scholarly journals The Effectiveness and Sustainability of the Sterilization Policy in China

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Chien-Ping Chung ◽  
Jen-Te Hwang ◽  
Chieh-Hsuan Wang
Keyword(s):  
Monetary Policy ◽  
Capital Mobility ◽  
Housing Price ◽  
Monetary Authority ◽  
Capital Inflows ◽  
International Capital ◽  
Foreign Exchange Reserves ◽  
Monetary Authorities ◽  
The Status ◽  
Almost All

The aim of this paper is to examine the sterilization policy in China. First, several indices are used to measure the status of China’s markets and to determine effectiveness and sustainability of the sterilization policy and the possible impacts it may have induced. Second, within a microeconomic framework, we incorporate the housing price variable into the target loss function of the monetary authority to explore its financial capabilities and evaluate the effectiveness and sustainability of China’s sterilization policy. The empirical results show that Chinese monetary authorities sterilize almost all of the effects of international capital inflows and increase foreign exchange reserves on the monetary base. That is, increased capital mobility does not sabotage the independence of the Chinese monetary policy. Nevertheless, analyses of the sustainability of sterilization policy indicate that the sustainability of the monetary sterilization policy has been seriously challenged since March 2008, which suggests that Chinese monetary authority has endured tremendous pressure for unsustainable sterilization.

MÜASİR ŞƏRAİTDƏ AZƏRBAYCANIN VALYUTA SİYASƏTİNİN TƏKMİLLƏŞDİRİLMƏSİ VƏZİFƏLƏRİ VƏ İSTİQAMƏTLƏRİ

2020 ◽  
Vol 54 (05) ◽  
pp. 122-125
Author(s):  
Kamil Sayavush Demirli ◽  
Keyword(s):  
Monetary Policy ◽  
Key Words ◽  
Foreign Exchange ◽  
Oil And Gas ◽  
Balance Of Payments ◽  
International Capital ◽  
Foreign Exchange Reserves ◽  
Commodity Trade ◽  
Transit Service ◽  
Gas Balance

Key words: monetary policy, commodity trade foreign exchange reserves, balance of payments, oil and gas, balance, transportation, transit service, international, capital, perspective

Capital Mobility, Consumption Substitutability and the Effects of Monetary Policy in Open Economies

2005 ◽  
Vol 6 (1) ◽  
pp. 79-94 ◽  
Author(s):  
Christian Pierdzioch
Keyword(s):  
Monetary Policy ◽  
General Equilibrium ◽  
Open Economy ◽  
Capital Mobility ◽  
International Capital ◽  
International Capital Mobility ◽  
Short Run ◽  
Cross Country ◽  
Optimizing Model ◽  
The Impact

Abstract I use a dynamic general equilibrium two-country optimizing model to analyze the implications of international capital mobility for the short-run effects of monetary policy in an open economy. The model implies that the substitutability of goods produced in different countries plays a central role for the impact of changes in the degree of international capital mobility on the effects of monetary policy. Paralleling the results of the traditional Mundell-Fleming model, a higher degree of international capital mobility magnifies the short-run output effects of monetary policy only if the Marshall-Lerner condition, which is linked to the cross-country substitutability of goods, holds.

scholarly journals Managing Foreign Exchange Inflows: An Analysis of Sterilisation in Pakistan

2005 ◽  
Vol 44 (4II) ◽  
pp. 777-792
Author(s):  
Asad Jan ◽  
Ather Elahi ◽  
M. A. Zahid
Keyword(s):  
Foreign Exchange ◽  
Capital Inflows ◽  
Exchange Market ◽  
Foreign Exchange Reserves ◽  
Local Currency ◽  
Monetary Authorities ◽  
Export Competitiveness ◽  
Capital Outflows ◽  
Trade And Exchange

A number of developing countries from Asia, Latin America and Eastern Europe have experienced surge in capital inflows during recent years.1 These inflows have potential effects on macroeconomic stability; export competitiveness, and inflation. If not properly managed, these inflows can induce appreciation of local currency leading to serious repercussions for the rest of the economy. Under these conditions, the proactive role of monetary authorities in the management of capital inflows was highly desirable, wherein they intervened in the domestic exchange market in order to contain volatility in exchange rate besides accumulation of foreign exchange reserves. The main instruments available to deal with the possible effects of large capital inflows include sterilised intervention, fiscal tightening, trade and exchange liberalisation including easing controls on capital outflows. The foreign exchange interventions are typically accompanied by active sterilisation policy to keep inflation under control.

scholarly journals The Making of Contemporary Australian Monetary Policy - Backward- or Forward- Looking?

