scholarly journals The impact of fiscal and monetary policies on unemployment problem in Nigeria (managerial economic perspective)

2015 ◽  
Vol 5 (2) ◽  
pp. 101-109
Author(s):  
Nick Attamah ◽  
Anthony Igwe ◽  
Wilfred Isioma Ukpere
Keyword(s):  
Monetary Policy ◽  
Exchange Rates ◽  
Money Supply ◽  
Positive Relationship ◽  
A Priori ◽  
Government Expenditure ◽  
Unit Roots ◽  
Monetary Policies ◽  
The Impact ◽  
Unemployment Problem

This paper investigates the impact of fiscal and Monetary Policies on Unemployment Problem in Nigeria and covers the periods 1980 to 2013. To achieve this, fiscal policy was captured here by government expenditures and revenues respectively while monetary policy was proxied by broad Money Supply (M2), Interest and Exchange rates respectively. The methodology adopted was econometric analysis employing OLS techniques and unit roots of the series were examined using the Augmented Dickey-Fuller after which the co-integration tests was conducted using the Engle Granger approach. Error correction models were estimated to take care of the short run dynamics. It was found that while government expenditure had a positive relationship with unemployment problem in Nigeria, the result of government revenue was negative and insignificant on unemployment problem. For monetary policy, it was found that money supply and exchange rate had positive and significant impact while interest rate has only a positive relationship on unemployment problem in Nigeria. This meets the a priori expectation. The study also revealed that increases in interest and exchange rates escalate unemployment by increasing cost of production which discourages the private sector from employing large workforce. On the other hand, national productivity measured by real GDP had a negative and significant impact on unemployment rate in Nigeria. This paper recommends that for an effective combat to unemployment problem in Nigeria, there should be a systematic diversion of strategies, thus more emphasis should be laid on aggressively pursuing entrepreneurial development and increased productivity. Again government should aggressively focus on investment, employment generation and economic growth that has mechanism to trickle does to the masses.

scholarly journals ANALYSING THE IMPACT OF ECONOMIC POLICIES ON UNEMPLOYMENT AND POVERTY IN NIGERIA

2021 ◽  
pp. 78-95
Author(s):  
Felix Omene ◽  
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Unemployment Rate ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Policy Instruments ◽  
Economic Policies ◽  
Poverty Level ◽  
Monetary Policies ◽  
The Impact

This study is carried out to empirically examine the effect of economic policies on unemployment and poverty in Nigeria between 1970-2019. The persistent and high level of poverty in Nigeria accompanied by severe unemployment despite the adoption and implementation of various economic policies in terms of fiscal and monetary policies is the motivation behind this study. The objective of the study is to examine how effective economic policies have been in terms of fiscal and monetary policies in curbing unemployment and poverty incidence. The variables used are Poverty index (POV), Unemployment Rate (UMP), fiscal policy instruments in terms of Government expenditure (GEX), Tax and Public Debt, Monetary policy instruments in terms of monetary policy rate (MPR), interest rate (INR) and money supply (MS). Time series dynamic analysis was used to analyses the impact of these macroeconomic instruments on poverty and unemployment. The Auto Regressive Distributed Lag (ARDL) Model was used to examine the short-run, interim and long-run effect of economic policies on unemployment and poverty between 1970-2019. Preliminary test such as stationarity test, cointegration test and trend analysis were conducted before estimation. The evidences from various econometrics analyses from this study revealed that, macroeconomic policies such as money supply, government capital expenditure, unemployment rate and interest rate have a statistically significant impact on poverty level in Nigeria from 1970-2019. The implication of this is that an increase in money supply and government expenditure has a negative effect on poverty level but an increase in unemployment rate and inflation rate will lead to higher poverty level in Nigeria since unemployment rate has a positive and significant impact on poverty level. The recommendations made include; that, since government capital expenditure has a negative impact on poverty level, emphasis should be laid on increasing government capital expenditure especially those meant for development programs and projects to enhance employment which will in turn reduce poverty level in the country.

