scholarly journals EMPIRICAL EVIDENCE ON THE IMPACT OF MONETARY POLICY ON NATIONAL ECONOMIC GROWTH

2020 ◽  
Vol 6 (1) ◽  
pp. 64-79
Author(s):  
Abdul Kadir Arno ◽  
Nirwana Halide ◽  
Iksan Purnama ◽  
Akbar Sabani
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Empirical Evidence ◽  
Time Consistency ◽  
Analysis Tool ◽  
Economic Climate ◽  
National Economic ◽  
Long Time ◽  
The Interest Rate ◽  
The Impact

This article discusses empirical evidence of----imonetary -----ipolicy's impact----ion national----ieconomic growth----iin the decade 2010-2019. This article is analyzed using a regression analysis tool. This article concludes that 1) the interest rate (BI Rate) has----ian---iimpact rate----ion national----ieconomic---igrowth---iin----ithe decade 2010-2019 of only 7 percent. Impact-----iof US $----iexchange----irate---ion----ithe domestic----ieconomic----igrowth---iof only 90 percent 3) Impact of the amount of money in circulation on the national economic growth of only 76.8 percent, 4) Impact----iof----iinflation----irate----ion----ithe domestic economic growth of only 4.3 percent 5) impact of total investment in national economic growth is only 60.8 percent. Thus-----ithe----imain-----iobjective-----iof-----imonetary-----ipolicy is more emphasis-----ion-----iprice-----istability. With the first consideration, with output determined by long-term economic capacity, all systems that encourage economic growth will create inflation so that it will not affect real economic growth. Second, the rational financial agent understands that policymakers' actions in supporting the economic growth that helps increase can lead to time consistency problems. Third, monetary policy influencing economic variables takes a long time and has a lag. Fourth, price stability can encourage creating a better economic climate because it will reduce costs from inflation

scholarly journals EMPIRICAL EVIDENCE ON THE IMPACT OF MONETARY POLICY ON NATIONAL ECONOMIC GROWTH

2020 ◽  
Vol 6 (1) ◽  
pp. 64-79
Author(s):  
Abdul Kadir Arno ◽  
Nirwana Halide ◽  
Iksan Purnama ◽  
Akbar Sabani
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Empirical Evidence ◽  
Time Consistency ◽  
Analysis Tool ◽  
Economic Climate ◽  
National Economic ◽  
Long Time ◽  
The Interest Rate ◽  
The Impact

This article discusses empirical evidence of----imonetary -----ipolicy's impact----ion national----ieconomic growth----iin the decade 2010-2019. This article is analyzed using a regression analysis tool. This article concludes that 1) the interest rate (BI Rate) has----ian---iimpact rate----ion national----ieconomic---igrowth---iin----ithe decade 2010-2019 of only 7 percent. Impact-----iof US $----iexchange----irate---ion----ithe domestic----ieconomic----igrowth---iof only 90 percent 3) Impact of the amount of money in circulation on the national economic growth of only 76.8 percent, 4) Impact----iof----iinflation----irate----ion----ithe domestic economic growth of only 4.3 percent 5) impact of total investment in national economic growth is only 60.8 percent. Thus-----ithe----imain-----iobjective-----iof-----imonetary-----ipolicy is more emphasis-----ion-----iprice-----istability. With the first consideration, with output determined by long-term economic capacity, all systems that encourage economic growth will create inflation so that it will not affect real economic growth. Second, the rational financial agent understands that policymakers' actions in supporting the economic growth that helps increase can lead to time consistency problems. Third, monetary policy influencing economic variables takes a long time and has a lag. Fourth, price stability can encourage creating a better economic climate because it will reduce costs from inflation

scholarly journals An Insight Regarding Economic Growth and Monetary Policy in Romania

2015 ◽  
Vol 62 (s1) ◽  
pp. 85-95 ◽  
Author(s):  
Valentina Mera ◽  
Monica Pop Silaghi
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rate ◽  
Sacrifice Ratio ◽  
National Bank ◽  
Potential Gdp ◽  
The Interest Rate ◽  
The Cost ◽  
The Impact ◽  
The Sacrifice

Abstract This study introduces some aspects regarding the link between monetary policy and economic growth, through a rule well known in the literature which is named Taylor’s rule and through the concept of sacrifice ratio which encompasses the impact of the cost of disinflation on the economic growth of a country. In this paper, we rely on estimates of the growth of potential GDP of the National Bank of Romania for the period 2003-2006 while for the period 2007-2012 we rely on the estimates reported by the International Monetary Fund. Thus, we carry a deterministic exercise for computing the interest rate on the period 2003-2012 as depicted from the Taylor’s rule and we compare it with the effective monetary policy interest rate used by the National Bank of Romania. In the same time, we calculate the sacrifice ratio for the period 1997-2013 so as to be able to form an opinion regarding the cost of disinflation and its comparison with the typical estimates for larger time spans and for other countries.

scholarly journals Impact of Monetary Policy on Economic Growth: Empirical Evidence in Vietnam

2019 ◽  
Vol 5 (10) ◽  
Author(s):  
Tang My Sang
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Money Supply ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
The Impact

Through the secondary data collected from 2009 to 2018, the research used Var method to test the impact of monetary policy on economic growth in Vietnam. The results show that there is a relationship between the variables of monetary policy and economic growth, in which the money supply has a positive impact at a high significant level, interest rates have a negative impact on Vietnam economic growth. From the results obtained, the research proposed solutions for operating monetary policy.

