scholarly journals The Effect of Global Financial Crisis and Ethiopian Monetary Policy Measures: Review on the pre-and post-crisis scenario

2021 ◽  
Vol 15 (3) ◽  
pp. 17-35
Author(s):  
Adisu Fanta Bate
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
African Countries ◽  
Mortgage Loans ◽  
Average Growth ◽  
The World ◽  
Policy Measures ◽  
The Government

Policymakers and leaders usually fail to grasp a sound lesson from the eco- nomic hurdles and crises countries face. This paper, thus, is intended to review and articulate the causes and effects of the global financial crisis, and how the Ethiopian monetary policy reacted and mitigated the crisis. The data for the analysis were collected from various sources including IMF, World Bank, National Bank of Ethiopia, and research articles from 2003 to 2019. The review reveals that even during the crisis in 2009, Ethiopia was among the top five fastest-growing countries in the world by an average of 10.5%, which is twice the average growth of Sub-Sahara African countries (5 %). It had become the seventh-largest economy in Africa and the 69th in the world with a GDP PPP of 118.2$ Billion as of 2013. Some of the main reasons for the con- tinued growth of the country amid crisis could be the desynchronization of the country’s financial market with the international financial market, an insig- nificant share of mortgage loans in domestic financial sector services, and high-level government-led infrastructure investment coupled with China’s economic alliance. However, the significant effect of the crisis was observed in the country’s exports, remittance, and Foreign Direct Investment (FDI). To shun the related inflationary effect, the government increased the minimum deposit interest rate, reserve, and liquidity requirements, and reinstated the credit restrictions. Also, the immediate alert was given to commercial banks to give proper attention in managing credit risk and reducing non-performing loans to below 5% and overdraft facilities. Given the above-mentioned facts, the monetary policy measures were effective to stabilize the economy & sus- tain the growth. In the end, the offshoots & setbacks of the unsynchronized financial market, government-led investment & fettered mortgage loans are addressed, and the way forward is marked out.

Fiscal and Monetary Policies in Reaction to the Financial Tsunami by the Taiwanese Government

2011 ◽  
Vol 14 (01) ◽  
pp. 153-169 ◽  
Author(s):  
Hsiao-Yin Chen ◽  
Cheng-Few Lee ◽  
Tzu Tai ◽  
Kehluh Wang
Keyword(s):  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
The United States ◽  
Insurance Companies ◽  
Monetary Policies ◽  
Policy Measures ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Taiwanese Government

The main purpose of this paper is to investigate the impact of the 2007 financial tsunami on the Taiwanese financial market. We find that, although significant for banks, security firms, and insurance companies, the effect was relatively lower if compared with that in Europe and the United States. In addition, we present fiscal and monetary policies issued by the Taiwanese government in reaction to the global financial crisis. These policy measures focused on stabilizing the financial market, reducing the level of unemployment, and creating more lending opportunities in support of Taiwanese companies. We also discuss the policy measures of the US government and other Asian countries in relation to the global financial crisis. Finally, we provide some suggestions to improve financial supervision and enhance financial reforms in Taiwan.

SOFT MONETARY CENTRAL BANKING POLICY AND A PLAN FOR RESPONSIBLE DEVELOPMENT AS MAIN INSTRUMENTS OF THE IN-TERRENISTIST POLICY FOR ACTIVITY OF GROWTH IN GOSPEL IN POLAND

2018 ◽  
Vol 4 (2) ◽  
pp. 303-337
Author(s):  
Dariusz Prokopowicz
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Central Banking ◽  
Global Market ◽  
The Government ◽  
Business Entities ◽  
Polish Economy

