scholarly journals Secured and Unsecured Interbank Markets: Monetary Policy, Substitution and the Cost of Collateral

2019 ◽  
Author(s):  
Thibaut Piquard ◽  
Dilyara Salakhova
Keyword(s):  
Monetary Policy ◽  
Interbank Markets ◽  
The Cost

scholarly journals Effect of Monetary Policy on Financial Intermediation in Nigeria

2020 ◽  
pp. 22-36
Author(s):  
Chukwu, Kenechukwu Origin ◽  
Ogbonnaya-Udo, Nneka
Keyword(s):  
Monetary Policy ◽  
Financial Intermediation ◽  
Research Work ◽  
Secondary Data ◽  
Causality Test ◽  
Explanatory Variables ◽  
Financial Infrastructure ◽  
Effect Of Monetary Policy ◽  
The Cost ◽  
Reserve Ratio

The study examined the effect of monetary policy on financial intermediation in Nigeria. Secondary data were collected from Central Bank of Nigeria statistical bulletin spanning from 1988 to 2018.The research work selected Nigeria as its sample and used the VECM to test the effect of the explanatory variables (Monetary Policy Rate, Cash Reserve Ratio, Loan to Deposit Ratio and Liquidity Ratio) on the dependent variable (Total Domestic Bank Credit).The findings from the study revealed that monetary policy has insignificant effect on intermediation in Nigeria. The granger causality test also shows a unidirectional causality between monetary policy and intermediation in Nigeria. The results suggest that lending interest rate is still high while deposit rate is low and this discourages savings and borrowing in the country. The study recommends among others that monetary policy should be reviewed in order to lower the cost of borrowing (lending rate) so as to encourage investors to borrow more. Commercial banks should try to increase its deposit rates which will help them to mobilize more deposits, as this will enhance their lending services. Financial infrastructure in the country should be improved upon as this will help banks in deposit mobilization especially the unbanked in the country.

scholarly journals Monetary Transmission through Interest Rate Channel in Vietnam Before and After the Crisis

2014 ◽  
Vol 222 ◽  
pp. 51-75
Author(s):  
Hương Trầm Thị Xuân ◽  
Vinh Võ Xuân ◽  
CẢNH NGUYỄN PHÚC
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Monetary Transmission ◽  
Var Model ◽  
Macroeconomic Theory ◽  
Cost Channel ◽  
Before And After ◽  
The Cost ◽  
The Impact ◽  
Interest Rate Channel

The paper employs the VAR model to examine the impact of monetary policy on the economy through interest rate channel (IRC) and levels of transmission before and after the 2008 crisis. The results indicate that in the period before the financial crisis, IRC exists in accordance with macroeconomic theory; however, the crisis period, in which increases in SBV monetary policy rates lead to increased inflation, has proved the existence of the cost channel of monetary transmission in Vietnam.

Liquidity, Risk Premia, and the Financial Transmission of Monetary Policy

2018 ◽  
Vol 10 (1) ◽  
pp. 309-328 ◽  
Author(s):  
Itamar Drechsler ◽  
Alexi Savov ◽  
Philipp Schnabl
Keyword(s):  
Monetary Policy ◽  
Risk Sharing ◽  
Financial System ◽  
Risk Premia ◽  
New Keynesian ◽  
Liquidity Premium ◽  
Impact Risk ◽  
The Cost ◽  
Transmission Of Monetary Policy

In recent years, there has been a resurgence of research on the transmission of monetary policy through the financial system, fueled in part by empirical findings showing that monetary policy affects asset prices and the financial system in ways not explained by the New Keynesian paradigm. In particular, monetary policy appears to impact risk premia in stock and bond prices and to effectively control the liquidity premium in the economy (the cost of holding liquid assets). We review these findings and recent theories proposed to explain them, and we outline a conceptual framework that unifies them. The framework revolves around the central role of liquidity in risk sharing and explains how monetary policy governs its production and use within the financial sector.

scholarly journals Relationship Between Energy Prices, Monetary Policy and Inflation; A Case Study of South Asian Economies

2014 ◽  
Vol 3 (1) ◽  
pp. 43-58
Author(s):  
Keyword(s):  
Monetary Policy ◽  
Side Effects ◽  
Interest Rate ◽  
Money Supply ◽  
Side Effect ◽  
Aggregate Demand ◽  
Oil Prices ◽  
Energy Prices ◽  
Aggregate Supply ◽  
The Cost

