scholarly journals Money Supply Model in Muslim Countries

2019 ◽  
Vol 7 (2) ◽  
pp. 233-241
Author(s):  
Nanda Suhanda ◽  
Hamdan Firmansyah
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Precise Determination ◽  
Policy Makers ◽  
Muslim Countries ◽  
Supply Model ◽  
Main Thing ◽  
The Stability ◽  
Value Of Money

Efforts to control economic conditions in a country are called monetary policy. The main thing is to regulate the stability of the value of money and the amount of money circulating in the homeland of each country. This macro policy is expected to be able to respond to micro economic growth so that real economic growth will be realized. The economic success of a country is largely determined by the precise determination of monetary policy. This policy was created in response to the microeconomics which was then managed in a macro manner by policy makers. This policy making step must be in accordance with the sharia scenario so that the economic growth is expected to get a blessing so that falah is the ultimate goal of the economy as well as being realized as the policy is taken. A literature review was finally taken in order to find answers to this essential monetary policy concept. The final goal of the discussion of sharia economic policy is to maintain and maintain the stability of the country's economy.

scholarly journals Regular Econometric Model of Taylor for Albania

2016 ◽  
Vol 5 (1) ◽  
pp. 123
Author(s):  
Ergys Misha
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Financial Stability ◽  
Inflation Targeting ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Central Banks ◽  
Financial Assets

The Taylor’s Rule Central Banks is applying widely today from Central Banks for design the monetary policy and for determination of interest rates. The purpose of this paper is to assess monetary policy rule in Albania, in view of an inflation targeting regime. In the first version of the Model, the Taylor’s Rule assumes that base interest rate of the monetary policy varies depending on the change of (1) the inflation rate and (2) economic growth (Output Gap).Through this paper it is proposed changing the objective of the Bank of Albania by adding a new objective, that of "financial stability", along with the “price stability”. This means that it is necessary to reassess the Taylor’s Rule by modifying it with incorporation of indicators of financial stability. In the case of Albania, we consider that there is no regular market of financial assets in the absence of the Stock Exchange. For this reason, we will rely on the credit developmet - as a way to measure the financial cycle in the economy. In this case, the base rate of monetary policy will be changed throught: (1) Targeting Inflation Rate, (2) Nominal Targeting of Economic Growth, and (3) Targeting the Gap of the Ratio Credit/GDP (mitigating the boom cycle, if the gap is positive, and the contractiocycle if the gap is negative).The research data show that, it is necessary that the Bank of Albania should also include in its objective maintaining the financial stability. In this way, the contribution expected from the inclusion of credit gap indicators in Taylor’s Rule, will be higher and sustainable in time.

scholarly journals Reconstructing the Performance of Pakistan’s Political Economy: Another Paradigm

2011 ◽  
Vol 16 (Special Edition) ◽  
pp. 31-70 ◽  
Author(s):  
Inayat Ullah Mangla
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Monetary Policy ◽  
Institutional Changes ◽  
Policy Makers ◽  
Structural Problems ◽  
Major Factors

This paper looks at the major factors limiting economic growth in Pakistan. The paper then analyzes the structural problems faced by Pakistan today and goes on to discuss the challenges facing monetary policy makers in Pakistan as well as the problem of budget and trade deficits. The paper concludes with a discussion on the key institutional changes needed in Pakistan.

Innovations in human resources management: impact on economic growth

2021 ◽  
Vol 5 (3) ◽  
pp. 53-65
Author(s):  
Monika Danova ◽  
Ivana Kravcakova Vozarova ◽  
Elena Sira
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Economic Performance ◽  
Human Resources Management ◽  
Precise Determination ◽  
P Value ◽  
Strong Impact ◽  
Literary Sources ◽  
The Impact

In recent years, human capital has become increasingly emphasized as a factor of economic growth. Managing human capital could stimulate the whole economy to better performance in competitiveness. Although these indicators include several variables, there is no precise determination of which indicator mostly affects the country's economic growth. This paper summarizes the knowledge and approaches of several authors in the field of economic growth, knowledge economy, competitiveness, innovations and individual elements affecting these areas. It outlines the findings and provides some insight into the impact of individual factors on economic growth across recent studies. The main goal is to obtain information about the impact of education, its support, and its influence on economic performance on the example of empirical data documenting the qualitative parameters of the workforce. The use of selected indicators indicated their impact on the change in economic performance. The partial objective is to identify an indicator or set of indicators that could express the impact of human capital on economic growth. The study involved research methods such as analyzes, statistical methods such as correlation and p-value, and prediction for the next period based on past developments. The research object is the V4 countries – the Czech Republic, Slovakia, Hungary, and Poland. The findings pointed to the strong impact of the analyzed factors on economic growth. Besides, they showed which of the known ways to increase the efficiency of the labor factor were actually or little used in the sample countries. Undoubtedly, there is also an indicative and interesting comparison within a group or with other economies at a comparable economic and social development level. Finally, improvements to the current situation were proposed. The systematization of literary sources and approaches to economic growth helps identify possible proposals for improving competitiveness in the future, using innovative approaches.

