scholarly journals CORONAVIRUS, LOCKDOWN, AND ECONOMY

MEST Journal ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 8-14
Author(s):  
Helmuth Gomez ◽  
Gabriela Antosova
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Economic Performance ◽  
Global Economy ◽  
Supply And Demand ◽  
Economic Structure ◽  
Market Mechanism ◽  
Animal Spirits ◽  
Long Run ◽  
The Future

Humanity has faced an unprecedented biological threat that collapsed the global economy and engulfed the animal spirits in a severe wave of pessimism and fear. The measures of policy have combined an expansive monetary policy and an extra fiscal expenditure that was not contemplated in the budgetary planning exercise. The recuperation stage is strongly challenging and requires all efforts of economic policy. The future global economic performance relies on the breaking policy postures that can succeed in realigning the path of growth in the long run. In any case, the destruction in the economic network and employment is so hard to restore that we must avoid the risk is to align the economy in a more stagnant path of growth for the future. The concluding part of the paper states that during the pandemic we saw that the way ahead should not be headed by the market mechanism but instead by an openly interventionist economic policy. In this blatantly ominous stage of the economy, serious doubts emerged about the ability of spontaneous supply and demand forces to recover the economic structure left in shambles by this disruptive shock.

Afterword

Money ◽  
2017 ◽  
Author(s):  
John Kenneth Galbraith ◽  
James K. Galbraith
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Supply And Demand ◽  
Economic Forecasting ◽  
Modern Economy ◽  
The Future ◽  
History Of ◽  
Minor Part ◽  
A Minor ◽  
Current Reality

This chapter argues that the history of money could be better. It suggests that the problem of money is now linked to that of the economy, even with that of the polity, and explains how monetary policy has become but a minor part of the whole economic policy, how economic policy has become an aspect of politics, and how supply and demand in the modern economy are now brought into equilibrium only after significant movements in prices and in income. It also discusses six imperatives that will shape or control monetary policy and the larger economic policy of which it is now a lesser part. Finally, it considers the prospect that policy in the future will be based not on economic forecasting but on the current reality, and insists that inflation and recessions do not last forever.

Capitalism after Satoshi

2019 ◽  
Vol 9 (2) ◽  
pp. 152-164 ◽  
Author(s):  
Chris Berg ◽  
Sinclair Davidson ◽  
Jason Potts
Keyword(s):  
Twentieth Century ◽  
Economic Policy ◽  
Structural Changes ◽  
Economic Structure ◽  
Regulatory State ◽  
Wide Spread ◽  
Role Of Government ◽  
Content Type ◽  
Blockchain Technology ◽  
Long Run

Purpose The purpose of this paper is to explore the long-run economic structure and economic policy consequences of wide-spread blockchain adoption. Design/methodology/approach The approach uses institutional, organisational and evolutionary economic theory to predict consequences of blockchain innovation for economic structure (dehierarchicalisation) and then to further predict the effect of that structural change on the demand for economic policy. Findings The paper makes two key predictions. First, that blockchain adoption will cause both market disintermediation and organisational dehierarchicalisation. And second, that these structural changes will unwind some of the rationale for economic policy developed through the twentieth century that sought to control the effects of market power and organisational hierarchy. Research limitations/implications The core implication that the theoretical prediction made in this paper is that wide-spread blockchain technology adoption could reduce the need for counter-veiling economic policy, and therefore limiting the role of government. Originality/value The paper takes a standard prediction made about blockchain adoption, namely disintermediation (or growth of markets), and extends it to point out that the same effect will occur to organisations. It then notes that much of the rationale for economic policy, and especially industry and regulatory policy through the twentieth century was justified in order to control economic power created by hierarchical organisations. The surprising implication, then, is that blockchain adoption weakens the rationale for such economic policy. This reveals the long-run relationship between digital technological innovation and the regulatory state.

scholarly journals Research on the influence mechanism of China’s industrial circulation on long-term interest rate: Empirical analysis based on VEC model

2021 ◽  
Vol 251 ◽  
pp. 01081
Author(s):  
Qiao Han ◽  
Yang Jiayun
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Empirical Test ◽  
Supply And Demand ◽  
State Space Model ◽  
Real Economy ◽  
Influence Mechanism ◽  
Vec Model ◽  
Long Run

