doesn’t pay attention to the real sector. It can be seen from the sectorial dichotomy between the real and monetary sectors whereas in Islamic economics, monetary policy is only a representative of the real sector. The paper is a literary research with the approach of comparative study between Islamic monetary policy and the monetary policy employed in Indonesia. The research result is a composition of a transmission model from the perspective of Islamic economics which is based on BI Return (sharing) by creating a diagram and then explaining some thoughts of Muslim and western economists such as Stieglitz to create a monetary policy which gets along with the real sector. The model is an observational result to the monetary condition in Indonesia which is then compared to Islamic monetary thought. This model will gain good result when all transmissions of monetary policy are applied effectively.

scholarly journals Monetary Policy and the Real Economy: A Study of the Manufacturing and Services Sectors in Nigeria

2019 ◽  
pp. 1-13
Author(s):  
Olumuyiwa Olamade
Keyword(s):  
Monetary Policy ◽  
Value Added ◽  
Annual Data ◽  
Real Sector ◽  
Real Economy ◽  
The Real ◽  
Development Indicators ◽  
Distributed Lag ◽  
Domestic Credit ◽  
Effect Of Monetary Policy

This study examined the effect of monetary policy on the real sector of the Nigerian economy. A model was specified for each of the manufacturing and services sectors to interrogate the effect of monetary policy on the real sector. Annual data were sourced from the World Development Indicators for 1981 to 2017. Preliminary tests of the time series properties suggested the autoregressive distributed lag (ARDL) regression as the most appropriate framework for the achievement of our objectives. Diagnostic tests of the distribution of regression errors confirmed the satisfaction of all necessary regression assumptions. The models were also found stable over the study period. Thus, the models adequately represented the problems formulated for investigation and good for valid inference. While all the four channels of monetary transmission considered were found significant for value-added expansion in manufacturing, the exchange rate channel was not a significant factor in value-added change in the services sector. Our findings suggested that domestic credit is the dominant channel for the transmission of monetary impulses to the real sector. The study concluded that monetary policy will benefit the real economy more with export expansion in both the manufacturing and services sectors.

Monetary Policy and Commercial Bank Lending to the Real Sector in Nigeria: A Time Series Study

2018 ◽  
Vol 2 (1) ◽  
pp. 10-41
Author(s):  
Ogolo . ◽  
Tamunotonye Magnus
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Commercial Banks ◽  
Bank Lending ◽  
Real Sector ◽  
Treasury Bill ◽  
The Real ◽  
Negative Effect

This study empirically examined the effects of monetary policy on commercial banks lending to the real sector from 1981 – 2014. The objective was to examine the effectiveness of monetary policy in channeling bank credit to the real sector. Annual time series data were sourced from Central Bank of Nigeria statistical bulletin. Two multiple regression models were specifically estimated with the aid of Software Package for Social Sciences. The study modeled commercial banks credit to agricultural and manufacturing sector as the function of interest rate, monetary policy rate, treasury bill rate, exchange rate, broad money supply and liquidity ratio. The result shows collinearity that corresponds with the Eigen value condition index, and variance constant are less than the required value. The Durbin Watson statistics shows the absence of multiple auto correlation and negative autocorrelation, while the variance inflation factors indicate the absence of auto-correlation. The regression results from model one found that interest rate, monetary policy rate have positive relationship with commercial banks lending to the agricultural sector while Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on the dependent variable. Model two found that interest rate, Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on commercial banks lending the manufacturing sector while monetary policy rate have positive relationship with the dependent variable. We recommend that monetary policy should be harmonize with bank lending objectives to enhance commercial banks lending to the real sector of the economy and that management of commercial banks should formulate policies of managing the negative effect of monetary policy variables on its lending.

scholarly journals How Effective Is the Monetary Policy on the Real Sector in Nigeria?