Abstract Monetary policy tools, including money supply and interest rate, are the most popular instruments to control inflation around the globe. It is assumed that a tight monetary policy, either in form of reduction in money supply or an increase in interest rate, will reduce inflation by reducing aggregate demand in an economy. However, monetary policy could be counterproductive if cost side effects of monetary tightening prevail. High energy prices may increase the cost of production by reducing aggregate supply in the economy. If tight monetary policy is used to reduce this cost push inflation, the cost side effect of energy prices will add to cost side effects of monetary tightening and will become dominant. In this case, the monetary policy could be counterproductive. Furthermore, simultaneous reduction in aggregate supply and aggregate demand will bring twofold reduction in output. Therefore greater care is needed in the use of monetary policy in the situation of cost push inflation. This article investigates the presence of cost side effect of monetary transmission mechanism, the role of international oil prices in domestic inflation, and implications for monetary policy. The findings suggest that both monetary policy and oil prices have cost side effects on inflation and monetary tightening could be counterproductive if used to reduce energy pushed inflationary trend.

The cost of deviating from the optimal monetary policy: A panel VAR analysis

2014 ◽  
Vol 15 ◽  
pp. 210-229 ◽  
Author(s):  
Chiara Guerello
Keyword(s):  
Monetary Policy ◽  
Panel Var ◽  
Optimal Monetary Policy ◽  
Var Analysis ◽  
The Cost

scholarly journals Bank Liquidity, Interbank Markets, and Monetary Policy

2011 ◽  
Vol 24 (8) ◽  
pp. 2656-2692 ◽  
Author(s):  
Xavier Freixas ◽  
Antoine Martin ◽  
David Skeie
Keyword(s):  
Monetary Policy ◽  
Interbank Markets

scholarly journals Learning about monetary policy rules when the cost-channel matters

2009 ◽  
Vol 33 (11) ◽  
pp. 1880-1896 ◽  
Author(s):  
Luis-Gonzalo Llosa ◽  
Vicente Tuesta
Keyword(s):  
Monetary Policy ◽  
Policy Rules ◽  
Monetary Policy Rules ◽  
Cost Channel ◽  
The Cost

scholarly journals Business cycle (de)synchronization in the aftermath of the global financial crisis: implications for the Euro area

2015 ◽  
Vol 19 (5) ◽  
Author(s):  
Stelios Bekiros ◽  
Duc Khuong Nguyen ◽  
Gazi Salah Uddin ◽  
Bo Sjö
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Business Cycles ◽  
Euro Area ◽  
Global Financial Crisis ◽  
Wavelet Coherence ◽  
Before And After ◽  
The Global Financial Crisis ◽  
The Cost ◽  
European Economies

AbstractThe introduction of Euro currency was a game-changing event intended to induce convergence of Eurozone business cycles on the basis of greater monetary and fiscal integration. The benefit of participating into a common currency area exceeds the cost of losing autonomy in national monetary policy only in case of cycle co-movement. However, synchronization was put back mainly due to country-specific differences and asymmetries in terms of trade and fiscal policies that became profound at the outset of the global financial crisis. As opposed to previous studies that are mostly based on linear correlation or causality modeling, we utilize the cross-wavelet coherence measure to detect and identify the scale-dependent time-varying (de)synchronization effects amongst Eurozone and the broad Euro area business cycles before and after the financial crisis. Our results suggest that the enforcement of an active monetary policy by the ECB during crisis periods could provide an effective stabilization instrument for the entire Euro area. However, as dynamic patterns in the lead-lag relationships of the European economies are revealed, (de)synchronization varies across different frequency bands and time horizons.

Optimal monetary policy with the cost channel

2006 ◽  
Vol 53 (2) ◽  
pp. 199-216 ◽  
Author(s):  
Federico Ravenna ◽  
Carl E. Walsh
Keyword(s):  
Monetary Policy ◽  
Optimal Monetary Policy ◽  
Cost Channel ◽  
The Cost

scholarly journals The price puzzle revisited: Can the cost channel explain a rise in inflation after a monetary policy shock?

2009 ◽  
Vol 31 (2) ◽  
pp. 268-289 ◽  
Author(s):  
Steffen Henzel ◽  
Oliver Hülsewig ◽  
Eric Mayer ◽  
Timo Wollmershäuser
Keyword(s):  
Monetary Policy ◽  
Cost Channel ◽  
Price Puzzle ◽  
Monetary Policy Shock ◽  
The Cost
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