At the beginning of the 1990s, due to the commercialization and privatization of many business entities, the processes of economic globalization of the Polish economy, including transformed financial markets, were intensifying. This globalization is determined by the increasing links between the Polish economy and the economic environment of other countries. These processes indicate that the economic crisis in the Eurozone has been seriously sought for several years, but the negative effects of the slowdown in economic development in some countries have remained. The development of the market financial system in Poland, which has been ongoing since the 1990s, has been slowed down when, since autumn 2008, the echoes of the global financial crisis have begun to enter the global market. In highly developed countries since the beginning of the financial crisis in 2008, the governments of individual countries in consultation with central banks undertook various anti-crisis measures and support for national banking systems. Also in this respect, one can notice many analogies in the relation of the economic situation of national economies, economic policy, including monetary policy and the state of the banking system. These analogies are observed when both developed and developing countries are taken within the comparative analysis. Due to the favorable situation in the Eurozone during the recent years, and the continuation of key aspects of economic growth there are rather positive scenarios for the development of the macroeconomic situation in Poland prevailing among economists. In Poland, since 2015, interventionist monetary policy has been supported by the proeconomic plans of the Plan for Responsible Development developed in the Ministry of Development. This plan, also known as Prime Minister Mateusz Morawiecki's plan, is a key solution that brings together many of the goals and tasks currently implemented by the government of the socio-economic policy called Economy Plus.

scholarly journals INTRODUCTION OF FINTECH COMPANIES AND THEIR IMPACT ON THE FINANCIAL MARKET

2020 ◽  
Vol 8 (6) ◽  
pp. 157-159
Author(s):  
E. Galchenkova ◽  
P. Chupsa
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Rapid Development ◽  
Policy Instruments ◽  
Urgent Problem ◽  
The Past ◽  
The Global Financial Crisis ◽  
Financial Technology

Over the past decade, financial technology has shown rapid development. There was a lot of discussion about what constitutes the field of financial technology and whether such technologies can replace the traditional financial market in the future. The global financial crisis of 2008 showed that the classic monetary policy instruments are not effective. Due to the fact that financial technologies are developing rapidly, the number of relevant and modern research on this topic is limited. So, the study of this issue is an urgent problem.

scholarly journals How effective have measures by Central Banks been in mitigating the impact of financial crisis

2021 ◽  
Vol 4 (2) ◽  
pp. 76-87
Author(s):  
Ibrahim Rimintsiwa
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Complex Form ◽  
Central Banks ◽  
Important Lesson ◽  
Area Of Interest ◽  
Policy Measures ◽  
The Impact

During the global financial crisis, central banks around the globe implemented a series of unconventional monetary policy measures such as quantitative easing among others to avert the impact of financial crisis on financial system. There exist numerous studies on this area of interest, with each guided by a specific view of the problem and selectively chosen empirical observations with regard to the different developments. This paper reviewed literature to ascertain the effectiveness of conventional monetary policy measures and unconventional monetary measures used in mitigating the impact of the 2007/2008 global financial crisis, specifically by the major central banks including the Federal Reserve, European Central Bank and Bank of England. The study used systematic quantitative assessment technique (SQAT) to determine a high quality of papers that have been reviewed in the study. The result proved that conventional monetary policy measures are still potent to deliver their desired objectives but inadequate in times of acute crisis. Empirical evidences proved that central banks have not practically abandoned the core elements of their pre-crisis monetary policy. Through a complex form of strengthening and reassessment, they have instead complimented, extended and somewhat improved their measures to mitigate the impact of the financial crisis. An important lesson of the crisis is that there is opportunity to reinforce central banks with macro prudential supervision and regulation. This should be seen as complementary to the existing monetary policy measure in order to deliver the twin objectives of price and financial stability.

scholarly journals Innovation system fetures of Iceland

2019 ◽  
pp. 44-54
Author(s):  
I.S. Balanchuk
Keyword(s):  
Financial Crisis ◽  
Structural Changes ◽  
Global Financial Crisis ◽  
Renewable Energy Sources ◽  
Innovation System ◽  
The State ◽  
Modern World ◽  
Negative Consequences ◽  
The World ◽  
The Government

