Poor outlook drives fiscal expansion in Argentina

2016 ◽  
Keyword(s):  
Economic Policy ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Investment ◽  
Content Type ◽  
Foreign Companies ◽  
Policy Measures ◽  
The Government ◽  
Nominal Anchor

Significance Soon after taking office, President Mauricio Macri announced a "rain of new investments" from foreign companies attracted by the business-friendly tone set by his administration. Despite key economic policy measures, such as the removal of foreign exchange controls, the unfreezing of utilities tariffs and the agreement with holdout creditors, there have been no signs of significant medium- or long-term foreign investment inflows, raising doubts over Macri's promise of an economic rebound in the second half. Impacts Expansionary measures will make it harder to achieve fiscal goals, especially as tax collection is rising at rates well below inflation. While the downturn may ease inflation, the temptation to use the exchange rate as a nominal anchor would worsen competitiveness problems. The government faces a difficult dilemma: expansionary measures will help it in mid-term elections, but delay economic stabilisation.

Argentine elections will drive monetary expansion

2015 ◽  
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Policy Framework ◽  
Close Monitoring ◽  
Exchange Market ◽  
Content Type ◽  
Official Exchange Rate ◽  
The Government ◽  
Nominal Anchor ◽  
Monetary Policy Framework

Subject The Central Bank's 2015 monetary programme. Significance The Central Bank's (BCRA) 2015 monetary programme indicates that the main features of the current monetary policy framework -- characterised by an expansionary bias, foreign exchange controls and close monitoring of the informal exchange market -- will continue this year. Impacts The government will prioritise exchange rate stability, at the expense of economic activity. The BCRA will continue using the official exchange rate as a nominal anchor. Foreign exchange controls may be extended to discourage devaluation expectations and to protect international reserves.

Growth prospects, market challenges and policy measures: evolution of mobile broadband in Pakistan

2018 ◽  
Vol 20 (1) ◽  
pp. 42-61 ◽  
Author(s):  
Muhammad Shehzad Hanif ◽  
Shao Yunfei ◽  
Muhammad Imran Hanif
Keyword(s):  
Developing Country ◽  
Service Providers ◽  
Supply And Demand ◽  
Economic Benefits ◽  
Content Type ◽  
Mobile Broadband ◽  
Broadband Service ◽  
Policy Measures ◽  
The Government

Purpose The paper aims to explore the long-term prospects of mobile broadband adoption in a developing country. The supply-side and demand-side policy measures are recommended to counter the challenges to broadband adoption. Design/methodology/approach Methodologically, this study uses document analysis to explain secondary data including growth statistics, trade literature and previous scholarly research. Based on the growth statistics of broadband and the informed market insights, the research discusses the prevailing market threats and recommends counter measures to improve the long-term prospects of broadband propagation. Findings The growth of mobile broadband is settling down in Pakistan due to various barriers like cost, literacy, security and unavailability of local content. Collaborative efforts are required by the government, the service providers and the people to enhance the adoption of broadband service and secure economic benefits of the broadband. Practical implications The research offers useful implications for managers and policymakers in Asian and African developing countries; the policy measures discussed here may serve as guidelines for them in the design of their own policies regarding broadband supply and demand. Originality/value The study makes an effort to examine the broadband growth in a developing country on the basis of both quantitative and qualitative aspects. The research endeavors to fill the gap on the particular scholarship of research covering potential uptake of broadband services and the effects of constraining elements to broadband adoption in a developing country.

Mexico’s orthodox budget will face pressures

2018 ◽  
Keyword(s):  
Economic Policy ◽  
Risk Perceptions ◽  
Country Risk ◽  
Content Type ◽  
Investor Confidence ◽  
Investment Projects ◽  
Policy Measures ◽  
Refinancing Costs

Significance Mexico’s new government submitted its 2019 economic package to Congress on December 15, including the budget and revenue legislation, and macroeconomic assumptions and projections. Aggregate figures show no departure from the fiscal orthodoxy of recent decades. The proposed spending reshuffle is nevertheless significant, involving ambitious projects that may bring undue fiscal pressures. Impacts AMLO will pursue new investment projects and social programmes as soon as possible. Further jolts to investor confidence would increase country risk perceptions, pushing up debt refinancing costs. Additional economic policy measures seeking to boost long-term growth are likely in 2019.

Iran may abandon austerity to pacify protesters

2018 ◽  
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Foreign Investment ◽  
Status Quo ◽  
Small Scale ◽  
Economic Policies ◽  
Content Type ◽  
The Poor ◽  
The Status ◽  
The Government

Significance Beginning in the conservative city of Mashhad, the mostly small-scale and leaderless demonstrations spread across many provincial towns over several days, sometimes turning violent. Following the publication of President Hassan Rouhani’s proposed 2018/19 ‘austerity’ budget, key slogans protested government corruption and neglect of the poor and unemployed -- although the basis of the regime itself also came under fire. Impacts US support for the protesters and announcement of new sanctions will assist Tehran’s efforts to portray recent events as foreign ‘sedition’. Inflation could spike on the back of populist economic policies and exchange rate deterioration as foreign investment prospects recede. The central bank will not implement exchange rate unification plans, since the government profits from the status quo.