scholarly journals Evolution of views on the role of central bank policy: conclusions for Ukraine

2021 ◽  
Vol 2021 (4) ◽  
pp. 7-23
Author(s):  
Bohdan DANYLYSHYN ◽  
Ivan BOHDAN
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Emerging Markets ◽  
Inflation Targeting ◽  
Financial Intermediation ◽  
Aggregate Demand ◽  
Economic Recovery ◽  
Economic Agents ◽  
The Interest Rate ◽  
The Impact

The effects of COVID-19 pandemic resulted in modification of the goals and instruments of central banks activities in the context of strengthening their responsibility for supporting aggregate demand, more effective financial intermediation, smooth functioning of financial markets and creating conditions for inclusive economic growth. The purpose of the article is to elaborate proposals for changing the priorities of monetary policy in an economy with emerging markets in the post-crisis economic recovery. The article criticizes the concept of money supply neutrality from the standpoint of its simplified interpretation of the impact of the interest rate on activities with different duration and complexity of the technological process, as well as its detachment from the principles of inclusive economic growth. The authors reveal the factors that reduce the effectiveness of the application of the monetary regime of inflation targeting in countries with emerging markets, which consist in the dominance of non-monetary inflation factors, high import dependence of the economy etc. Based on empirical data for 1990-2019, they prove that low inflation is not a sufficient and necessary prerequisite for achieving economic success by a country. Authors suggest that the share of components of the inflation basket in Ukraine with high non-monetary effects is 62%, which indicates the presence of high risks of failures of the monetary policy transmission mechanisms. They argue that under the Ukrainian conditions at the beginning of 2021 an increase in the central bank’s key rate will appear to be counterproductive: the access to critically needed borrowed resources will go down, economic agents will spend more of their savings, and the pace of economic recovery will slow down. The recommendations for improving the NBU policy have been devised; they consist in ensuring the flexibility of the monetary inflation targeting regime, introducing targeted refinancing instruments to increase the efficiency of the financial intermediation, developing effective coordination of monetary and fiscal policy, and implementing measures aimed at creating conditions for inclusive economic growth.

scholarly journals Analisis Dampak Kebijakan Moneter terhadap Pertumbuhan Ekonomi di Indonesia

2021 ◽  
Vol 6 (1) ◽  
pp. 34
Author(s):  
Hari Winarto ◽  
Adi Poernomo ◽  
Agus Prabawa
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Significant Relationship ◽  
Secondary Data ◽  
Analysis Tool ◽  
Estimation Model ◽  
Interesting Phenomenon ◽  
The Right ◽  
The Impact

The circuit of government monetary policy which is still uncertain in influencing economic growth is an interesting phenomenon to be examined, especially because it occurs in the era of globalization where monetary traffic is very rapid, the situation is the main problem in this study. Therefore, this study aims to determine the impact of monetary policy on economic growth in Indonesia using quantitative analysis methods. The type of data used is secondary data in the form of Time Series originating from the Central Statistics Agency, Bank Indonesia, and the Ministry of Trade from 2010 to 2019 in the form of quarterly. Based on the results of testing the determination of the analysis tool model shows that the right estimation model is Vector Auto Regression (VAR). The results of this study indicate that money supply has a significant relationship to economic growth. While interest rates, exchange rates, and inflation do not have a significant relationship to economic growth

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

scholarly journals The Impact of Development Aid on the International Migrations in the African, Caribbean, and Pacifi c Group of States

2017 ◽  
Vol 20 (1) ◽  
pp. 101-112 ◽  
Author(s):  
Marko Gregl ◽  
Klavdij Logožar
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Direct Effect ◽  
Developed Countries ◽  
Development Aid ◽  
Donor Side ◽  
Financial Flows ◽  
The Pacific ◽  
African Caribbean ◽  
The Impact

Abstract Development aid, one of the most important mechanisms for the redistribution of global wealth, represents financial flows that have economic growth and social improvement as their main objective. It has also frequently been described as an instrument which is able to diminish international migrations and is used by several developed countries. Recently, much empirical evidence and several contributors have argued that connection and set out other grounds. This paper explores the interaction between development aid and migrations from developing to developed countries. We want to determine, if the amount of development aid has any impact on migrations from African, Caribbean, and the Pacific Group of States. Our results show that development aid does not have a direct effect on migrations and therefore, in terms of international migrations, is not effective. Moreover, we will argue that the donor side should use different policies and other mechanisms to manage migrations from those countries

The Impact of the Credit Channel on Macroeconomic Variables and Bank Characteristics in the Brazilian Economy from 2009 to 2018

2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Mohammad Farajnezhad
Keyword(s):  
Monetary Policy ◽  
Fixed Effect Model ◽  
Credit Channel ◽  
Macroeconomic Variables ◽  
Brics Countries ◽  
Effect Model ◽  
Level Data ◽  
Monetary Policy Transmission Mechanism ◽  
The Interest Rate ◽  
The Impact

This article uses commercial bank-level data to examine a credit channel of the monetary policy transmission mechanism in the Brazilian economy from BRICS countries.  Static panel data with a fixed-effect model are used for data analysis. Using a sample of 212 commercial banks from 2009 to 2018. According to the findings of this study, there is a significant and positive relationship between macroeconomic variables that affect the interest rate and GDP with the loan amount, but not with the inflation rate. Also, it is reasonable to conclude that banks in Brazil react to monetary policy in a variety of ways.

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