scholarly journals Reputation, credibility and monetary policy effectiveness

2009 ◽  
Vol 39 (3) ◽  
pp. 673-698
Author(s):  
Gabriel Caldas Montes
Keyword(s):  
Monetary Policy ◽  
Economic Performance ◽  
Central Banks ◽  
The State ◽  
Monetary Authority ◽  
Policy Recommendations ◽  
Policy Effectiveness ◽  
Real Activity ◽  
Monetary Policy Effectiveness ◽  
Nominal Variables

As reputation and credibility are important elements for monetary policy effectiveness, the paper aims at exploring the concepts of both and its importance in a context where central banks policies are not neutral, that is, monetary policy affects real and nominal variables. The paper seeks to contribute with a new analysis of how the sort of reputation developed by the monetary authority affects the state of expectations, and then the economic performance, enabling a particular situation that we call "credibility trap" - which makes monetary policy ineffective to affect real activity when necessary. Although the paper presents some similarities to the orthodox approach regarding both reputation and credibility's importance for central banks and its policies, it is different from the orthodox approach speaking of distinct forms of monetary policy recommendations and the sort of reputation that it recommends to be developed.

scholarly journals Competing With Bitcoin - Some Policy Considerations for Issuing Digitalized Legal Tenders

2019 ◽  
Vol 10 (4) ◽  
pp. 1 ◽  
Author(s):  
Arto Kovanen
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
New Technologies ◽  
Central Banks ◽  
Policy Effectiveness ◽  
Rate Transmission ◽  
Key Policy ◽  
Monetary Policy Effectiveness ◽  
Financing Of Terrorism ◽  
The Impact

The proliferation of peer-to-peer virtual alternatives to traditional banknotes has raised concerns among policymakers about the future of traditional means of making payments and how it might affect monetary policy implementation and its effectiveness. This study provides a brief overview of the existing research in this area. It compares positions taken in the literature by authors on some of the key policy issues relevant for central banks when thinking about the issuance of digitalized legal tenders. We examine the implications of government issued digital alternatives to traditional currencies for monetary policy effectiveness, payments and settlements, and financial market stability. We also discuss recent advances in financial technology to improve the making of payments and settlements, which might help contribute to financial inclusion. At the same time, new technologies represent challenges for regulatory authorities, for instance related to efforts to contain anti-money laundering and prevent financing of terrorism. A number of authors argue that government issued digital currency is necessary to address the flaws in private crypto currencies, and to improve monetary policy effectiveness. Central banks have begun to analyze possible features of digitalized legal tenders, to better understand the policy considerations involved and effects these could have for interest rate transmission and financial markets, but there is no clear consensus on key modalities associated with digitalized legal tenders. Moreover, many central banks do not regard privately issued virtual currencies as a serious threat to traditional currencies. Given the ongoing debate, it is difficult to make firm predictions about the impact of central bank issued digital currencies on monetary policy transmission and financial markets at this point.

Reference Rates and Monetary Policy Effectiveness in Korea

2015 ◽  
Author(s):  
Heung Soon Jung ◽  
Dong Jin Lee ◽  
Taehyo Gwon ◽  
Se Jin Yun
Keyword(s):  
Monetary Policy ◽  
Policy Effectiveness ◽  
Monetary Policy Effectiveness

Determinants of Non-Performing Assets of Commercial Banks in India

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Panel Data ◽  
Commercial Banks ◽  
Financial Stability ◽  
Policy Effectiveness ◽  
Credit Growth ◽  
Dynamic Provisioning ◽  
The Past ◽  
Economic Slowdown ◽  
Monetary Policy Effectiveness

Banks’ credit growth continues to decelerate in India due to huge non-performing assets (NPAs) overhangs in banks. Using the panel data methodology, this study empirically analyzed the determinants of NPAs of scheduled commercial banks in India during 2009-2020. Results indicated that the excessive credit growth in the past increased the surge in the current NPAS. The economic slowdown also aggravated loan delinquencies in Indian commercial banks. While higher priority sector lending created higher loan delinquencies, higher banks size and higher profitability reduced it. This study suggested that counter capital buffer, dynamic provisioning and a sound credit appraisal NPA improved the financial stability and monetary policy effectiveness. These findings are useful for policymakers, bankers and other stakeholders to make appropriate strategies to resolve the NPA issue in India.

scholarly journals Monetary policy effectiveness and stock market cycles in ASEAN-5

2014 ◽  
Vol 46 (20) ◽  
pp. 2362-2374 ◽  
Author(s):  
Roohollah Zare ◽  
M. Azali ◽  
M. S. Habibullah ◽  
W. N. W. Azman-Saini
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Policy Effectiveness ◽  
Monetary Policy Effectiveness
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