The Impact of Member Bank Reserves upon the Money Supply

1963 ◽  
Vol 29 (3) ◽  
pp. 199
Author(s):  
Robert P. Black
Keyword(s):  
Money Supply ◽  
Bank Reserves ◽  
Member Bank ◽  
The Impact

Analysis of Impact on Chinese Money Supply Caused by Funds Outstanding for Foreign Exchange

2016 ◽  
Vol 2 (08) ◽  
Author(s):  
Li Tan ◽  
Hua Deng
Keyword(s):  
Money Supply ◽  
Empirical Research ◽  
Foreign Exchange ◽  
The Impact

This paper did an empirical research on the impact of foreign exchange on the money supply, using Johansen co-integration testand getting a conclusion that the actions are in the same direction.

Money Multiplier Bias Due to Informal Sector: An Extension of the Existing Money Multiplier

2021 ◽  
pp. 227797872097988
Author(s):  
Khurrum S. Mughal ◽  
Friedrich G. Schneider ◽  
Faheem Aslam ◽  
Alishba Tahir
Keyword(s):  
Money Supply ◽  
Informal Sector ◽  
Informal Economy ◽  
Economic Policies ◽  
Official Statistics ◽  
Jel Codes ◽  
Money Multiplier ◽  
Multiplier Effect ◽  
The Impact

To demonstrate the impact of informal economy on the official money multiplier in currency supply, we present an extension of the basic money multiplier model. The influence of economic policies may differ if they are based only on official statistics without considering the informal sector. Since most of the activities in informal sector are hidden from authorities, it is widely assumed that these activities are based on cash transactions, a part of total currency that cannot be attracted towards deposits due to the holder’s fear of prosecution and taxation, etc. Therefore, it is expected that such currency holdings can give biased results by playing a role in the money multiplier, a phenomenon that is usually ignored while attempting to alter money supply. The article also indicates that because of informal sector, the currency deposit ratio in the money multiplier is smaller than expected (depending on size of the informal sector), leading to a larger multiplier effect. JEL Codes: E26, E51, O17

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 The Impact of Financial Deepening on Economic Growth in Nigeria (1981-2018)

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Interest Rates ◽  
Money Supply ◽  
Commercial Banks ◽  
Financial Sector ◽  
Financial Deepening ◽  
Growth Data ◽  
Main Research ◽  
The Impact

Different academics and experts have acknowledged that developing the financial sector positively impacts economic growth by increasing productivity, progress and national investment. Expanding the financial sector allows financial intermediaries to carry out functionalities of deploying, aggregating and directing a country’s savings into an investment which contributes to domestic progression. This research explores the effect of financial deepening on Nigeria’s growth for 38 years covering 1981- 2018. The main research goals were to investigate the linkages among time and savings deposit of commercial banks, money supply and credit to the private sector on the economy’s growth. Data was obtained from CBN Bulletin different issues and analyzed using Autoregressive Distributed Lag. From the result of analysis, we found out that long run relationship existed but no regressor was found to be significant. Credit to the private sector to GDP was inversely related to GDP growth whereas money supply to GDP had positive relations with economic growth rate, time and savings deposits in commercial banks negatively affected national growth. Policies favoring credit lending to the private sector should be encouraged by stakeholders in the economy, for instance, higher savings interest rates would encourage more savings. More importantly, policies should be enacted to make sure that savings are transmitted into productive investments that can yield financial deepness

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 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.

scholarly journals EFEK KETERBUKAAN PERDAGANGAN PADA VOLATILITAS NILAI TUKAR

2019 ◽  
Vol 10 (1) ◽  
pp. 38-45
Author(s):  
Wayrohi Meilvidiri ◽  
Syahruddin Syahruddin ◽  
Romualdus Turu Putra Maro Djanggo
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Trade Openness ◽  
Exchange Rate Volatility ◽  
Normality Test ◽  
Lm Test ◽  
Exchange Rate Movements ◽  
Negative Effect ◽  
The Exchange Rate ◽  
The Impact

