Active fiscal policy and macroeconomic stability

2016 ◽  
Vol 43 (5) ◽  
pp. 749-762
Author(s):  
Cleiton Silva de Jesus ◽  
Fernando Motta Correia
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Dynamic Equilibrium ◽  
Content Type ◽  
Policy Regimes ◽  
Theoretical Contribution ◽  
Monetary Regime ◽  
Linear Differential ◽  
Macroeconomic Implications

Purpose The purpose of this paper is to investigate whether fiscal policy may be a complementary instrument to monetary policy in the macrostabilization process. Design/methodology/approach The authors developed a dynamic system with two linear differential equations in order to verify if an active fiscal policy can be compatible with macroeconomic equilibrium in three monetary policy regimes (conservative, alternative and hybrid). The authors also use numerical simulations because it is impossible to extract analytically full conclusions from the theoretical model. Findings The results suggest that fiscal policy can be a useful tool for macroeconomic stabilization; the counter-cyclical role of fiscal policy is compatible with dynamic equilibrium only if the monetary authority is not lenient towards inflation; and under an active fiscal policy a hybrid monetary regime is preferable to a conservative one. Originality/value This paper offers a theoretical contribution to explicate the macroeconomic implications of fiscal policy.

Internal projects as strategic tools: an organisation-level perspective and a research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Torbjørn Bjorvatn
Keyword(s):  
Project Management ◽  
Theory Development ◽  
Future Research ◽  
Content Type ◽  
Theoretical Contribution ◽  
Research Areas ◽  
Linear Relationships ◽  
Strategic Role ◽  
And Performance

PurposeThe purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.Design/methodology/approachTheory development with an emphasis on explaining key constructs and their mutual relationships. The theoretical contribution is represented in a diagram along with a detailed verbal account.FindingsThe paper develops a dynamic, cross-level framework to illustrate the organisational processes and outcomes that determine project-based strategy implementation within a single organisation. The interplay between the base organisation and the project, and benefits realisation were singled out as key future research areas. The proposed framework engages with central discourses in the fields of project management, strategic management, innovation studies, knowledge management and organisation studies.Research limitations/implicationsOnly the contours of an organisation-level theory of strategically motivated internal projects are outlined. Future research must elaborate on the complexities, the non-linear relationships and the boundary conditions that follow from the proposed framework.Practical implicationsManagers are alerted to the strategic role of internal projects, how these projects help connect strategy and performance and what the accompanying organisational processes and outcomes look like.Originality/valueThe paper constitutes an early conceptual treatment of strategy-driven internal projects as a distinct project category, thus addressing a major knowledge gap in project studies. Organisational project-management theory is extended with suggestions for future research.

Sukuk and monetary policy transmission in Indonesia: the role of asset price and exchange rate channels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suriani Suriani ◽  
M. Shabri Abd. Majid ◽  
Raja Masbar ◽  
Nazaruddin A. Wahid ◽  
Abdul Ghafar Ismail
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rates ◽  
Asset Price ◽  
Transmission Mechanism ◽  
Monetary Policy Transmission ◽  
Content Type ◽  
Policy Transmission ◽  
Monetary Policy Transmission Mechanism

Purpose The purpose of this study is to empirically analyze the role of sukuk in the monetary policy transmission mechanism through the asset price and exchange rate channels in the Indonesian economy. Design/methodology/approach Using the monthly data from January 2003 to November 2017, this study uses a multivariate vector error correction model causality framework. To examine the role of sukuk in the monetary policy transmission mechanism through the asset price channel, this study uses the variables of consumption, inflation, interest rates, economic growth and the composite stock price index. Meanwhile, to examine the role of sukuk in the monetary policy transmission mechanism through the exchange rate channel, this study used variables of inflation, interest rates, economic growth, foreign investment and exchange rate. Findings This study documented that sukuk has no causal relationship with inflation through asset price and exchange rate channels. Nevertheless, sukuk has a bidirectional causal relationship with economic growth through asset price and exchange rate channels. Sukuk is also documented to have a causal relationship with monetary policy variables of interest rate and stock prices through asset price and exchange rate channels. Finally, a unidirectional causality is recorded running from the exchange rate to sukuk in the exchange rate channel. Research limitations/implications The finding of independence of the sukuk market from interest rates provides evidence that the trading of the sukuk in Indonesia has been in harmony with the Islamic tenets. Practical implications The relevant Indonesian authorities need to enhance both domestic and global sukuk markets as part of efforts to promote the sustainability of Islamic capital market development in Indonesia. Originality/value To the best of the authors’ knowledge, this study is among the first attempts to empirically investigate the role of sukuk in monetary policy transmission through asset price and exchange rate channels in the context of the Indonesian economy.