The global financial crisis has put the question to practically all countries of the world to take on the inevitable changes and take the negative consequences of the financial downturn, or to accept new revolutionary changes in all sectors of the economy and become modern competitive states, able to withstand the challenges of the modern world. Some countries have left everything as it is, others have tried to adapt to the new situation. One of these countries is Iceland. The state began structural changes many decades ago, but the crisis events of 2008 somehow accelerated this process. The post-crisis plan for the country’s exit from the financial crisis and the recovery of the economy at pre-crisis positions was adopted; subsequently, the targets were adjusted improvement of pre-crisis indicators. The essence of the plan was to make full use of the country’s natural resources for the benefit of the state, namely: tourism, geothermal energy, the fishing industry, as well as biotechnology and pharmaceuticals were to become the basic “pillars” on which the national economy was based. An intelligent approach along with original ideas has brought its positive results: over the years Iceland has become one of the leaders in Europe for a number of indicators, namely: annual tourist flow, production and export of fish, use of renewable energy sources for their own needs, life expectancy, etc. In 2018, the government of Iceland created a new state development plan aimed at consolidating the results of previous years and improving individual indicators. It was decided to pay more attention to the latest innovation processes both in the state and in the world as a whole, as well as the development and support of innovative enterprises to update all components of the Icelandic economic system. Judging by the pace of development shown by this northern country, the results from the implementation of the points of the new plan will be more than positive

scholarly journals EFFECTS OF THE GLOBAL FINANCIAL CRISIS IN THE BANKING SYSTEM OF KOSOVO

2012 ◽  
Vol 2 (2) ◽  
pp. 30-38
Author(s):  
Myrvete Badivuku-Pantina ◽  
◽  
Anera Alishani ◽  
Keyword(s):  
Financial Crisis ◽  
Stock Prices ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Banking System ◽  
Mortgage Market ◽  
Western Balkans ◽  
The World ◽  
The Government ◽  
The Global Financial Crisis

Financial crises are phenomena that happened before and continue to happen even nowadays. There were many financial crises in the last century, starting with the Great Depression of 1929 and continuing with other financial crisis, and it was believed that people would learn from their previous experiences and would not allow the crisis to happen again. But the financial crisis of 2007, created the impression that no one wanted to learn for the real causes of their occurrence and consequences, often disastrous for countries and the globe, and as such allowed the crisis to be repeated. Effects of the 2007 financial crisis, which originally started in the USA’s mortgage market and which was quickly spread all over the world, even to this date it still continues to have effect on real economies of many states, e.g. Greece. The spread of the crisis was primarily due to globalization and commercial trades among countries. Because of the dependence of economies on one another it was created the domino effect and all the countries were affected from the crisis. As a result, the crisis seems to have revealed the disadvantages of globalization. Finances of the world were shocked and rapid fluctuations were reflected in the stock prices. Kosovo, as a new and small country in the Western Balkans is not much globalized and open which was beneficial in preventing it from being affected from the global financial crisis. Its economy has slightly felt the effect of the crisis because the banking system in Kosovo is not much open to the international financial markets as they operate mostly with their clients’ deposits. The purpose of this research is to assess the implications of the global financial crisis in the banking system of Kosovo, and also to identify the measures that the Central Bank and the Government should undertake in order to protect the economy from external implications.

Monetary Policy and Global Financial Crisis: Methodological Aspects and Lessons for Russia

2008 ◽  
pp. 38-50 ◽  
Author(s):  
S. Andryushin ◽  
V. Burlachkov
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Central Banking ◽  
Integral Approach ◽  
Real Economy ◽  
Monetary Authorities ◽  
Methodological Aspects

The article develops the integral approach to formulating and realizing modern monetary policy which is capable to replace the traditional one, characterized as fragmental and non-systematic. Global financial crisis has revealed the absence of sufficient instruments of monetary policy and led to transformation of central banking functions. Monetary authorities are now not just lenders of last resort, but actually sponsors of financial market of last resort. The efficiency of monetary policy in future must be formed by its integrity (interactions of its objects) and close connections with real economy as well.

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

Overcoming Stereotypes

2008 ◽  
pp. 110-120 ◽  
Author(s):  
A. Yakovlev
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Pragmatic Approach ◽  
Economic Problems ◽  
Conventional View ◽  
The Government ◽  
High Uncertainty

Using the data of SU-HSU enterprises surveys and internal statistics of KPMG company the paper provides a non-conventional view on three economic problems which have recently been in the center of expert discussions in Russia: competitiveness of firms, corruption in the government and level of taxation. The paper argues the necessity of pragmatic approach to economic phenomena, especially under conditions of high uncertainty caused by the increasing global financial crisis.

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