This study uses the q to q dataset for the period 2011-2018, to examine the effect of trade openness on the exchange rate, on the other hand variable money supply, inflation and GDP growth and high-low exchange rates (dummy) will smooth the impact of shocks to the exchange rate . Using the OLS econometric estimator to see the effect of variables and the ARCH method to measure the uncertainty of exchange rate movements. Estimation results show that trade openness (open trade index); the money supply (money supply) and the high-low peak value of the exchange rate have a significant positive effect while the growth variable has a significant negative effect on exchange rate volatility. The LM test simultaneously found ARCH in residual data in lag 1 and lag 2. The normality test found abnormal residuals, while the residual heteroscedasticity test showed no ARCH problems in the last residuals.

scholarly journals Testing for Causality between Oil Prices and Money Supply in Saudi Arabia (Note 1)

2020 ◽  
Vol 6 (4) ◽  
pp. p58
Author(s):  
Moayad Al Rasasi, PhD ◽  
John H. Qualls, PhD ◽  
Sultan Almutairi
Keyword(s):  
Causal Relationship ◽  
Money Supply ◽  
Oil Prices ◽  
Saudi Arabian ◽  
Causality Analysis ◽  
Price Shocks ◽  
Monthly Data ◽  
Causality Relationship ◽  
The Impact ◽  
Fiscal And Monetary Policy

The impact of oil price shocks on a country’s economy has been well studied in the economic literature. However, until now, articles analyzing the impact of these shocks on the Saudi Arabian economy have been relatively sparse. This paper attempts to shed some light on this important topic by examining the causal relationship between oil prices and an important monetary variable, the M3 (broad-based) money supply. Monthly data going back to 1982 were used in this study, which employs unit root tests and Granger causality analysis to test whether there is a causal relationship or not. No discernable causality relationship was found; this lack of such link leads the authors to conclude that this may be due to the prudent and stable fiscal and monetary policy on the part of the Kingdom’s government and its central bank, the Saudi Arabian Monetary Authority (SAMA).

The Impact of Money Demand Motivation on Money Supply Indonesia

2021 ◽  
Vol 3 (1) ◽  
pp. 10-16
Author(s):  
Arin Jannah Dinonasih ◽  
Keyword(s):  
Money Supply ◽  
Money Demand ◽  
Least Squares Method ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Significant Negative Relationship ◽  
Precautionary Motive ◽  
The Impact ◽  
Ordinary Least Squares Method ◽  
Annual Period

This study aims to investigate the impact of money demand motive on a money supply based on keyness theory. The method used in this study is the ordinary least squares method with an annual period from 2011 to 2020. We find that In Indonesia, the money demand motive has a significant effect on money supply where the transaction motive has a significant negative relationship with the money supply. A precautionary motive has a significant positive correlation with the money supply. The motive of speculation has a significant positive relationship with the money supply.

The Impact of Social Media on Customer Engagement with U.S. Banks

2017 ◽  
pp. 154-172 ◽  
Author(s):  
Arturo Haro-de-Rosario ◽  
Laura Saraite ◽  
Alejandro Sáez-Martin ◽  
María del Carmen Caba-Pérez
Keyword(s):  
Social Media ◽  
Comparative Analysis ◽  
Federal Reserve ◽  
Banking Sector ◽  
Customer Engagement ◽  
Citizen Engagement ◽  
Member Bank ◽  
The Impact ◽  
The U.S

This chapter has two main aims. First, to investigate the Facebook practices used in the U.S. banking sector with the aim of enhancing customer engagement; second, to perform a comparative analysis of the use of Facebook in this respect, among different U.S. banks. In this comparative analysis, we apply the Federal Reserve charter classification (Nationally chartered member bank, State-chartered member bank and State-chartered nonmember bank). The findings of this study contribute significantly to our understanding of the influence of social media in enhancing customer engagement. Banks, and their community managers in particular, can make use of the conclusions drawn in this study to develop future strategies to foster citizen engagement via Facebook.

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