Investigation of communication in budgetary accountability routines

2020 ◽  
Vol 17 (3) ◽  
pp. 321-344
Author(s):  
Jean-Claude Mutiganda ◽  
Giuseppe Grossi ◽  
Lars Hassel
Keyword(s):  
Design Methodology ◽  
Communicative Action ◽  
Mutual Understanding ◽  
Content Type ◽  
Theoretical Contribution ◽  
Hierarchical Levels ◽  
Communicative Process ◽  
Practical Implications ◽  
Repeated Contact

Purpose This paper aims to analyse the role of communication in shaping the mechanisms of accountability routines. Design/methodology/approach Conceptual elements of the theory of communicative action and the literature on routines were used to conduct a field study in two hospital districts in Finland, from 2009 to 2015. Data were based on interviews, document analysis, observed meetings and repeated contact with key informants. Findings The findings explain how accountability routines take different forms – weak or strong – in different organisations and at different hierarchical levels. Differences depend on the generative structures and mechanisms of the communicative process – relational and normative – used to give and ask information to and from organisation members involved in accountability relationships. An explorative finding is that discourse-based communication plays an important role in bridging the gap between weak and strong accountability routines. The main theoretical contribution is to conceptualise and show the role of communicative rationalities in shaping the mechanisms of accountability routines. Practical implications The implication for practitioners and policymakers is to show to what extent the organisation policies and communicative rationalities used in accountability have potential to improve or not to improve the practices of accountability routines. Mutual understanding, motivation and capacity of organisation members to do as expected and agreed upon without pressure improve accountability routines. Originality/value The value of this study is to explain how accountability routines take different forms in practice (weak or strong) in different organisations and at different hierarchical levels, depending on the generative structures of the communicative process used in practicing accountability routines.

Reversing the lens

2019 ◽  
Vol 41 (1) ◽  
pp. 1-18
Author(s):  
Sajjad Nawaz Khan ◽  
Siti Mariam Abdullah ◽  
Abdul Halim Busari ◽  
Muhammad Mubushar ◽  
Ikram Ullah Khan
Keyword(s):  
Transformational Leadership ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Strong Relationship ◽  
Intellectual Stimulation ◽  
Cultural Backgrounds ◽  
Content Type ◽  
Theoretical Contribution ◽  
Idealized Influence

Purpose The purpose of this paper is to investigate the role of followership dimensions in the transformational leadership process by reversing the lens from the traditional leader-centric perspective to emerging followership perspective and examine the role of trust as a mediating variable in the proposed relationship. Design/methodology/approach Using quantitative method data were collected through a questionnaire from 506 respondents of the telecom sector in Pakistan. The proposed hypotheses were tested using SPSS V.23 and PROCESS V.3.1. Findings The results indicate that followership dimensions (active engagement and independent critical thinking) positively affect all the four constructs of transformational leadership (idealized influence, inspirational motivation, intellectual stimulation and individualized consideration). Furthermore, trust in leadership partially mediates the direct relationship between followership dimensions and transformational leadership constructs. Research limitations/implications This study is conducted in a developing country context which limits its generalizability in other cultural backgrounds. Hence, further investigation could test the role of followership using different samples and methods. Practical implications Organizations need to pay more attention to followers’ development to produce better followership outcomes that will ultimately help establish strong relationships with transformational leaders and sustained positive outcomes. Originality/value This study empirically tests Shamir’s (2007) “reversing the lens” perspective and extends a distinct theoretical contribution to the social exchange theory that neither followers are passive participants, nor always on the receiving end of the relationship but they actively participate to establish a strong relationship with their leaders.

Qard-al-Hasan-based monetary policy and the role of the central bank as the lender of last resort

2020 ◽  
Vol 11 (2) ◽  
pp. 326-345 ◽  
Author(s):  
Mohammad Selim ◽  
M. Kabir Hassan
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Design Methodology ◽  
Equal Opportunities ◽  
Lender Of Last Resort ◽  
Content Type ◽  
Playing Field ◽  
Fair Competition ◽  
Real Gdp

Purpose This paper aims to examine how a central bank (CB) can act as a lender of last resort (LOLR) for both Islamic and conventional interest-based banks by pursuing a Qard-al-Hasan (QH)-based monetary policy (MP). Design/methodology/approach The role of the CB as LOLR under QH-based MP and its effects on major macroeconomic variables, including deposits, loan creation and aggregate expenditures, are examined on theoretical grounds by using the aggregate output and aggregate expenditure model under the framework of Islamic MP. Findings When the CB acts as LOLR by pursuing QH-based MP, it automatically empowers Islamic banks (IBs) by providing access to borrowing funds from the CB on a QH basis. As a result, IBs will not be required to hold billions of dollars as liquid assets against liquidity risks. Thus, the lending capacity of IBs will increase and deposit expansion, loan creation and aggregate expenditures in the economy will all expand. This will in turn increase real GDP and employment while reducing the unemployment rate. Originality/value This is the first paper to analyze CBs acting as LOLR for both IBs and conventional interest-based banks by pursuing a QH-based MP, thus providing equal opportunities and equal access to borrowing facilities from the CB, along with equal partnership and fair competition for all and absolutely no discrimination to anyone. The LOLR service to all banks under QH-based MP will unveil a new horizon of opportunities where all financial institutions are expected to thrive. IBs will escape the constraints of the constant fear of liquidity risks and find a level-playing field.