As the adjustment space of China’s monetary policy is gradually expanding and the adjustment intensity is gradually increasing, the influence of external factors on money supply and demand is gradually weakening. The endogenous mechanism of interest rate in the real economy needs to be further explored. Through the long-term interest rate model, the paper reveals the relationship between the circulation status of real economy and long-term interest rate. Based on the monthly data of China from 2003 to 2019, the paper establishes the error-correction VEC model and the state-space model to conduct empirical test and analysis on the influence mechanism of long-term interest rate. The final results show that exogenous factors such as monetary policy have certain influence on interest rate in the short run, while in the long run, interest rate is affected by the average circulation of goods described by the inventory increment of manufacturers and the actual production input of enterprises.

scholarly journals The Fiscal Reaction Function and the Transmission Mechanism for Pakistan

2007 ◽  
Vol 46 (4II) ◽  
pp. 435-447 ◽  
Author(s):  
Mahmood Khalid ◽  
Wasim Shahid Malik ◽  
Abdul Sattar
Keyword(s):  
Monetary Policy ◽  
Side Effects ◽  
Fiscal Policy ◽  
Supply And Demand ◽  
New Keynesian ◽  
Supply Side ◽  
Demand Side ◽  
Long Run ◽  
Short Run ◽  
Macro Variables

Modern macroeconomics literature emphasises both the short run and long run objectives of fiscal policy [Romer (2006)]. In the short run it can be used to counter output cyclicality and/or stabilise volatility in macro variables, which is descriptively same as of effects of the short run monetary policy. Further for the long-run, fiscal policy can also affect both the demand and supply side of the economy. But in most traditional analyses it is assumed that fiscal policy would adjust to ensure the intertemporal budget constraint to be satisfied, while monetary policy is free to adjust its instruments [‘Ricardian Regime’ by Sargent (1982)] such as stock of money supply or the nominal interest rate [Walsh (2003)]. The debt financing methods, expenditure and tax powers of fiscal authorities i.e. the fiscal policy has also been seen as to affect both the supply and demand side of the economy. As noted by Baxter and King (1993), the initial Real Business Cycle models had only the supply side effects of the fiscal policy, where these were transmitted through the wealth effect and labourleisure choices of the household. Recently also New-Keynesian type models with micro-foundations and sticky prices argue that still through the supply side fiscal policy management could be accorded for stabilisation [Linnemann and Schabert (2003)]. The demand side effects of the fiscal policy could also be found only with more imperfections such as ‘Rule of Thumb’ consumers or those with liquidity constraints, which lead to exclusion of Ricardian equivalence [Gali, et al. (2005)]. But all that depends on the structure of the economy, as Blanchard and Perotti (2002) stated:

Einige Anmerkungen zu den Determinanten Wirtschaftlicher Stabilität

1998 ◽  
Vol 47 (1) ◽  
Author(s):  
Hans Peter Grüner
Keyword(s):  
Monetary Policy ◽  
Conflict Resolution ◽  
Social Norms ◽  
Economic Performance ◽  
Institutional Factors ◽  
Economic Stability ◽  
Stability Performance ◽  
The Future ◽  
Recent Debate ◽  
Fiscal And Monetary Policy

AbstractThe term Stabilitätskultur (culture of stability) has gained popularity in the recent debate on the future institutions for fiscal and monetary policy in Europe. Those who use it argue that - besides institutions - social norms and traditional behavior are crucial for a country's economic performance. This paper provides a survey of theoretical explanations for the fact that non-institutional factors determine economic stability. Economic instability is interpreted as the result of inefficient conflict-resolution. I discuss both, institutional and non-institutional explanations of instability and the possibilities to improve an economy’s stability performance.

scholarly journals Threshold Cointegration Approach for Assessing the Impact of US Economic Policy Uncertainty on Monetary Policy Decision of African Countries

2021 ◽  
Vol 68 (4) ◽  
pp. 509-528
Author(s):  
Prince Mensah Osei ◽  
Anokye Adam
Keyword(s):  
South Africa ◽  
Monetary Policy ◽  
Economic Policy ◽  
Policy Uncertainty ◽  
Threshold Cointegration ◽  
African Countries ◽  
Economic Policy Uncertainty ◽  
Long Run ◽  
The Us ◽  
The Impact

This study uses threshold cointegration technique to ascertain the relationship between United States (US) economic policy uncertainty (EPU) and monetary policy rate (MPR) of each of the four African countries, namely Egypt, Ghana, Namibia and South Africa using monthly data from March 1998 to April 2020. The impact of US EPU on MPR of each country is assessed by examining the linear cointegration, asymmetric cointegration and causal relationships in the frequency domain between the US EPU and MPR of each African country. The findings provide evidence of long-run threshold cointegration and the adjustment mechanisms towards long-run equilibrium are asymmetric in the short run for the MPR models for Ghana, Namibia and South Africa in the M-TAR specification except for Egypt’s MPR model which does not provide evidence of asymmetric adjustment towards the equilibrium position. The bivariate analysis performed in the spectral frequency domain suggests unidirectional causality between US EPU and MPR of each country and that, the US EPU influences the MPR of each country in the long run. The findings provide important guidelines to monetary policy reviewers to take policy stance that would stimulate economic growth amid US policy uncertainties.