2020 ◽  
Vol 11 (5) ◽  
pp. 388
Author(s):  
Ebenezer O. Oladimeji ◽  
Ebenezer Bowale ◽  
Henry Okodua
Keyword(s):  
Monetary Policy ◽  
Credit Risk ◽  
Banking System ◽  
Public Intellectual ◽  
Monetary Authority ◽  
Real Sector ◽  
The Real ◽  
Transmission Channels ◽  
Area Of Interest ◽  
The Government

In the past few years, the real sector became an area of interest in scholarly and public intellectual discuss, towards a sustainable performance of the Nigerian economy. Successive governments also realized the need to diversify the economy from high dependence on oil into deepening the real sector, through monetary policy that allows more credit flow to the real sector. In a quest to reconcile the current state of the Nigerian real sector with the renewed efforts of the government and the monetary authority to revamp the sector, this study investigated the effectiveness of this process and reexamined the transmission channels, using a structural vector autoregressive econometric approach (SVAR). The results showed that the credit channel and asset price channel are the dominant monetary policy transmission channels to the real sector. However, there was a significant effect on the effectiveness of the transmission process, when credit risk was added to the model, as it revealed vital information about the behaviour of the banking system in response to monetary policy actions of the monetary authority, during the period of high credit risk/default risk. This study, therefore, recommends that monetary authorities should always consider the credit preference of the banking system and the order of transmission channels, before embarking on any monetary policy aimed at stimulating the real sector and other sectors of the economy.

scholarly journals Features of modern monetary policy of the bank of Russia

2019 ◽  
pp. 113-117 ◽  
Author(s):  
A. V. Berdyshev
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Price Stability ◽  
Real Sector ◽  
The Real ◽  
National Production

By the analysis of offi documents of the Bank of Russia, the features of modern monetary policy have been determined. It has been shown that in the context of a controversial decision on the Bank of Russia refusing to conduct currency interventions during the transition to the inflation targeting mode, as well as its focus on price stability, the monetary policy can`t be recognized as eff ctive because of its insubordination the goal to develop national production through increased lending to the real sector.

Russian Monetary Policy: Work on the Bugs

2015 ◽  
pp. 136-151 ◽  
Author(s):  
A. Apokin ◽  
D. Galimov ◽  
I. Goloshchapova ◽  
V. Salnikov ◽  
O. Solntsev
Keyword(s):  
Monetary Policy ◽  
Economic Analysis ◽  
Banking System ◽  
Real Sector ◽  
The Real ◽  
Policy Work ◽  
Policy Measures

This paper reviews the consequences of monetary policy tightening by the Bank of Russia in 2014 for Russian ecomony in general, banking system and the real sector. Based on official statements, the new implied monetary policy principles for 2015 are outlined. The paper also proposes several policy measures to overcome the credit shock caused in part by over-tightening of monetary policy in 2014. It relies on Bank of Russia Monetary Policy reports and the article of Bank of Russia experts (Badasen et al., 2015) to illustrate the approach to economic analysis that led to a monetary policy-induced credit shock.

scholarly journals FEATURES AND PROBLEMS OF MONETARY REGULATION IN RUSSIA

2019 ◽  
pp. 170-175
Author(s):  
A. Berdyshev
Keyword(s):  
Monetary Policy ◽  
Price Stability ◽  
Necessary Condition ◽  
Real Sector ◽  
Development Potential ◽  
The Real ◽  
National Production ◽  
Stability Limits

Based on the analysis of the particularities of the monetary policy of the Bank of Russia in the period 2000-2018, an assessment of its effectiveness has been carried out and the main problems in the sphere of monetary regulation have been identified. It has been determined, that the Bank of Russia focuses solely on ensuring price stability, limits the availability of credit for enterprises in the real sector of the economy, which significantly reduces their development potential. It has been shown, that under the conditions of unjustified monetary policy rigidity, the efficiency of the banking system’s function of transforming savings into investments is reduced. Thus, the easing of the monetary policy by the Bank of Russia is considered as a necessary condition for the development of national production.

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