Herrera will maintain Mexico’s economic policy

2019 ◽  
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Interest Rates ◽  
Content Type ◽  
High Profile ◽  
The Government ◽  
Undue Pressure

Significance Urzua’s abrupt departure is the most high-profile that AMLO has experienced in his seven months in office. Impacts The peso will be volatile for some time but a tight monetary policy should avert any long-term depreciation due to Urzua’s resignation. His resignation deprives the government of an individual trusted by the markets to contain the government’s most statist members. Herrera is known to favour lower interest rates, but there is no expectation that he will put undue pressure on the Bank of Mexico.

Sisi seeks Egyptian economic takeoff in his next term

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Foreign Investment ◽  
Capital Inflows ◽  
Foreign Exchange Reserves ◽  
Content Type ◽  
Preliminary Results ◽  
The Government ◽  
External Borrowing

Significance Preliminary results suggest that President Abdel Fattah el-Sisi has won re-election with 91% of the vote. Western media and diplomats estimate turnout hovered around 20%, though Egyptian site Youm7 reported yesterday that 23 million of 59 million eligible voters cast their ballot, bringing turnout to 39%. After the formality of his re-election for a second term is completed, Sisi is looking to his cabinet to set the conditions for a surge in economic growth over the next four years. Impacts Further cuts to subsidies are in the pipeline; inflation and interest rates remain high, although they have passed their peaks. Foreign exchange reserves are at record levels, but increased borrowing made a major contribution, and heavy debt repayments are now due. The government seeks more foreign investment in projects and equities to replace external borrowing as the main source of capital inflows.

India will attract more foreign investment

2021 ◽  
Keyword(s):  
Foreign Investment ◽  
Foreign Capital ◽  
Trade Deficit ◽  
Content Type ◽  
Self Reliance ◽  
The Government ◽  
Business Relations

Significance FDI reached USD40bn in April-September 2020, a 13% rise compared with the corresponding period in 2019. FPI totalled nearly USD23bn in 2020, up 58% from 2019. Impacts Privatisation of several state-owned enterprises will help attract more foreign capital in the long term. The trade deficit will decrease as the government increasingly promotes self-reliance and moves to reduce Chinese imports. India-China business relations will worsen as border tensions between the strategic rivals endure.

Using system dynamics to evaluate renewable electricity development in Malaysia

Kybernetes ◽  
2014 ◽  
Vol 43 (1) ◽  
pp. 24-39 ◽  
Author(s):  
Salman Ahmad ◽  
Razman bin Mat Tahar
Keyword(s):  
System Dynamics ◽  
Fossil Fuels ◽  
Systems Approach ◽  
Capacity Expansion ◽  
Assessment Model ◽  
Flow Diagram ◽  
Content Type ◽  
The Government ◽  
Policy Targets

Purpose – The purpose of this paper is to provide an assessment of Malaysia's renewable capacity target. Malaysia relies heavily on fossil fuels for electricity generation. To diversify the fuel-mix, a technology-specific target has been set by the government in 2010. Considering the complexity in generation expansion, there is a dire need for an assessment model that can evaluate policy in a feedback fashion. The study also aims to expand policy evaluation literature in electricity domain by taking a dynamic systems approach. Design/methodology/approach – System dynamics modelling and simulation approach is used in this study. The model variables, selected from literature, are constituted into casual loop diagram. Later, a stock and flow diagram is developed by integrating planning, construction, operation, and decision making sub-models. The dynamic interactions between the sub-sectors are analysed based on the short-, medium- and long-term policy targets. Findings – Annual capacity constructions fail to achieve short-, medium- and long-term targets. However, the difference in operational capacity and medium- and long-term target are small. In terms of technology, solar photovoltaic (PV) attains the highest level of capacity followed by biomass. Research limitations/implications – While financial calculations are crucial for capacity expansion decisions, currently they are not being modelled; this study primarily focuses on system delays and exogenous components only. Practical implications – A useful model that offers regulators and investors insights on system characteristics and policy targets simultaneously. Originality/value – This paper provides a model for evaluating policy for renewable capacity expansion development in a dynamic context, for Malaysia.

South African government’s GBV plans may disappoint

2021 ◽  
Keyword(s):  
Civil Society ◽  
Private Sector ◽  
South African ◽  
Foreign Investment ◽  
Gender Based Violence ◽  
Content Type ◽  
Management Structure ◽  
National Strategic Plan ◽  
The Government ◽  
Gender Based

Significance Although President Cyril Ramaphosa has publicly committed to increase funding to combat what he calls South Africa’s “second pandemic”, there is a lack of transparency in how the government disburses funds linked to its National Strategic Plan (NSP) on Gender-based Violence and Femicide. Impacts Civil society groups will increase pressure on the government to make expenditure on GBV programmes more transparent. A new private-sector fund to contribute to the NSP has received strong early support, but its management structure is opaque. High levels of GBV will not only have significant humanitarian and social costs but may deter much-needed foreign investment.

Foreign Exchange Policies of PRC: Historical Aspect

2014 ◽  
pp. 24-31
Author(s):  
A. Binder ◽  
A. Kononov
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Perspective Taking ◽  
Historical Perspective ◽  
Chinese Economy ◽  
Historical Aspect ◽  
Distinctive Features ◽  
The World ◽  
Exchange Policy

The article analyzes the distinctive features of the PRC foreign exchange policy from the historical perspective, taking the national color into account and emphasizing the traditions-modernity unity in its strategy. It reviews the debates over renminbi exchange rate, disclosing the weakness of the modern international foreign exchange law. It systemizes the practices of international pressures applied to China in this aspect. It is stated, that China’s foreign exchange reforming process is of a long-term nature, and it will be completed only by the time the Chinese economy gets adjusted to the world market’s requirements.

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