scholarly journals Investigating the Effects of Government Expenditure and Money Supply on Unemployment in Namibia

2020 ◽  
Vol 12 (4(J)) ◽  
pp. 73-83
Author(s):  
Wilhelmine Naapopye Shigwedha ◽  
Teresia Kaulihowa
Keyword(s):  
Money Supply ◽  
Government Expenditure ◽  
Policy Implications ◽  
Employment Creation ◽  
Monetary Policies ◽  
Policy Makers ◽  
Policy Interventions ◽  
Short Run ◽  
Effective Policy ◽  
Unemployment Problem

This paper examines how government expenditure and money supply affect unemployment in Namibia. It employs the ARDL and ECM estimation techniques to establish the underlying relationship for the period 1980-2018. The results support the hypothesis that government expenditure and money supply can be used to contain unemployment. Additionally, an evidence of both long and short-run causality from government expenditure and money supply to unemployment is found. Practical policy implications indicate that in order to effectively combat unemployment problem in Namibia, the study recommends that there is a  need for policy makers to ensure that the goal of employment creation is mainstreamed in all relevant fiscal and monetary policies responses in the country. Moreover, there is also a need to identify and propose policies that can help to do away with the lack of effective policy interventions

Effects of monetary policy on economic growth in Zimbabwe

GIS Business ◽  
2019 ◽  
Vol 14 (5) ◽  
pp. 64-95
Author(s):  
David Damiyano ◽  
Nirmala Dorasamy
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Money Supply ◽  
Relevant Literature ◽  
Government Expenditure ◽  
Impulse Response Functions ◽  
Explanatory Variables ◽  
Real Gdp ◽  
Long Run ◽  
The Impact

This research examines the hypothesis of money neutrality in Zimbabwe. After studying the relevant literature on the effects of changes in money supply on real variables, it outlines the research design for a macro-level study on the impact of changes in money supply on real variables. The hypothesis is that there is a positive relationship between money supply and real variables (GDP). The researcher used real GDP as the dependent variable whilst money supply (M3), interest rate and government expenditure were used as explanatory variables. A VAR model has been applied using the country’s macroeconomic data from 1990 to 2017 which was obtained from ZIMSTATS and World Bank Open Data website. Impulse response functions and variance decomposition were used to analyse the impact of the explanatory variables on real GDP. The results suggest that money positively affects real GDP in the short run but in the long it is insignificant in influencing real output. This means that in Zimbabwe, money is non-neutral in the long run, but it is neutral in the long run. Government expenditure has an insignificant influence on GDP both in the short and long run whilst interest rate has a positive effect on GDP in the long run. The recommendations which were given are that the government; should use expansionary monetary policy to increase real GDP, demonetise the bond note as well as the RTGS and adopting the Rand, curbing inflation through increasing production and ensuring transparency in the manner in which loans are given.

scholarly journals Impacts of Monetary Policy on Commercial Banks’ Profits: The Case of Vietnam

2017 ◽  
Vol 13 (8) ◽  
pp. 32
Author(s):  
Thanh Nhan Nguyen ◽  
Ngoc Huong Vu ◽  
Ha Thu Le
Keyword(s):  
Monetary Policy ◽  
Commercial Banks ◽  
Positive Impact ◽  
Monetary Policies ◽  
Significance Level ◽  
Doing Business ◽  
Panel Data Regression ◽  
Banking Market ◽  
Data Regression ◽  
The Impact

This paper mainly concentrates on examining the impact of monetary policy on commercial banks’ profit in Vietnam by using panel data regression. In our study, the data is collected from 20 commercial banks which were doing business in Vietnam’s banking market, ranging from 2007 to 2014 in annually frequency. Monetary base (MB), discount rate (DIS) and required reserve ratio (RRR) are used as proxies for monetary policy. Profit before tax (PROFIT) is used to represent commercial banks’ performance. The results show that there is a positive relationship between banks’ profits and monetary policies. Among those chosen variables representing SBV’s monetary policy, only MB has a significant positive impact on bank’s profit at the significance level of 10%. On this premise, the study recommends that MB should be one of the variables in the center of being concerned in the SBV’s policies regarding the banking performance and stability.

