Choice of the Path of Fiscal and Monetary Policy Coordination in China

2009 ◽  
Vol 5 (3) ◽  
pp. 211-224
Author(s):  
Xiuyun Cai
Keyword(s):  
Central Bank ◽  
Supply And Demand ◽  
Aggregate Demand ◽  
Policy Coordination ◽  
Chinese Economy ◽  
Open Market ◽  
Total Size ◽  
Monetary Policies ◽  
Monetary Policy Coordination

he role of monetary policies regulating social the aggregate demand is highlighted, while the role in restructuring the supply and demand are greater limitations. The Central Bank indirectly affects the currency in circulation and the total size of credit by adjusting the statutory deposit reserve rate, the rediscount rate, open market operations; The Central Bank increases or decreases in money supply by limiting the loan quota and the currency issuance. Thus the role of the monetary policies in alleviating serious problems in the field of circulation area is more rapid, clear and effective. However, the central bank can not loan directly to a large number of economic development in lagging industries especially public goods industries as a result of the restrict of the credit funds movement, and therefore the role of monetary policies in improving the social structure and the rate relationship of national economy is relatively limited. The structural imbalance between domestic demand and external demand makes the Chinese economy affected seriously in the circumstances of the U.S. financial crisis and a sudden decline in global demand.

Niezależność Narodowego Banku Polskiego a relacje z Parlamentem RP

2021 ◽  
Vol 4(165) ◽  
pp. 105-122
Author(s):  
Rafał Sura
Keyword(s):  
Central Bank ◽  
Financial Markets ◽  
World Economy ◽  
Supply And Demand ◽  
Protective Measures ◽  
Major Significance ◽  
The Common ◽  
The Republic ◽  
Polish Government

The position of the NBP at the time of the common market and progressive Europeanisation of the economy and all areas of community life was particularly important. Currently, in the time of the global crisis caused by the SARS-CoV-2 coronavirus, encompassing both the supply and demand side of the world economy, the role of the central bank is increasing. Without its involvement, there would be no effective protective measures, aimed at mitigating the decline in GDP growth in Poland and protecting jobs. The central bank, together with the Polish Government and Parliament, is of key importance for Poland’s economic development, while the independence of the NBP is of major significance for its credibility in financial markets. That is why it is so important to try to answer the questions what the independence of the NBP is and whether constitutional and statutory regulations of the relations between the Parliament of the Republic of Poland and the central bank do not breach this independence.

scholarly journals Monetary Policy Coordination and the Role of Central Banks

2014 ◽  
Vol 14 (70) ◽  
pp. 1 ◽  
Author(s):  
Rakesh Mohan ◽  
Muneesh Kapur ◽  
◽  
Keyword(s):  
Monetary Policy ◽  
Central Banks ◽  
Policy Coordination ◽  
Monetary Policy Coordination

scholarly journals The Role Of Turkish Central Bank During And After The 2008-Financial Crises

2011 ◽  
Vol 10 (12) ◽  
pp. 93
Author(s):  
Ayhan Guney
Keyword(s):  
Central Bank ◽  
Financial Crises ◽  
Central Banks ◽  
Fiscal Policies ◽  
Monetary Policies ◽  
The World ◽  
One Year ◽  
Short Time ◽  
Time Spread

The Global Financial Crises occurred at the end of 2008, and in very short time, spread to all sectors of economy.All countries were badly hit by the crises and the World economies shrank almost $50 trillion, the equivalent of one year of world GDP.During the process, especially the banking sectors of the world economies was smashed, and many banks and financial institutions bankrupted and some others liquidated such as Lehman Brothers. All countries took the drastic fiscal and monetary measures to overcome the global crises. So, this paper focuses on the functions of central banks asking that what the role of central banks to cope with the global crises was, and thus omits the side of fiscal policies implemented by different countries.It especially discusses the role of Turkish Central Bank and its monetary policies during and after the 2008-Global Financial Crises. What was the achievement of the measures taken and the monetary policies implemented by Turkish Central Bank during and after the financial crises?

IMF deal will have mixed impact in Argentina

2018 ◽  
Keyword(s):  
Central Bank ◽  
Policy Coordination ◽  
Medium Term ◽  
Treasury Bonds ◽  
Monetary Policies ◽  
Foreign Investors ◽  
Content Type ◽  
Investor Confidence ◽  
Combined Operation ◽  
The Government

Significance Driven by the currency run that saw a depreciation of 24.1% in just three weeks, the government has begun talks with the IMF in a bid to restore investor confidence. The peso run ended on May 15 owing to a combined operation by the Central Bank and the Finance Ministry: the Central Bank put a floor under the exchange rate by offering 5 billion dollars at 25 pesos to the dollar while the Finance Ministry reopened its tender of Treasury bonds to attract foreign investors. Impacts The sharp peso depreciation will boost inflation; workers will demand a reopening of wage negotiations. Falling real incomes will undermine economic recovery. Investors will demand more policy coordination and coherent fiscal and monetary policies. IMF funds will ease medium-term default fears, but fiscal tightening will be required to lower dependence on foreign finance.

scholarly journals Polityka pieniężna Narodowego Banku Polskiego od roku 1989

2015 ◽  
pp. 173-192
Author(s):  
Paweł Franka ◽  
Anna Wisz
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Exchange Rates ◽  
Inflation Targeting ◽  
Banking System ◽  
Policy Instruments ◽  
Open Market ◽  
The Past ◽  
National Bank

