scholarly journals Investment Decision In Micro, Small And Medium Enterprises In Indonesia*

2013 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Siti Aisyah Tri Rahayu
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Cash Flow ◽  
Investment Decision ◽  
Inflation Expectations ◽  
Real Sector ◽  
Debt Ratio ◽  
The Real ◽  
Internal Capital ◽  
The Impact

The purpose of this study are: First, to analyze is there any significant influence among debt ratio, internal capital, cash flow, inflation expectations and the expectations of rupiah exchange rate against the decisions of businessmen in the real sector to invest or not to invest; Second, to analyze the impact of the variables perception mortgage interest rates, perceptions of bank regulation, internal capital and cash flow on debt ratio of the real sector (leverage). Investment decision model is estimated using logit models. The results of regression estimates the overall good for business and risk analysis for financial risk shows that almost all explanatory variables in the equation are statistically significant. There are three variables have a positive influence on the investment decisions taken by the businesses i.e. the debt ratio, cash flow and exchange rate expectations.

scholarly journals Government Budget Deficits and Exchange Rate Determination: Evidence from Pakistan

1992 ◽  
Vol 31 (4II) ◽  
pp. 871-882 ◽  
Author(s):  
Nadeem A. Burney ◽  
Naeem Akjitar
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Real Exchange Rate ◽  
Relative Effectiveness ◽  
Policy Instrument ◽  
Nominal Exchange Rate ◽  
Relative Price ◽  
Budget Deficits ◽  
The Real ◽  
The Impact

It is now generally accepted that the real exchange rate is a key relative price in an econom/ Changes in the real exchange rate influence foreign trade flows, balance of payments, the structure and level of production, allocation of resources, etc. While the real exchange rate is an endogenous variable that responds to both exogenous as well as policy-induced shocks, the nominal exchange rate is usually taken as a policy instrument. The two rates, however, are found to be related to each other. 2 For effective policy-making, it is imperative to have some idea about different factors that influence the real exchange rate. Equally important is the knowledge of the manner in which the real exchange rate responds to changes in the exogenous variables. While there is a general consensus that the impact of various exogenous shocks on the exchange rate is transmitted through four broad channels, namely, (i) absolute prices, (ii) relative prices, (iii) income, and (iv) interest rates, the relative importance of each of these channels is found to vary across countries. In general, it depends on the degree of openness of the economy and the relative effectiveness of the fiscal and the monetary sectors within a country.

scholarly journals STANDARDIZATION AS A FACTOR OF REDUCING CREDIT RISKS OF INVESTMENT PROJECTS

2019 ◽  
pp. 145-152
Author(s):  
Aleksandr Evgenievich Ushanov
Keyword(s):  
Interest Rates ◽  
Weighted Average ◽  
Bank Lending ◽  
Product Line ◽  
Necessary Condition ◽  
Real Sector ◽  
The Real ◽  
Investment Projects ◽  
The Impact

Investment bank lending to enterprises of the real sector of the economy is an important source of long-term financial resources, a necessary condition for the progressive, innovative development of the economy. The increase of credit debt by14.3% for a period of 1-3 years and by 21.2% for a period of more than 3 years in the last time is the evidence of emerging positive course in the volume of financing of investment projects of companies. There have been given data on weighted average interest rates of banks on lending and deposit operations in January and May in 2018. Despite the positive dynamics of the volume of long-term lending to the real sector of the economy by Russian commercial banks, there are still factors constraining this process: specific risks inherent in this product line, as well as management errors in the evaluation of investment projects. The risks include the factors related to the prospects of development of the borrower's business, the future state of the industry. Management errors include insufficient consideration of the impact of macroeconomic factors (inflation, etc.), incorrect calculations of the initiators' participation in the project, etc. It has been stated that risks and errors can be minimized by using a process approach to management, in which each structural unit of the credit institution ensures implementation of specific business processes, in which it participates. It has been inferred that one of the effective ways to improve the business process of lending to investment projects in order to reduce transaction risks is its standardization. There have been listed several quality standards of banking processes approved by the Association of Russian Banks. It has been proposed to introduce the Standard of the process of lending investment projects into the practice of banks. There has been worked out the matrix of requirements for the components of the process reflecting the content of the current practice of leading credit institutions working in the field of investment lending.

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

scholarly journals Mobile Money Use: The Impact of Macroeconomic Policy and Regulation

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 51
Author(s):  
Lorna Katusiime
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Financial Innovation ◽  
Macroeconomic Policy ◽  
Mobile Money ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper examines the effects of macroeconomic policy and regulatory environment on mobile money usage. Specifically, we develop an autoregressive distributed lag model to investigate the effect of key macroeconomic variables and mobile money tax on mobile money usage in Uganda. Using monthly data spanning the period March 2009 to September 2020, we find that in the short run, mobile money usage is positively affected by inflation while financial innovation, exchange rate, interest rates and mobile money tax negatively affect mobile money usage in Uganda. In the long run, mobile money usage is positively affected by economic activity, inflation and the COVID-19 pandemic crisis while mobile money customer balances, interest rate, exchange rate, financial innovation and mobile money tax negatively affect mobile money usage.

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.

Estimation of fiscal rule impact on Russian ruble equilibrium exchange rate

2021 ◽  
pp. 70-84
Author(s):  
D. A. Menshikh
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Oil Price ◽  
Real Effective Exchange Rate ◽  
Alternative Methods ◽  
Equilibrium Exchange Rate ◽  
The Real ◽  
Equilibrium Exchange ◽  
Fiscal Rule ◽  
The Impact

This paper describes a new approach that makes it possible to assess the impact of foreign exchange interventions implemented under the fiscal rule on the Russian ruble equilibrium exchange rate. The essence of the approach is to quantify the impact of foreign exchange interventions carried out within the framework of the fiscal rule on the balance of supply and demand of foreign exchange, and to reflect this influence in macroeconomic models using the “effective” oil price indicator. The article describes in detail the calculation of this indicator. The advantage of using the “effective” oil price indicator compared to alternative methods lies in the efficiency (the ability to apply for monthly data), simplicity (the possibility of using for scenario forecasting of the exchange rate), as well as the flexibility of the method (the possibility of taking into account periods of suspension of the fiscal rule and deferred purchases). The current gap in the real effective exchange rate of Russian ruble was calculated based on the data for February 2008 — October 2019. The assessment of the contribution of the fiscal rule to the equilibrium value of the real exchange rate was about 2 pp., at the end of 2019 Russian ruble was overvalued.

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.

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