scholarly journals Effect of Money Supply on the Stock Market

2017 ◽  
Vol 65 (2) ◽  
pp. 465-472 ◽  
Author(s):  
Vladimír Pícha
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Money Supply ◽  
Policy Framework ◽  
Vector Error Correction ◽  
Flow Of Funds ◽  
Portfolio Balance ◽  
Vector Error ◽  
Long Run ◽  
The Impact

This paper observes effect of money supply on the stock market through the portfolio balance channel as a transmission mechanism of monetary policy. National flow of funds accounts, specifically assets from US households’ portfolios, represent a key data source. Johansen’s cointegration methodology is employed in the empirical part of the paper to analyze both short term and long term relationships among researched variables. Estimates of vector error correction model help to reliably quantify intensity of the effect. Results show money supply excercises influence on valuation of S&P 500 index with 6 months lag. The impact is also distinguishable in the long run, whereas all observed asset classes can positively influence price of S&P 500. Findings are then contextualized in the concluding part of the paper using a monetary policy framework.

scholarly journals Impacts of Monetary Policy on Inflation in Bangladesh

2012 ◽  
Vol 1 (2) ◽  
pp. 103-119
Author(s):  
Mohammad Nayeem Abdullah ◽  
Kamruddin Parvez ◽  
Rahat Bari Tooheen
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Consumer Price Index ◽  
Developed Countries ◽  
Open Market ◽  
Major Transitions ◽  
Classification Code ◽  
Inflation Rates ◽  
The Developed Countries ◽  
The Impact

The objective of this paper is to analyze and discuss the impacts of monetary policy on Bangladesh inflation, identify the major drawbacks of the policies in minimizing the inflation rate and suggest policy recommendations on some key issues of Bangladesh inflation. To estimate the effects of the monetary policy in Bangladesh, at first the impact of different monetary policy tools used by the “Central Banks” of the developed countries have been reviewed. Next, the impact of the monetary policy of Bangladesh Bank and government have been analyzed for which the data on money supply, growth of the GDP, changes in the price level, and changes in the unemployment rate have been quantitatively analyzed. We mainly used Consumer Price Index to determine the level on inflation in Bangladesh. Moreover, our study focuses on data collected from the 1950-2012, mainly focusing our study from the period of 2000-2012 as major transitions have been observed in the economy during the 12 years. We have further analyzed whether there is any correlation between (i) inflation rates and money supply, and (ii) inflation rates and growth of GDP. On the basis of the outcome of the qualitative and quantitative analysis, in the end findings and conclusion have been drawn. We have found the correlation, the impacts of monetary policy and inflation, their drawbacks and possible solutions such as independence of the monetary policy from the fiscal policy and enhancing the transparency, communication and signaling effect of policy moves, keeping the broad money in line with the estimated real GDP growth, borrowing from non-bank sources, and control money supply through various open market operations. Due to lack of access to sufficient data, some of our work is based on hypothesis and models. So some data vary according to the model being used. Lastly, even though, many works have been done from the perspective of developed and other developing countries, much work has not been carried out to establish the relationship between monetary policy and inflation in Bangladesh. GEL Classification Code: E31; E42; E50

scholarly journals An econometric analysis of the effectiveness of fiscal and monetary policies in India

2021 ◽  
Author(s):  
Anand Nadar
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Money Supply ◽  
Series Data ◽  
Monetary Policies ◽  
Indian Economy ◽  
Long Run ◽  
Short Run ◽  
Bound Test

