The Efficacy of Nigeria Monetary Policy: A Comparative Analysis

<em>This study assesses the efficacy of the Nigeria’s monetary policy against the backdrop of single digit inflation monetary policy target of the regulatory authorities. Two related questions were constructed to guide the study. Relying on both the Keynesian and Structuralist analyses, data were harvested on inflationary performance for 24 years on Nigeria economy from the World Bank data base and assessed it against achievement of the targeted single digit inflation. Thereafter Nigeria inflationary performance was compared with that of South Africa another leading African economy. It was realized that inflationary pressure on the South African economy was lower than that of Nigeria, even when both countries faced high inflation episodes during the early decade of 1990s. Findings which confirm the structuralist’s argument revealed that factors beyond the purview of monetary policy constrained the realization of single digit inflation. These include the existence of various and uncontrolled sources of liquidity in the country, government fiscal operation, which include financing of deficit budget and monetization of deficits, the existence of large informal credit markets, among others. Based on this, we recommend for concerted improvement of public infrastructure, the perfection of cashless economy programme, effective prosecution of war against corruption, and the creation of a single treasury account to help close leakages especially those linked to revenue accruable to government through MDAs and remittance to States and MDAs, among others.</em>

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Angola mounting debt burden raises future default risk

Emerald Expert Briefings ◽

10.1108/oxan-db258931 ◽

2021 ◽

Keyword(s):

World Bank ◽

Default Risk ◽

Content Type ◽

Currency Depreciation ◽

Debt Burden ◽

The World Bank ◽

High Inflation ◽

African Development Bank ◽

Central Bank Autonomy ◽

Domestic Banks

Significance The IMF's willingness to turn a blind eye may enable Angola to retain access to concessional finance over the next 18 months; however, Luanda needs a plan to address deferred principal payments and recapitalise a key escrow account in 2023. Impacts The IMF's latest funding review will unlock USD500mn from the World Bank and USD200mn from the African Development Bank. Persistent IMF pressure for greater central bank autonomy will help curb inflation, which recently reached 25%, pending new legislation. Domestic banks remain vulnerable to economic shocks amid a lengthy recession, persistent high inflation and continued currency depreciation.

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Economic gloom portends instability in Zimbabwe

Emerald Expert Briefings ◽

10.1108/oxan-db212393 ◽

2016 ◽

Keyword(s):

South African ◽

World Bank ◽

Driving Force ◽

Security Forces ◽

Content Type ◽

Regional Market ◽

The World Bank ◽

The World ◽

The Government ◽

South African Rand

Significance Mawarire is the founder of the 'This Flag' movement, which has been a driving force behind a wave of demonstrations and strikes earlier this month against graft, unemployment and economic mismanagement by President Robert Mugabe's government. Impacts Import bans will adversely affect South African exporters, for whom Zimbabwe is a key regional market. Use of the South African rand in Zimbabwe will remain unpopular, due to concerns about its weakness against the dollar. The government will prioritise cash for paying the salaries of the security forces, since these underpin the regime's survival. Loans from the African Export-Import Bank will help Harare to begin paying the World Bank some of its arrears.

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Poll will pose short-term hurdle for Zambia's IMF deal

Emerald Expert Briefings ◽

10.1108/oxan-db211712 ◽

2016 ◽

Keyword(s):

World Bank ◽

Commodity Prices ◽

Tax Rates ◽

Short Term ◽

Content Type ◽

Investor Confidence ◽

The World Bank ◽

Current Account Deficits ◽

High Inflation ◽

Power Deficit

Subject Outlook for Zambia's IMF programme. Significance The World Bank in its most recent report expects Zambia's GDP growth to slow to 3.4% this year from 3.6% in 2015. The slowdown is symptomatic of an array of macroeconomic challenges -- including low commodity prices, drought, currency volatility, high inflation, fiscal and current account deficits and rising debt burdens -- that have driven the Patriotic Front (PF) government to seek assistance from the IMF. Impacts Glencore's plans to invest 1.1 billion dollars in its Mopani mine will extend the asset's life, possibly by up to 25 years. The new variable mining tax system, in which tax rates rise and fall depending on global metals prices, will improve investor confidence. The substantial power deficit will persist due to the drought, which is depressing hydroelectricity output, and dilapidated facilities. Recent investments in renewables capacity -- in particular, solar power -- will prove insufficient to mitigate electricity shortages.

