Fed's rate caution unsettles global markets

2015 ◽  
Keyword(s):  
Monetary Policy ◽  
Emerging Markets ◽  
World Bank ◽  
Financial Institutions ◽  
Central Banks ◽  
External Factors ◽  
Global Markets ◽  
Content Type ◽  
The World Bank ◽  
The World

Significance Her comments followed the Fed's September 17 decision to keep rates unchanged because of concerns about financial turmoil and economic weakness in emerging markets (EMs). The Fed's dovish decision, although defensible given subdued inflationary pressures, illustrates how economic and financial uncertainties in China are influencing global policymaking. Impacts The future conduct of US monetary policy is leading to sharp divisions within global financial institutions. The IMF and the World Bank urge the Fed to stand pat, while the BIS highlights risks of ultra-loose policies. The Fed's reluctance to raise rates and the related volatility impede the exit from unconventional policies of other major central banks. Sentiment towards EMs will also be hit by domestic vulnerabilities which, in some countries, are more important than external factors.

The effect of trade and monetary policy indicators on the development of renewable energy in Latin America

2019 ◽  
Vol 16 (4) ◽  
pp. 337-359 ◽  
Author(s):  
Dina Frutos-Bencze ◽  
Kujtim Avdiu ◽  
Stephan Unger
Keyword(s):  
Principal Component Analysis ◽  
Monetary Policy ◽  
Renewable Energy ◽  
World Bank ◽  
Principal Component ◽  
Foreign Exchange Reserves ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Energy Indicators

Purpose This paper aims to investigate the effect of monetary policy indicators on Latin America’s renewable energy development. The authors conduct several regressions as well as a Principal Component Analysis (PCA) to unveil relationships among possible driving factors among others the current account balance, interest rates, money flow and energy trade balance for Latin America’s energy mix. Design/methodology/approach The analysis was a two-part process. First, the authors used multiple regression to identify if monetary policy affects the development of renewable energy usage at all. To investigate the singular effects of each of the nine macro-economic variables and four energy indicators, collected from the World Bank (2017) database, several regressions were run where the authors regressed each economic indicator on each energy variable. Then, the authors conducted a principal component analysis with all 13 variables. Findings The authors found a significant relationship between the clean energy share and governmental spending boosting GDP as well as a significant relationship between governmental spending and the amount of foreign exchange reserves. Declining net energy imports indicate that countries in Latin America are getting more and more energy autonomous for the price of building up huge amounts of foreign exchange reserves. Research limitations/implications Renewable energy indicators are not always available for all Latin American countries. Data tend to be scattered. However, sources such as the International Renewable Energy Agency and the World Bank database can be complementary. Practical implications The understanding of the effects and impacts of some of the monetary policy related indicators can provide insights for improving renewable energy financing policies. In turn, such policies can have increased influence on renewable energy sustainability and potentially contribute to improving environmental policies. Originality/value The specific impact of the selected variables on renewable energy has not been studied. This study attempts to discern the impact of such variables to understand how they influence the renewable energy mix. The insights can in turn inform and modify existing policies and guidelines as well as advise new policy.

Contraction spells economic doldrums for South Africa

2015 ◽  
Keyword(s):  
South Africa ◽  
Monetary Policy ◽  
World Bank ◽  
Water Insecurity ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Wage Negotiation ◽  
Us Monetary Policy

Significance The World Bank in its August 17 Economic Update warned about the downside risks to South Africa posed by anticipated US monetary policy tightening and cooling Chinese growth, especially given domestic structural weaknesses, including labour unrest, electricity shortages and growing fiscal imbalances. Impacts Future tax increases will probably not include a mining windfall tax, due to government concerns about the sector's future. Water insecurity due to shortages and degraded infrastructure will rise in prominence among the risks concerning companies. Strikes in the gold sector are probable, unless state mediation breaks the current wage negotiation deadlock.

The IMF, its mandate and influence in prevention of financial sector abuse

2016 ◽  
Vol 23 (4) ◽  
pp. 987-1011
Author(s):  
Norman Mugarura
Keyword(s):  
World Bank ◽  
Secondary Data ◽  
Financial Sector ◽  
Data Sources ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Secondary Data Sources ◽  
Work Done ◽  
The Imf