The article discusses the activities of National Bank of Poland during the past twenty-five year and more specifically in the years 1989–2013 with particular emphasis on monetary policy. During this time, the Polish central bank has undergone fundamental change, starting from the position of the so-called monobank, i.e. bank without autonomy in activities, characteristic of planned economy. The article describes the process of transformation of the National Bank of Poland to the role of a central bank operating in a market economy. The paper emphasizes all the important events in the transformation, including building of a two-tier banking system, the gradual replacement of the administrative measures by monetary policy instruments, currency denomination, constitutional guarantees of the role and independence of the National Bank of Poland, creation of the Monetary Policy Council – a departure from the single monetary policy-making in favor of collegiality, changing the monetary policy strategy to direct inflation targeting, bank exchange rates policy, open market operations.

scholarly journals Developments in Monetary Policies before and after the Recent Financial Crisis and the Change in the Role of Central Banks

2014 ◽  
Author(s):  
Zekayi Kaya ◽  
Erkan Tokucu
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Stability ◽  
Policy Instruments ◽  
Central Banks ◽  
Price Stability ◽  
Lender Of Last Resort ◽  
Monetary Policies ◽  
Recent Financial Crisis

During the historical process, application of the monetary policies and the roles of the central banks have changed within the framework of the developments in the world economy, problems encountered and the economic policies as a solution to these problems. The financial crises after 1990 and the recent financial crisis as the biggest experienced one after 1930s, caused an increase in the importance of the task of providing financial stability besides price stability and in this context in the function of “lender of last resort” of the central bank. The crisis required using new policy instruments in addition to interest rate instrument which was not sufficient enough in providing financial stability and the roles of the central banks in providing financial stability changed. In this study, applications of monetary policies and the changing role of the central banks will be examined. Within this framework, traditional and non-traditional instruments will be explained and the problems that can be confronted by a central bank when providing price stability besides financial stability will be remarked.

scholarly journals Discretion of the Monetary Policy: An Exemplification with Bolivia

2019 ◽  
Vol 66 (1) ◽  
pp. 101-115 ◽  
Author(s):  
Roger Alejandro Banegas Rivero ◽  
Marco Alberto Núñez Ramírez ◽  
Sacnicté Valdez del Ríoe
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Open Economy ◽  
Generalized Method Of Moments ◽  
Elastic Response ◽  
Output Gap ◽  
Open Market ◽  
Economic Cycle

Abstract In this paper, we evaluate and quantify the role of the discretion of the monetary policy in an open small and open economy (the case of Bolivia). The results suggest that conventional instruments of the Central Bank respond in different ways: interest rates present a sensitive/elastic response to output gap (actual economic cycle) [1.8]; an inelastic mechanism to inflation [0.5]. On the other hand, open market operations in the Central Bank responds elastically to inflation [1.2] and insensible to the output gap. These results are robust to alternative specification utilizing the Generalized Method of moments (GMM), for the quarterly period from 2000(T1)-2015(T4).

Understanding the Role of Central Banks in the Financial System

2020 ◽  
pp. 40-64
Keyword(s):  
Central Bank ◽  
Interest Rates ◽  
Critical Role ◽  
Balance Sheet ◽  
Financial System ◽  
Central Banks ◽  
Central Banking ◽  
Historical Background ◽  
Monetary Policies

The main responsibility of the central banks is to implement monetary policies. In this framework, they define interest rates and the amount of the money in the financial system. Hence, it can be said that central banks have the critical role in the development of the financial system. Because of this situation, it is obvious that central banks should satisfy some requirements, such as independence, in order to contribute to the effectiveness of the financial systems. Parallel to this aspect, this chapter aims to understand the role of the central banks in the financial system. In this context, the purpose and historical background of the central banking are explained. In addition to this situation, the subject of the central bank independence is identified as well. In the final aspect, important accounts in the analytical balance sheet of the central bank are defined.

scholarly journals Fiscal policy is still an effective instrument of macroeconomic policy

2011 ◽  
Vol 58 (2) ◽  
pp. 143-156 ◽  
Author(s):  
Philip Arestis
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Macroeconomic Policy ◽  
Policy Coordination ◽  
Careful Consideration ◽  
Recent Developments ◽  
Monetary Policy Coordination ◽  
Effective Instrument ◽  
Fiscal And Monetary Policy

Recent developments in macroeconomics and macroeconomic policy, what has come to be known as ?New Consensus in Macroeconomics?, downgrades the role of fiscal policy and upgrades that of monetary policy. This contribution aims to consider this particular contention by focusing on fiscal policy. We consider fiscal policy within the current ?new consensus? theoretical framework, which views fiscal policy as ineffective, and argue that it deserves a great deal more attention paid to it than it has been recently. We review and appraise recent and not so recent theoretical and empirical developments on the fiscal policy front. The possibility of fiscal and monetary policy coordination is proposed and discussed to conclude that it deserves a great deal more attention and careful consideration than it has been given to in the past. Our overall conclusion is that discretionary application of fiscal and monetary policy in a coordinated and focused manner as a tool of macroeconomic policy deserves serious attention paid to it than hitherto.

Sign in / Sign up

Export Citation Format

Share Document