This study investigatesthe effectiveness of fiscal policy and monetary policy in India. We collected thetime series data for India ranging from 1960 to 2019 from World Development Indicator (WDI). Weapplied the bound test co-integration approach to check the long-run relationship between fiscalpolicy, monetary policy, and economic growth in the context of Indian economy. The short-run andlong-run effects of fiscal policy and monetary policy have been estimated using ARDL models. Theresults showed that there is a long-run relationship between fiscal and monetary policies witheconomic growth. The estimated short-run coefficients indicated that a few immediate short runimpacts of fiscal and monetary policies are insignificant. However, the short-run impacts becomesignificant as time passes. The long-run results suggested that the long-run impact of both fiscal andmonetary policies on economic growth are positive and significant. More specifically, the GDP levelincreases if the money supply and government expenditure increase (Expansionary fiscal andmonetary policies). On the other hand, the GDP level decreasesif the money supply and governmentexpenditure decrease (contractionary fiscal and monetary policies). Therefore, this studyrecommends to use expansionary policies to spur the Indian economy.

scholarly journals Monetary Policy and Liquidity of Vietnam’s Stock Market

2016 ◽  
Vol 23 (02) ◽  
pp. 02-21
Author(s):  
Ly Tran Thi Hai
Keyword(s):  
Time Series ◽  
Monetary Policy ◽  
Stock Market ◽  
Money Supply ◽  
Industrial Production ◽  
Market Liquidity ◽  
Var Model ◽  
Market Returns ◽  
Liquidity Measures ◽  
The Impact

This study investigates the impact of monetary policy on liquidity of Vietnam’s stock market from September 2007 to November 2014. Time series of liquidity are determined by monthly liquidity data for 643 enterprises in the surveyed period. Two variables of the monetary policy, including growth in money supply and interbank rate, are employed in VAR model along with four different measures of market liquidity. The results show that unexpected variance in the two monetary policy variables has no significant impact on the market liquidity, which, in turn, may be improved by the positive shocks of market returns, inflation, and growth in industrial production. Market variance does produce certain effects, but discrepancies occur in the signs of various liquidity measures.

The Impact of US Monetary Policy and Other External Shocks on the Hong Kong Economy

2019 ◽  
pp. 239-260
Author(s):  
Hongyi Chen ◽  
Andrew Tsang
Keyword(s):  
Monetary Policy ◽  
Hong Kong ◽  
Financial Stability ◽  
Mainland China ◽  
External Shocks ◽  
Monetary Policies ◽  
Macroprudential Policies ◽  
Loan Quality ◽  
The Impact ◽  
Us Monetary Policy

This chapter uses the factor-augmented vector autoregression framework to study the impact on the Hong Kong economy of the diverging monetary policies by the Fed, the European Central Bank (ECB), and the Bank of Japan (BoJ), as well as the slowdown of the Mainland economy. The empirical results show that shocks in US monetary policy rate mainly affect interest rate-sensitive sectors in Hong Kong and that monetary easing from the ECB and the BoJ somewhat offsets the impact of tightening of the Fed. Real variables such as real GDP growth and the unemployment rate are more sensitive to the economic slowdown in Mainland China. However, Hong Kong’s financial stability, particularly with regard to loan quality, banks’ capital and liquidity, is well maintained by macroprudential policies, suggesting that Hong Kong’s financial system is resilient to external shocks.

scholarly journals Performance of Stock and Treasury Bills under Inflation and Floating: Evidence from Egypt

2018 ◽  
Vol 10 (6) ◽  
pp. 160
Author(s):  
Osama Wagdi ◽  
Yasmin Tarek ◽  
Nihad Edres
Keyword(s):  
Monetary Policy ◽  
Coefficient Of Variation ◽  
Positive Relationship ◽  
Inflation Rate ◽  
Common Stock ◽  
Treasury Bills ◽  
Average Return ◽  
Time Period ◽  
Strong Positive Relationship ◽  
The Impact

The aim of this study is comparing the performance of common stock & treasury bills, according to the central bank of Egypt and their monetary policy during the time period between “1994-2017”, using descriptive & inferential statistical methods. The Study concluded that there is a strong positive relationship between inflation rate & returns of Egyptian treasury bills, as the same relation as with floating Egyptian pound.in addition, the study found the impact of Inflation and Floating on the return of Egyptian T-bills, but don’t found this impact on the return of Egyptian common stock. Finally, the study founds the same average return but a different at variances of this return & the Coefficient of variation.

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