Is the Working Capital Channel of the Monetary Policy Quantitatively Relevant? A Structural Estimation Approach

2021 ◽  
Author(s):  
Hamilton Galindo Gil





Author(s):  
Emeka Osuji ◽  
Stanley Emife Nwani

The informal sector is globally significant because it accounts for much of the job placements, especially in the developing economies. About 99 per cent of the 37million enterprises in Nigeria are microenterprises, most of which are financially excluded. This study examined the structural and demographic features of Nigeria’s MSMEs, from the stand point of the efficacy of monetary policy. The study employed survey research design using structured questionnaire administered on 282 microenterprises in Lagos. The results indicated that the MSME sector suffers significantly from limited access to finance and banking services. Operators in the sector placed little or no reliance on commercial banks for both start-up and additional working capital. They, therefore, operated largely outside the banking system thereby acting, at best, as passive observers of government’s monetary policy actions. The study recommended the vigorous pursuit of financial inclusion, as a strategy for enhanced monetary policy effectiveness.





2019 ◽  
Vol 30 (1) ◽  
pp. 141-145
Author(s):  
Stojan Dukoski

Every organization without regards to the products and services it produces needs capital.Capital is the driving force behind every organization,and no organization can survive without capial in the business environment.Capital is one of the necessary variables to conduct business and it's volume is determining the size of the company. Without efficient capital allocation the activity and the business dealings of the company will certainly stop.With efficient capital management has profound effect on the financial results of the company. There are two types of capital,fixed assets and working capital. The fixed assets are the capital which is invested in a period that lasts more than a year.These assets are having three forms:material investments,imaterial investments and long term financial investments.The basic characteristic of the fixed assets is that they are not spent at once and they do not transfer their value to the finished products and services.Their costs are seen through the amortization phenomenon. Working capital is the capital that are invested for a period of less than a year.They are also called circular assets.They constantly regenerating.They come in three types: money,materials and claims. Capital is the basic ingredient for success of every company. It shows us that without it the companies would not be able to make purchases and make partnerships. Capital is the basic source of every business and has the power to transform the business and make turnaround if the situation is bad, but also to worsen the situation if there is a lack of capital. Capital can transform economies, but also could destroy economies. That is the reason the monetary policy is loose at some moments, because the lack of capital can ruin a decent economy. Companies know this and they try to capitalize themselves very well, because at times capital can be very scarce.



2006 ◽  
Author(s):  
Vítor Gaspar ◽  
Otmar Issing ◽  
Oreste Tristani ◽  
David Vestin


Author(s):  
Michael D. Bordo ◽  
David C. Wheelock
Keyword(s):  


10.32468/be.0 ◽  
2012 ◽  
Author(s):  
Hernando Vargas-Herrera ◽  
Pamela Andrea Cardozo-Ortiz


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