Purpose The purpose of this paper is to articulate the mandate of the International Monetary Fund (IMF) not least in promoting a sound legal regulatory environment for markets to operate globally and its inherent challenges. While acknowledging the plausible work done by the IMF in supporting countries to achieve their macro-economic stability, the paper articulates some of its shortcomings as a global institution. It is evident that the post-war climate in which the World Bank and IMF were created has drastically changed – which presupposes that these institutions now need to reposition themselves to reflect on contemporary global challenges accordingly. The author has argued in the past that a robust regulatory system should be devised taking into account the dynamic challenges in the market environment but also to prevent them from happening again. Design/methodology/approach The paper has utilized empirical evidence to evaluate the mandate of the IMF in addressing its dynamic challenges such as the global financial and debt crises in Europe and the USA and prevention of financial sector abuse globally. The IMF is one of the Bretton Woods Institutions charged with the oversight responsibility to enforce policies and enable countries to manage their macro-economic challenges efficiently. Findings The findings demonstrate that the IMF is as relevant and important as it was when it was created in 1945. However, there is a need for intrinsic and structural changes within this institution to continue discharging its mandate in a changed global regulatory landscape. The IMF is still crucial in fostering a fundamental stabilization function to fragile global economies in areas of financial and technical assistance, and developing requisite legal and supervisory infrastructure within fledging member countries. Research limitations/implications The paper was written by analysis of both theoretical and empirical data largely based on secondary data sources. It would have been better to first present the findings in an international conference to solicit wide views and internalize them accordingly. Practical implications While acknowledging the plausible work done by the IMF and its counterpart the World Bank in facilitating global financial markets regulation and prevention of financial sector abuse, as oversight institutions, they need to constantly review their mandate to respond robustly to their dynamic challenges such as the global and debt crises and financial sector abuse. Oversight institutions need to constantly review and adapt their mandate accordingly, if they are to discharge their varied responsibilities efficiently. They cannot stand still in the face of challenges because they will be superseded and kept at a back foot. Social implications Markets and states are embedded in each other, and the way they are regulated is of a significant importance to varied stakeholders and people. Originality/value This paper is one of its kind, is unique in its character and evaluates embedded issues using empirical evidence in a way not done in its context before. Secondary data sources have been evaluated to achieve a thoughtful analysis of the objectives of the paper.

Major obstacles facing business enterprises in an emerging economy: the case of Ghana using the World Bank Enterprise Survey

2021 ◽  
Vol 28 (3) ◽  
pp. 475-487
Author(s):  
Ibrahim Mohammed ◽  
Alhassan Bunyaminu
Keyword(s):  
World Bank ◽  
Emerging Economy ◽  
Probit Regression ◽  
Cross Sectional ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Business Enterprises ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

PurposeThis paper aims at identifying the major obstacles to business enterprise in an emerging economy and how these obstacles are associated with different characteristics of the enterprises.Design/methodology/approachThe study relied on the World Bank Enterprise Survey data on Ghana and applied binary and ordinal probit regression techniques to estimate the associations between the characteristics of the enterprises and the identified obstacles. Significance testing of the associations is also conducted.FindingsThe five main obstacles perceived by most of the enterprises in the study are access to finance, electricity, access to land, customs and trade regulations and tax rates. These obstacles are associated in different ways to growth rate (high vs low growth), scale (small and medium vs large), age, size of employees, the experience of the top manager and ownership (wholly domestic vs foreign ownership).Research limitations/implicationsAs a cross-sectional study focusing on Ghana, the findings are informative about the major obstacles facing business enterprises in an emerging economy; however, the ecological validity of these findings may be limited to factors specific to Ghana.Originality/valueGiven the representativeness of the Enterprise Survey, policymakers can rely on these findings to formulate useful policies to promote the operations of business enterprises.

East and West will divide over new Bosnian viceroy

2021 ◽  
Keyword(s):  
World Bank ◽  
Common Interest ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
East And West ◽  
Dayton Agreement ◽  
Negative Behaviour ◽  
Roll Out ◽  
The Eu

Significance The summit’s avowed aim was to renew the EU-US ‘Transatlantic partnership’, including committing to upholding the international rules-based order built around the UN. It called for cooperation with Russia in areas of common interest despite its repeated “negative behaviour”. Such strains include Russia’s opposition to appointing a new high representative for Bosnia. Impacts Vucic’s call for regular reports from the high representative recognises his legitimacy while asserting Serbian interest in BiH. Croatian President Zoran Milanovic’s support for the 1995 Dayton agreement weakens outside backing for Bosnian Croat separatism. The World Bank has left its growth forecast for BiH unchanged from January, provided vaccine roll-out accelerates.

Aid Effectiveness

2020 ◽  
pp. 59-76
Author(s):  
Constantine Michalopoulos
Keyword(s):  
World Bank ◽  
Financial Institutions ◽  
Poverty Reduction ◽  
Aid Effectiveness ◽  
Bilateral Aid ◽  
The World Bank ◽  
The World ◽  
Reduction Strategies ◽  
The One ◽  
The Imf

The collaboration the U4 launched at Utstein covered a wide variety of development issues handled by different international institutions. This involved in the first place coordination of their positions at the World Bank and the IMF, and the UN and its funds, programmes, and agencies. The World/Bank IMF were very important both because of the size and extent of their own programmes but also for helping developing countries manage the overall poverty reduction strategies within which all bilateral aid was supposed to fit. Increasing the effectiveness of bilateral aid could only succeed if it were part of a consistent overarching multilateral effort. This chapter starts with a discussion of U4 efforts to ensure that the poverty reduction strategies developed with the help of the World Bank/IMF in connection with debt relief actually reflected developing country priorities. It then moves on to U4’s efforts to improve the effectiveness of UN programmes which tended to be characterized by fragmentation and inefficiencies. The last part addresses the problem of coherence and collaboration between the IMF and the World Bank—the international financial institutions, on the one hand, and the UN and its agencies, on the other.

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