SOME POLICY IMPLICATIONS OF THE MONETARY APPROACH TO BALANCE OF PAYMENTS AND EXCHANGE RATE ANALYSIS

1981 ◽  
Vol 33 (supp) ◽  
pp. 70-84 ◽  
Author(s):  
DAVID LAIDLER
Keyword(s):  
Exchange Rate ◽  
Balance Of Payments ◽  
Policy Implications ◽  
Rate Analysis ◽  
Monetary Approach

PRODUCTION NETWORKS AND THE OPEN MACROECONOMY

2008 ◽  
Vol 53 (03) ◽  
pp. 509-521 ◽  
Author(s):  
SVEN W. ARNDT
Keyword(s):  
Exchange Rate ◽  
Balance Of Payments ◽  
Policy Implications ◽  
Monetary Integration ◽  
Trade Integration ◽  
Production Networks ◽  
Cross Border ◽  
Production Sharing ◽  
Rapid Spread ◽  
Rate Behavior

A key feature of globalization in the current era has been the rapid spread of cross-border production sharing in many regions of the world, including Europe, North America and Asia. The effects of these developments in the context of regional trade integration have been examined in the recent literature. This paper looks at their implications for regional monetary integration and exchange-rate policies. Cross-border production networks and the intra-industry trade associated with them affect exchange-rate behavior, balance of payments adjustment, and the transmission of shocks and disturbances. This paper examines the policy implications of regional production networks that (i) are confined to the countries of a given region, and (ii) involve a dominant extra-regional economy.

scholarly journals Monetary Approach to Nigerian Balance of Payments

2019 ◽  
pp. 1-12
Author(s):  
INIMINO, Edet Etim ◽  
AKPAN, James Essien ◽  
OTUBU, Osaretin Paul ◽  
ALEX, Iriabije O.
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Analytical Techniques ◽  
Exchange Rate Policy ◽  
Balance Of Payments ◽  
Rate Variation ◽  
Long Run ◽  
Monetary Approach ◽  
Broad Objective ◽  
The Impact

The study examined monetary approach to Nigerian balance of payments. Therefore, the broad objective of the study was to examine the impact of monetary policy on balance of payments in Nigeria from 1970 to 2015. The econometrics methods of Co-integration and Error Correction Mechanism were employed as the analytical techniques. The Co-integration result revealed the existence of a long-run relationship among the variables. The result of the parsimonious ECM revealed that exchange rate and credit to private sector have significant impact on balance of payments in Nigeria. While money supply and interest rate do not have significant impact on balance of payments in Nigeria. Moreover, the coefficient of ECM was rightly signed (that is negative) and statistically significant at conventional level. This means that, the short run dynamics adjust to long run equilibrium relationship. Based on these findings, the study recommended that monetary authority should make the financial sector to be viable in order to provide credit at lower interest rates and adopt a managed floating exchange rate policy to redress the problem of exchange rate variation in order to raise the BOPs position of Nigeria.

THE MONETARY APPROACH TO THE BALANCE OF PAYMENTS: AN APPLICATION TO BARBADOS

2002 ◽  
Vol 47 (02) ◽  
pp. 213-228
Author(s):  
MICHAEL HOWARD ◽  
NLANDU MAMINGI
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Small Open Economy ◽  
Balance Of Payments ◽  
Credit Expansion ◽  
Rate System ◽  
Fixed Exchange Rate ◽  
Monetary Approach ◽  
Monetary Authorities ◽  
Exchange Rate System

This paper examines the monetary approach to the balance of payments in Barbados, a small open economy with a fixed exchange rate system. We use an error correction mechanism (ECM) approach which shows that the monetary approach applies to Barbados. Such an ECM approach has not been previously employed in other related studies. Our analysis has implications for monetary policy since it confirms that excessive credit expansion leads to balance of payments deficits in fixed exchange rate systems, and the monetary authorities need to hold high levels of reserves in small open economy systems to protect the exchange rate.

Sign in / Sign up

Export Citation Format

Share Document