IMPACT OF COVID-19 ON THE GLOBAL ECONOMY: IS FEAR OF AN INFLATION PANDEMIC JUSTIFIED?

2021 ◽  
Author(s):  
Jasenka Bubić ◽  
Luka Bašić
Keyword(s):  
Global Economy ◽  
Supply And Demand ◽  
Current Situation ◽  
Chinese Economy ◽  
The Real ◽  
Long Run ◽  
The World ◽  
Macroeconomic Indicators ◽  
Economic Imbalances

International economies are fragile and vulnerable to the various volatilities that occur, due to classic economic imbalances caused by financial meltdowns, inflated balloons, or other internal and external macroeconomic shocks, due to unforeseen phenomena in the form of the economic term "black swan". The first focus of the paper was placed on examining the real impact of the virus on key macroeconomic indicators of the global economy and what is the attitude of international politics when it comes to creating a crisis structure. The implementation of the policy seen since the beginning of the 2020 crisis has led to the strengthening of an economic doctrine that is mitigating and out of mind, which has again shown that the world of central banks is easy on the "monetary trigger". The second focus of the work is singled out as a subtheme, where the current situation with China's Evergrande is to be addressed and how much impact the ultimate negative outcome can leave on the current recovery of the world economy. For the past twenty or thirty years, China's economic picture has led it to the world's second strongest economy, thanks precisely to the strong implementation of China's development policy. But rightly the world wonders what the real growth of the Chinese economy is. Labour's third focus has been placed on the issue of inflation as a potentially long-term problem. The implementation of the agreed policy over the last year and a half is a realistic reflection of the current situation with inflation. It is crucial to process whether its sudden jump can be a long-term problem for the entire economic structure of the European and global economies. Whether inflation can be corrected in the long run through the law of supply and demand, as has always been shown so far, needs to be seen.

Between Modernization and Stagnation: Economic Policy in 2012

2013 ◽  
pp. 4-23 ◽  
Author(s):  
V. Mau
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Russian Economic Development ◽  
Structural Transformation ◽  
Economic Performance ◽  
Historical Analysis ◽  
Oil Boom ◽  
The World

The paper deals with the trends in the world and Russian economies towards development of a new post-crisis system, including technological and structural transformation. Three main scenarios of Russian economic development (conservative, innovation and acceleration) are discussed basing on historical analysis of Russian economic performance since 1970-s when oil boom started. On this basis key challenges of economic policy in 2013 are discussed.

The end of Alchemy of Finance and Sovereign Money (on the books by M. King “The end of Alchemy: Money, Banking and the Future of the Global Economy” and by J. Huber “Sovereign Money. Beyond Reserve Banking”)

2017 ◽  
pp. 131-141 ◽  
Author(s):  
V. Yefimov
Keyword(s):  
Economic Policy ◽  
Central Bank ◽  
Institutional Theory ◽  
Money Supply ◽  
Government Spending ◽  
Global Economy ◽  
Private Banks ◽  
Money Creation ◽  
Ministry Of Finance ◽  
Reserve Banking

The review discusses the institutional theory of money considered in the books by King and Huber, and the conclusions that follow from it for economic policy. In accordance with this theory, at present the most of the money supply is created not by the Central Bank but by private banks. When a bank issues a loan, new money is created, and when the loan is repaid this money is destructed. The concept of sovereign money involves the monopoly of money creation of the central bank. In this case the most of newly created money is handed over to the ministry of finance to implement government spending.

Forming Sources of Long-run Growth: How to Understand Them?

2014 ◽  
pp. 4-20 ◽  
Author(s):  
G. Idrisov ◽  
S. Sinelnikov-Murylev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Policy ◽  
Business Cycle ◽  
Capital Markets ◽  
Productivity Growth ◽  
Government Spending ◽  
Long Run ◽  
Accelerate Growth ◽  
Budget Institutions

The paper analyzes the inconsequence and problems of Russian economic policy to accelerate economic growth. The authors consider three components of growth rate (potential, Russian business cycle and world business cycle components) and conclude that in order to pursue an effective economic policy to accelerate growth, it has to be addressed to the potential (long-run) growth component. The main ingredients of this policy are government spending restructuring and budget institutions reform, labor and capital markets reforms, productivity growth.

Sign in / Sign up

Export Citation Format

Share Document