scholarly journals PROSPEK EKONOMI SYARI’AH MELALUI PRODUK MUDARABAH DALAM MEMPERKUAT SEKTOR RIIL

2016 ◽  
Vol 4 (1) ◽  
pp. 141
Author(s):  
Siti Mujibatun
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Government Support ◽  
Rate Of Return ◽  
Economic Sustainability ◽  
Real Sector ◽  
The Real ◽  
The Interest Rate ◽  
Real Assets

<p align="justify"><em>Mudarabah, as an icon of commercial products in Shari'ah Economic,  factually proven toughness in facing  the financial crisis during this time. By placing the product mudarabah proportionally in the financial business institutions have a significant impact on economic sustainability in strengthening the real sector. Some of the benefits include Mudarabah product; has  a rate of return higher than the interest rate applicate on interest bank, based on “production–based” by  transactions based on real assets and not solely on the paperwork that are derivatives and free from elements of speculation. Mudarabah based on production. Therefore, the financial crisis can be minimized because the</em><em> b</em><em>alance sheet of company is stable relatively. To maintain it in the real sector, government support in the form of policies by strengthening the role of national banking intermediation in the financial and real sector investment is needed to minimize the level of unemployment.</em><em></em></p>

scholarly journals Access to Banking and the Role of Inequality and the Financial Crisis

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Mauro Caselli ◽  
Babak Somekh
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Financial Services ◽  
Income Disparities ◽  
Consumer Population ◽  
Alternative Financial Services ◽  
The 2008 Financial Crisis ◽  
The Interest Rate ◽  
Distribution Of Income

Abstract We study access to banking and how it is related to banks’ rate of return on investments and the distribution of income. We develop our empirical framework through a theoretical supply-side model of bank deposit services with a consumer population heterogeneous in income. We use this model to show how decreases in the interest rate margin and higher income disparities lead to an increase in the proportion of unbanked. Using localized US household data from 2009, 2011, 2013 and 2015 we find strong empirical evidence for the predictions of the model. We then structurally estimate our model to estimate the value of having a checking account relative to alternative financial services and to quantify the effects of actual changes in the interest rate margin and the distribution of income that occurred in the aftermath of the 2008 financial crisis.

Crisis Reactions and Their Consequences for the Real Sector of the Russian Economy

2011 ◽  
pp. 39-50
Author(s):  
V. Lushin
Keyword(s):  
Financial Crisis ◽  
Acute Phase ◽  
Dutch Disease ◽  
Added Value ◽  
Real Sector ◽  
The Real ◽  
Balanced Development ◽  
Russian Economy ◽  
The Government ◽  
State Modernization

The author analyzes factors that led to a deeper fall in output and profitability in the real sector of the Russian economy in comparison with other segments during the acute phase of the financial crisis. It is argued that some contradictions in the government anti-recession policy, activities of the financial sector and natural monopolies lead to pumping out added value created in manufacturing and agriculture, increase symptoms of the «Dutch disease», etc. It is shown that it may threaten the balanced development of the Russian economy, and a set of measures is suggested to minimize these tendencies and create a basis for the state modernization policy.

scholarly journals CANDIDE et la monnaie

2009 ◽  
Vol 52 (1) ◽  
pp. 75-103
Author(s):  
Jean-Pierre Aubry ◽  
Pierre Duguay
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Term Structure ◽  
Structural Equations ◽  
Reduced Form ◽  
Real Sector ◽  
Short Term ◽  
The Real ◽  
Structure Equations

Abstract In this paper we deal with the financial sector of CANDIDE 1.1. We are concerned with the determination of the short-term interest rate, the term structure equations, and the channels through which monetary policy influences the real sector. The short-term rate is determined by a straightforward application of Keynesian liquidity preference theory. A serious problem arises from the directly estimated reduced form equation, which implies that the demand for high powered money, but not the demand for actual deposits, is a stable function of income and interest rates. The structural equations imply the opposite. In the term structure equations, allowance is made for the smaller variance of the long-term rates, but insufficient explanation is given for their sharper upward trend. This leads to an overstatement of the significance of the U.S. long-term rate that must perform the explanatory role. Moreover a strong structural hierarchy, by which the long Canada rate wags the industrial rate, is imposed without prior testing. In CANDIDE two channels of monetary influence are recognized: the costs of capital and the availability of credit. They affect the business fixed investment and housing sectors. The potential of the personal consumption sector is not recognized, the wealth and real balance effects are bypassed, the credit availability proxy is incorrect, the interest rate used in the real sector is nominal rather than real, and the specification of the housing sector is dubious.

scholarly journals Financial system and growth and economic development

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 160-170
Author(s):  
Małgorzata Hala
Keyword(s):  
Economic Growth ◽  
Economic System ◽  
Financial Institutions ◽  
Financial System ◽  
Financial Sector ◽  
Real Sector ◽  
The Real ◽  
State And Local ◽  
The Impact