Are functional, emotional and social values interrelated? A study of traditional guesthouses in Iran

2020 ◽  
Vol 32 (9) ◽  
pp. 2857-2880 ◽  
Author(s):  
S. Mostafa Rasoolimanesh ◽  
Mohmmad Iranmanesh ◽  
Muslim Amin ◽  
Kashif Hussain ◽  
Mastura Jaafar ◽  
...  
Keyword(s):  
Structural Equation ◽  
Social Values ◽  
Perceived Value ◽  
Social Value ◽  
Equation Modeling ◽  
Content Type ◽  
Theoretical Contribution ◽  
Emotional Value ◽  
Moderating Role

Purpose This study aims to examine the interrelationships between the dimensions of perceived value, including functional, emotional and social values. The mediating role of emotional value between functional and social values and satisfaction have been hypothesized and tested. In addition, this study examines the moderating role of social value for the effect of emotional value on satisfaction. Design/methodology/approach Data for this study were collected from guests staying at two traditional guesthouses in Kashan, Iran. The authors applied partial least squares structural equation modeling to analyze 316 questionnaires completed by participants and for hypotheses testing. Findings The authors found positive and direct effects of all dimensions of perceived value on satisfaction. Moreover, the results indicated positive and significant indirect effects for functional and social values on satisfaction through emotional value. The findings demonstrated positive and strong effects of functional and social values on emotional value. The results do not support a moderating role for social value on the relationship between emotional value and satisfaction. In addition, the findings showed a strong and positive effect for satisfaction on revisit intentions. Originality/value This study makes a unique theoretical contribution to the perceived value literature by investigating the interrelationships between dimensions of perceived value. Moreover, this study explores several practical implications of these findings.

Prospects for emerging economies to end-2019

2019 ◽  
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Emerging Markets ◽  
Trade Policy ◽  
Emerging Economies ◽  
World Trade ◽  
Gdp Growth ◽  
Content Type ◽  
Us Trade Policy ◽  
Policy Shift

Subject Prospects for emerging economies to end-2019. Significance US trade policy is hardening and while the direction remains uncertain, a sustained softening seems unlikely. Monetary policy is shifting towards easing in many emerging markets (EMs) and some are expanding fiscal policy. However, the policy shift will not compensate for weaker world trade and EM GDP growth is expected to slow from 4.5% last year, already a three-year low, to closer to the 4.3% seen in 2015 or even weaker.

scholarly journals Fiscal policy under alternative monetary policy regimes

2013 ◽  
Vol 9 (2) ◽  
pp. 1-9
Author(s):  
Carmen Diaz-Roldan ◽  
Carmelo Monteagudo-Cuerva
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Policy Regimes

Russian budget constraints will force hard choices

2016 ◽  
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Political Elite ◽  
The Political ◽  
Budget Management ◽  
Policy Effectiveness ◽  
Content Type ◽  
Monetary Policy Effectiveness ◽  
Will Force ◽  
Regional Budgets

Subject Policy differences reflected in Russian budget debate Significance Budget management has grown into an acute problem for Russian policymakers. The immediate difficulty is how to finance this year's deficit with as little inflationary impact as possible. The problem over the next three years will be to win elite support for a tough fiscal stance. Officials have proposed tighter budgets in 2017-19 in nominal as well as real terms. Impacts The CBR will continue to complain that uncertainty on fiscal policy restricts its monetary policy effectiveness. Privatisations to plug budget gaps will be controversial among the political elite. Cuts in federal transfers to regional budgets will be contentious.

Market nerves roil Turkey and Central Europe

2016 ◽  
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Markets ◽  
Central Europe ◽  
Euro Area ◽  
Inflection Point ◽  
Oil Prices ◽  
Oil Price ◽  
Content Type ◽  
Policy Guidance

Significance Markets have taken badly the Fed's more hawkish policy guidance for 2017, not expecting such a shift in monetary policy so soon. The shift in US monetary policy comes just as the ECB is preparing the ground for the gradual withdrawal of monetary stimulus. While Turkish assets are the most vulnerable partly because of the severe escalation in political risk, the Polish zloty is also at risk thanks mainly to its status as one of the most liquid EM currencies. Impacts Investors see global financial markets at an inflection point as monetary policy gives way to fiscal policy as the main source of stimulus. This monetary-to-fiscal shift will fuel uncertainty about the direction of asset prices. Rising oil prices will allay concerns about deflation in the euro-area. As major Emerging Europe currencies suffer, the ruble is rising against the dollar amid oil price rises and Trump’s Russia-friendly remarks.

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