Interbank financing and business cycle in Europe

2019 ◽  
Vol 46 (6) ◽  
pp. 1280-1291 ◽  
Author(s):  
Ly Kim Cuong ◽  
Vo Xuan Vinh
Keyword(s):  
Business Cycle ◽  
Banking Sector ◽  
Financial Structure ◽  
Policy Makers ◽  
Content Type ◽  
Level Data ◽  
The Business Cycle ◽  
The Stability ◽  
Liquidity Shock

Purpose The knowledge of the link between interbank financing and business cycle fluctuations is important in assessing the stability and soundness of the banking sector. The purpose of this paper is to investigate the simultaneous relationship between interbank financing and the business cycle with respect to the financial structure of the bank-based and market-based systems in European countries by using bank-level data from 2007 to 2011. Design/methodology/approach The study employs an innovative instrumenting technique with an instrument of the financial structure to address the simultaneous determination of interbank financing and the business cycle. Findings The results suggest that banks establish pro-cyclical interbank borrowing by increasing their interbank position during booms and reducing it during downturns. Bank-based system performs better in redistributing the liquidity in the economy than the market-based system when there are imperfectly correlated liquidity shocks across regions during the 2007–2009 financial crisis. Practical implications The improvement of banks’ liquidity risk management should be aligned with a specific financial system. The macro-prudential supervisor should require banks in the market-based system to disclose their interbank position on the extent of risk exposure during the liquidity shock period to stabilize the EU banking industry. Originality/value This study is the first to provide policy makers with some novel empirical results concerning the linkage among bank liquidity, the macroeconomic condition and financial structure.

scholarly journals Unwinding: A Tale of Corridors and Floors

2017 ◽  
Vol 241 ◽  
pp. R70-R73 ◽  
Author(s):  
Roger E.A. Farmer
Keyword(s):  
Monetary Policy ◽  
Balance Sheet ◽  
Central Banking ◽  
2008 Financial Crisis ◽  
Policy Makers ◽  
Monetary Policy Committee ◽  
The 2008 Financial Crisis ◽  
The Interest Rate ◽  
The Stability ◽  
The Uk

I discuss six tools available to monetary policy makers. Three of these have been used since the inception of central banking. Three are new and were introduced in the aftermath of the 2008 financial crisis. I argue that, when the UK Monetary Policy Committee raises the interest rate, it should maintain a large balance sheet that consists of both risky and safe assets. Further, the Bank should trade the risk composition of its balance sheet to promote the stability of asset prices.

scholarly journals THEORETICAL ASPECTS OF DETERMINING THE VALUE OF MONEY, DEPENDING ON THEIR FORMS IN CIRCULATION

2018 ◽  
pp. 82-94
Author(s):  
Oleksandr DZYUBLYUK
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
National Currency ◽  
Main Task ◽  
Basic Principles ◽  
Theoretical Approaches ◽  
Monetary Unit ◽  
Monetary Relations ◽  
The Stability ◽  
Value Of Money

Introduction. The development of forms of money and the evolution of monetary relations affected the assessment of the value of the monetary unit. The problem of understanding the value of money is also complicated by the fact that value is the reflection of the worth of an object, expressed in money, estimating the value of money itself, which is the basis for the effective organization of monetary relations and commodity exchange. Under such circumstances, the rationale for adequate theoretical approaches to understanding the value of money is one of the important tasks in the process of implementing an effective monetary policy as a means of ensuring macroeconomic equilibrium, low inflation and economic growth. Purposes. The purpose of this article is to substantiate and systematize theoretical views on understanding the value of money in the light of the evolution of their forms in the development of monetary relations and those changes that took place in the basic principles of the organization of the monetary system, as well as the formulation of those recommendations for optimizing the basic principles of monetary policy , which should be aimed at ensuring the stability of monetary circulation and the normal functioning of the national economy. Results. The fundamental theoretical approaches to assessing the value of money in the development of money relations and changes in the forms of money in circulation are analyzed and systematized. The article defines the methodological foundations for understanding the value of money and its change, depending on the internal value of a material substance that serves as a general equivalent in the current historical period. Conclusion. An adequate understanding of the value of money serves as the cornerstone of the formation of the principles of monetary policy in a situation where the emission activity of the central bank and its task of maintaining the stability of the national monetary unit are directly determined by the need to bind the aggregate money supply to the needs of the overturn of goods and services. Awareness of the concepts of the value and price of money allows formulating the factors of influence on the stability of the national currency: 1) the stability of prices for goods, reflecting the correspondence of money supply and commodity turnover; 2) the stability of interest rates as the price of credit, which determines the role of money as a factor of production; 3) stability of the exchange rate reflecting the foreign values of the national currency. The main task of the state in the formulation and implementation of economic policies is to maintain the value of the monetary unit at an unchanged level, which is a key condition for successful economic development and the welfare of society.

scholarly journals Landfill Slope Stability Improvement Incorporating Reinforcements in Reclamation Process Applying Observational Method