The aim of the article is to present the role of the financial system in economic growth and development. The first part presents the traditional understanding of the relationship between the economic system and economic growth. The second part presents the experience of financial crises and their impact on the conversation on the mutual relations between the financial sector and the real sector. The third part shows the role of the state in the financial system. The article describes the arrangement of interrelated financial institutions, financial markets and elements of the financial system infrastructure.  It shows what part of the economic system the financial system is, and whether it enables the provision of services allowing the circulation of purchasing power throughout the economy. The article presents the important role of the financial system, the role related to the transfer of capital from entities with savings to entities that need capital for investments. It shows the financial system as a set of logically related organizational forms, legal acts, financial institutions and other elements enabling entities to establish financial relations in the real sector and the financial sector, and this system forms the basis of activity for entities using money, enabling the conclusion of various economic transactions, in which money performs various functions. The article also presents the concept of a financial crisis as a situation in which there are rapid changes in the financial market, usually associated with insufficient liquidity or insolvency of banks or financial institutions, and as a result, a decrease in production or its deepening. The article also includes issues related to the impact of public authorities (state and local authorities) on the financial system in the economy.

scholarly journals Does the Interest Rate Form Business Cycle?

2019 ◽  
Vol 4 (1) ◽  
pp. 29-34
Author(s):  
Bijan Bidabad ◽  
Abul Hassan
Keyword(s):  
Interest Rate ◽  
Business Cycle ◽  
Interest Rates ◽  
Banking System ◽  
Real Economy ◽  
Short Term ◽  
The Usa ◽  
Rate Form ◽  
The Interest Rate

Dynamic structural behavior of depositor, bank and borrower and the role of banks in forming business cycle are investigated. We test the hypothesis that does banks behavior make oscillations in the economy through the interest rate. By dichotomizing banking activities into two markets of deposit and loan, we show that these two markets have non-synchronized structures, and this is why the money sector fluctuation starts. As a result, the fluctuation is transmitted to the real economy through saving and investment functions. Empirical results assert that in the USA, the banking system creates fluctuations in the money sector and real economy as well through short-term interest rates

Positive Interest Rate, Stationary Economy, and Inefficiency

2020 ◽  
pp. 1-17
Author(s):  
Amir Kia
Keyword(s):  
Interest Rate ◽  
Transition Period ◽  
Pareto Efficiency ◽  
Rate Of Return ◽  
Price Ratio ◽  
Marginal Rate ◽  
Positive Rate ◽  
Short Run ◽  
Pareto Efficient ◽  
The Interest Rate

This chapter analyses the direct impact of a positive rate of interest (usury) on the production possibility curve. Usury under a stationary state creates inefficiency in the sense that the marginal rate of transformation is not equal to the price ratio. Over the short run Pareto efficiency appears when a transition period is considered and the rate of return moving from one state to another is endogenous and equals the rate of investment. In a non-stationary economy, when a positive rate of return (interest) is equal to the growth rate of the economy, there will be a Pareto-efficient equilibrium. But if the interest rate is exogenous to the system, usury exists, and then Pareto efficiency cannot be achieved under any state, either stationary or non-stationary.

scholarly journals The Interest Rate Effect on Private Saving: Alternative Perspectives

2019 ◽  
Vol 10 (01) ◽  
pp. 1950002 ◽  
Author(s):  
Joshua Aizenman ◽  
Yin-Wong Cheung ◽  
Hiro Ito
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Age Dependency ◽  
Output Volatility ◽  
The Real ◽  
Private Saving ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Rate Environment ◽  
The Interest Rate

Lowering the policy interest rate could stimulate consumption and investment while discouraging people from saving. However, such a move may also prompt people to save more to compensate for the low rate of return. Using the data of 135 countries from 1995 to 2014, we show that a low interest rate environment can yield different effects on private saving under different economic environments. The real interest rate affects private saving negatively if output volatility, old-age dependency, or financial development is above a certain threshold. Depending on a country’s specific economic circumstances, these effects are significant for the economy — a four-percentage point decline in the real interest rate, which is approximately the same as one standard deviation for China, would lead to a 1.52 percentage point increase in the Chinese private saving rate. Further, when the real interest rate is below 1.1%, greater output volatility would lead to higher private saving in developing countries.

Two Classics: Böhm-Bawerk's Positive Theory and Fisher's Rate of Interest Through Modern Prisms

1994 ◽  
Vol 16 (2) ◽  
pp. 202-228 ◽  
Author(s):  
Paul A. Samuelson
Keyword(s):  
Interest Rate ◽  
Time Preference ◽  
Positive Theory ◽  
Interest Theory ◽  
Net Productivity ◽  
The Interest Rate

Positive Theory of Capital (1889) is a classic which contains Eugen von Böhm-Bawerk's 1889 correct vision of how the interest rate might be determined by the interplay of systematic time preference (“impatience”) and time-phased technology's productivity. But he was not quite able to formulate his intuitive vision in terms that would satisfy today's persnickety jury of theorists. And indeed the classic Rate of Interest (1907) by his younger contemporary, Irving Fisher, seemed to be disagreeing with Böhm-Bawerk's treatment of time's net productivity; but, as Fisher was unable to make clear until 1930, he was objecting only to Böhm-Bawerk's formulation of the role of productivity in interest determination. In point of fact, Fisher, who was so long identified (wrongly, but understandably) as an “impatience theorist,” considered his own main contribution to interest theory to be his clarification of how the technological superiority of time-consuming processes cooperated in the determination of the equilibrium interest rate.

Sign in / Sign up

Export Citation Format

Share Document