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Diversification of Private Participation in Public Infrastructure in Developing Countries

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.c6057.118419 ◽

2019 ◽

Vol 8 (4) ◽

pp. 12060-12070 ◽

Cited By ~ 1

Keyword(s):

Developing Countries ◽

World Bank ◽

Public Infrastructure ◽

Water Projects ◽

Macroeconomic Conditions ◽

Private Finance ◽

The World Bank ◽

Wide Range ◽

Private Participation ◽

The World

Public Private Partnership (PPP) is widely practiced in delivering public infrastructure. PPP utilizes private finance and management strengths. A number of countries worldwide have diverse demands. Political, institutional and macroeconomic conditions are involved in PPP in a wide range of public infrastructures and services. In diverse situations, countries worldwide are involved in a multiple number of PPP projects. With the proliferation of wide engagement in PPP, this paper examines how countries are attracting the private sector in the development of public infrastructure. The paper also determines what is engaged in PPP infrastructure using the multiple discrete-continuous extreme value (MDCEV) model. By examining the 4,423 projects from 86 developing countries, we found that countries are likely to be involved in telecommunication projects, followed by the energy and transportation and water projects. Water is one of the least preferred sectors among the four major infrastructure sectors provided by the PPI database of the World Bank.

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The effect of trade and monetary policy indicators on the development of renewable energy in Latin America

Critical Perspectives on International Business ◽

10.1108/cpoib-04-2018-0037 ◽

2019 ◽

Vol 16 (4) ◽

pp. 337-359 ◽

Cited By ~ 1

Author(s):

Dina Frutos-Bencze ◽

Kujtim Avdiu ◽

Stephan Unger

Keyword(s):

Principal Component Analysis ◽

Monetary Policy ◽

Renewable Energy ◽

World Bank ◽

Principal Component ◽

Foreign Exchange Reserves ◽

Content Type ◽

The World Bank ◽

The World ◽

Energy Indicators

Purpose This paper aims to investigate the effect of monetary policy indicators on Latin America’s renewable energy development. The authors conduct several regressions as well as a Principal Component Analysis (PCA) to unveil relationships among possible driving factors among others the current account balance, interest rates, money flow and energy trade balance for Latin America’s energy mix. Design/methodology/approach The analysis was a two-part process. First, the authors used multiple regression to identify if monetary policy affects the development of renewable energy usage at all. To investigate the singular effects of each of the nine macro-economic variables and four energy indicators, collected from the World Bank (2017) database, several regressions were run where the authors regressed each economic indicator on each energy variable. Then, the authors conducted a principal component analysis with all 13 variables. Findings The authors found a significant relationship between the clean energy share and governmental spending boosting GDP as well as a significant relationship between governmental spending and the amount of foreign exchange reserves. Declining net energy imports indicate that countries in Latin America are getting more and more energy autonomous for the price of building up huge amounts of foreign exchange reserves. Research limitations/implications Renewable energy indicators are not always available for all Latin American countries. Data tend to be scattered. However, sources such as the International Renewable Energy Agency and the World Bank database can be complementary. Practical implications The understanding of the effects and impacts of some of the monetary policy related indicators can provide insights for improving renewable energy financing policies. In turn, such policies can have increased influence on renewable energy sustainability and potentially contribute to improving environmental policies. Originality/value The specific impact of the selected variables on renewable energy has not been studied. This study attempts to discern the impact of such variables to understand how they influence the renewable energy mix. The insights can in turn inform and modify existing policies and guidelines as well as advise new policy.

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Fed's rate caution unsettles global markets

Emerald Expert Briefings ◽

10.1108/oxan-db205579 ◽

2015 ◽

Keyword(s):

Monetary Policy ◽

Emerging Markets ◽

World Bank ◽

Financial Institutions ◽

Central Banks ◽

External Factors ◽

Global Markets ◽

Content Type ◽

The World Bank ◽

The World

Significance Her comments followed the Fed's September 17 decision to keep rates unchanged because of concerns about financial turmoil and economic weakness in emerging markets (EMs). The Fed's dovish decision, although defensible given subdued inflationary pressures, illustrates how economic and financial uncertainties in China are influencing global policymaking. Impacts The future conduct of US monetary policy is leading to sharp divisions within global financial institutions. The IMF and the World Bank urge the Fed to stand pat, while the BIS highlights risks of ultra-loose policies. The Fed's reluctance to raise rates and the related volatility impede the exit from unconventional policies of other major central banks. Sentiment towards EMs will also be hit by domestic vulnerabilities which, in some countries, are more important than external factors.

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Contraction spells economic doldrums for South Africa

Emerald Expert Briefings ◽

10.1108/oxan-db202912 ◽

2015 ◽

Keyword(s):

South Africa ◽

Monetary Policy ◽

World Bank ◽

Water Insecurity ◽

Content Type ◽

The World Bank ◽

The World ◽

Wage Negotiation ◽

Us Monetary Policy

Significance The World Bank in its August 17 Economic Update warned about the downside risks to South Africa posed by anticipated US monetary policy tightening and cooling Chinese growth, especially given domestic structural weaknesses, including labour unrest, electricity shortages and growing fiscal imbalances. Impacts Future tax increases will probably not include a mining windfall tax, due to government concerns about the sector's future. Water insecurity due to shortages and degraded infrastructure will rise in prominence among the risks concerning companies. Strikes in the gold sector are probable, unless state mediation breaks the current wage negotiation deadlock.

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