2018 ◽  
Vol 10 (6) ◽  
pp. 127
Author(s):  
Ying Chen ◽  
Hanyang Zhang ◽  
Kwok-Leung Tam ◽  
Maoguo Wu
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Monetary Authority ◽  
Financial Deregulation ◽  
Body Of Knowledge ◽  
Reserve Bank ◽  
Monetary Authorities ◽  
Simple Rules ◽  
Insight Into ◽  
Forward Looking

Monetary authorities rarely disclose the true reasons behind their policy reactions. A tracing of the policy reaction function to see if the monetary authority is applying simple rules holds the potential to offer profound insight into the past behavioral relationship between the monetary authority and economic agencies. A reasonable body of knowledge about the direction of monetary policy would, moreover, assist economic agencies in forming their expectations, which would in turn, be useful for the monetary authority in anticipating the likely trends of the overall economy. The main objective of this study is to track de Brouwer and Gilbert (2005) from the Australian financial deregulation era (from 1983 to 2002) to the present. Empirical findings show that the Reserve Bank of Australia (RBA) is more forward-looking when formulating monetary policy rather than backward-looking, and that inflation targeting plays a significant role in stabilizing the output of the economy.

On Practical Validity of Quantity Theory of Money, or How Much the Dogmatism of Monetary Authorities Costs

2008 ◽  
pp. 31-45 ◽  
Author(s):  
S. Glazyev
Keyword(s):  
Monetary Policy ◽  
Economic Development ◽  
Money Supply ◽  
Market Equilibrium ◽  
Static State ◽  
Quantity Theory ◽  
Monetary Authorities ◽  
State Of The Economy ◽  
Market Organization

The article critically considers basic postulates of quantity theory of money. It shows that they reflect the static state of the economy in abstract models of market equilibrium but do not prove true in actual economic processes. In contrast to monetarists’ view, prices can rise as well as fall even if other variables of the monetarist equation are stable. Thus it cannot be used for grounding monetary policy. The author comes to the conclusion on the dogmatism of Russian monetary authorities that seriously hinders the country’s economic development. He proposes to switch to market organization of money supply basing on regulation of the refinancing rate.

Contemporary Qur'anic Studies in Iran and its Relationship with Qur'anic Studies in the West

2012 ◽  
Vol 14 (1) ◽  
pp. 45-72
Author(s):  
Morteza Karimi-Nia
Keyword(s):  
Islamic Law ◽  
Human Sciences ◽  
The West ◽  
Communications Technologies ◽  
Religious Learning ◽  
The Status ◽  
Islamic Republic Of Iran ◽  
Almost All ◽  
The Impact ◽  
The Relationship

The status of tafsīr and Qur'anic studies in the Islamic Republic of Iran has changed significantly during recent decades. The essay provides an overview of the state of Qur'anic studies in Iran today, aiming to examine the extent of the impact of studies by Western scholars on Iranian academic circles during the last three decades and the relationship between them. As in most Islamic countries, the major bulk of academic activity in Iran in this field used to be undertaken by the traditional ʿulamāʾ; however, since the beginning of the twentieth century and the establishment of universities and other academic institutions in the Islamic world, there has been increasing diversity and development. After the Islamic Revolution, many gradual changes in the structure and approach of centres of religious learning and universities have occurred. Contemporary advancements in modern sciences and communications technologies have gradually brought the institutions engaged in the study of human sciences to confront the new context. As a result, the traditional Shīʿī centres of learning, which until 50 years ago devoted themselves exclusively to the study of Islamic law and jurisprudence, today pay attention to the teaching of foreign languages, Qur'anic sciences and exegesis, including Western studies about the Qur'an, to a certain extent, and recognise the importance of almost all of the human sciences of the West.

Sign in / Sign up

Export Citation Format

Share Document