2020 ◽  
Vol 10 (5) ◽  
pp. 1572 ◽  
Author(s):  
Eugeniusz Koda ◽  
Agnieszka Kiersnowska ◽  
Jacek Kawalec ◽  
Piotr Osiński
Keyword(s):  
Slope Stability ◽  
Mechanical Performance ◽  
Safety Management ◽  
Precise Determination ◽  
Observational Method ◽  
New Development ◽  
Complex Engineering ◽  
Reclamation Plan ◽  
The Stability

This paper concerns a case study presenting one of the biggest landfills in Poland that required application of complex engineering works to extend the deposing capacity of the structure. The shear strength parameters of the subsoil and waste material used for analyses were based on geotechnical investigation and were then applied in slope stability analyses of the landfill. For the purpose of safety management of the new development and reclamation plan for the landfill, an observational method was applied to increase the geotechnical safety of the structure. The slope reinforcement methods mainly included the geogrid, geocomposite, and berms construction. However, much of the uncertainty associated with the stability of the geogrid-reinforced slope is related to the time-dependent deformation of geosynthetic materials. For the purpose of changes in the geogrid parameters with time, the samples were excavated from the landfill slope after 20 years of exploitation and analyzed in the laboratory. The tests allowed precise determination of the material properties, changing geometry, and mechanical properties like tensile strength and strain. Obtained results were compared to parameters of the brand-new geogrid samples. The tests indicated only insignificant changes in geosynthetics, physical, or mechanical performance properties, and the slope has not been compromised in its stability or performance.

scholarly journals KEBIJAKAN MONETER DALAM PERSPEKTIF EKONOMI ISLAM

2021 ◽  
Author(s):  
Ray Dwiki Syahputra
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Economic Perspective ◽  
Economic Sectors ◽  
Islamic Perspective ◽  
Islamic Economic ◽  
The Stability

The development of the rate of economic growth in a region can be said to be the economic growth that is formed through various types of economic sectors that occur indirectly which describes the occurrence of levels of economic growth. in order to achieve high but stable economic growth, monetary policy is needed. The objective of monetary policy is to achieve and maintain the stability of the rupiah value. This objective is as stated in Law no. 23 of 1999 concerning Bank Indonesia, as amended by Law no. 3 of 2004 and Law no. 6 of 2009 in article 7. The purpose of this journal is to know monetary policy from an Islamic perspective. This is interesting to discuss because there are fundamental differences between modern monetary policy and monetary policy in an Islamic economic perspective.

scholarly journals Overview of Forecasting Zakat Collection in Indonesia Using Multiplicative Decomposition

2017 ◽  
Vol 2 (1) ◽  
pp. 45-59
Author(s):  
Salman Al Parisi
Keyword(s):  
Economic Growth ◽  
Historical Data ◽  
Poverty Eradication ◽  
Multiplicative Decomposition ◽  
Policy Makers ◽  
Mean Absolute Percent Error ◽  
Muslim Countries ◽  
Forecasting Method ◽  
Absolute Percent Error ◽  
Over Time

Social welfare can be achieved if high economic growth can reduce a country’s poverty, accompanied by a decrease in the value of gini coefficient. Zakat is one of the primary instruments of economic philanthropy in Muslim countries, faciliatating redistribution of wealth and income. Zakat potential in Indonesia has reached Rp 286 trillion, but the actual zakat collection only reached 3.7 trillion in 2015. This study aims to determine the following: (1) the forecasting of zakat collection in Indonesia based on the historical data for the next 5– 10 years or over time and (2) the system used by Muslim countries to collect zakat fund. This study used the multiplicative decomposition forecasting method with annually data collected over 2005-2015. The findings showed that zakat collection would be expected to reach about Rp 5.0 trillion in 2020. It is expected to increase to 8.33 trillion in 2029, with mean absolute percent error (MAPE) value as much as 0.18. Furthermore, there are different kinds of zakat systems used by Muslim countries. Indonesia uses the voluntary zakat system, which could affect the amount of zakat collection. The findings of this study are expected to inform policy makers regarding the management of zakat collection. Keywords: Forecasting, Zakat Collection, Poverty Eradication, Multiplicative Decomposition

INVESTMENT CREDIT ANALYSIS BY ECONOMIC SECTOR IN INDONESIA

2021 ◽  
Vol 9 (1) ◽  
pp. 1-10
Author(s):  
Ardi Afrizal ◽  
Nurdin Nurdin ◽  
Abd Halim
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Economic Sector ◽  
Simple Linear Regression ◽  
Formal Employment ◽  
Research Findings ◽  
The Government ◽  
The Stability ◽  
Credit Analysis

The purpose of this study is to analyze investment credit by economic sector in Indonesia through a simple linear regression model through the Least Squares (NLS and ARMA) approach. The findings show that the effect of interest rates on investment credit is not significant 0.334 with a R2 value of 1.06%. Meanwhile, the effect of inflation on investment credit is very significant 0.0021 with R2 of 10.31 %%. Then for the effect of investment credit on economic growth is not significant 0.654 or with an R2 value of 0.0023. Meanwhile, the effect of investment credit on formal employment is very significant 0.0033 with a R2 value of 9.5%. The results of the research findings recommend an evaluation of monetary policy carried out by the government, especially the stability of interest rates on investment credit and economic growth in Indonesia.

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