Relationship between Conventional and Islamic Interbank Rates of a Dual Banking System in Malaysia, Middle East, and Western Countries

The purpose of this research is to investigate the relationship between conventional monetary policy rate (CIMMR) and Islamic monetary policy rate (IIMMR) in Malaysia and selected Middle East countries and Western countries. This study runs a panel Cointegration test, a panel VECM and Wald test to examine the relationship and causal effect between the CIMMR and IIMMR for the sample of six countries starting from 2009 until 2018 based on monthly and yearly basis dataset. This study finds that CIMMR and IIMMR, in monthly and yearly basis, are both cointegrated and have a long-run relationship amongst them. Our findings confirm that there is a long run causality effect between conventional and Islamic monetary policies based on monthly interbank rates. Our findings further confirm that there is a short run causality effect between conventional and Islamic monetary policies based on yearly interbank rates. We confident that the implication of Islamic interbank rates in the implementation of monetary policy within a dual system is very high as proven by taking into consideration a different regions as samples for this panel study. To the best of the authors’ knowledge, this would greatly contribute to the body of knowledge in the field of monetary policy.

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The Long-Run Effects of the Fed’s Monetary Policy on the Dynamics among Major Asset Classes

International Journal of Management and Economics ◽

10.1515/ijme-2016-0016 ◽

2016 ◽

Vol 51 (1) ◽

pp. 9-19

Author(s):

Jia Miao

Keyword(s):

Monetary Policy ◽

Financial Markets ◽

Financial Assets ◽

Monetary Policies ◽

Real Estate Markets ◽

Long Run ◽

Cointegration Tests ◽

Asset Classes ◽

The Impact ◽

The Relationship

Abstract It is well known that government monetary policies significantly impact financial markets. There have been numerous studies examining the relationship between monetary policy and the prices of financial assets, including equities and bonds. Little, however, has been done to explore the impact of major financial assets on changes in monetary policies. This study examines the impacts of the Federal Reserve’s monetary policy on the dynamics of major financial assets in the U. S. For this purpose, cointegration was tested for between equities, bonds and real estate markets in the period 1980 to 2014, whereas the U. S. monetary base M2 was used as an exogenous variable. Our cointegration tests suggest that the exogenous component of the U. S. M2 significantly affected the interaction among major U. S. financial assets. These findings have implications for both policymakers and market practitioners in terms of portfolio allocation rules.

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

10.31219/osf.io/39s7a ◽

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.

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Controlling Money Supply And Price Level With Unknown Regime Shifts: The Case Of Chile

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v24i2.1360 ◽

2011 ◽

Vol 24 (2) ◽

Author(s):

Abdulnasser Hatemi-J ◽

Manuchehr Irandoust

Keyword(s):

Monetary Policy ◽

Steady State ◽

Money Supply ◽

Price Level ◽

Regime Shifts ◽

Font Size ◽

Long Run ◽

Causality Tests ◽

The Relationship ◽

Second Period

This paper investigates the relationship between money supply and price level using new tests for cointegration with two unknown regime shifts and bootstrap causality tests. Quarterly Chilean data from 1973: I to 2006: III is used. We find empirical evidence that the variables establish a long-run steady state relationship in the presence of two regime shifts. The elasticity of price level with regard to money supply is close to unity during the first period (prior to 1978: II). The elasticity is reduced during the second period (1978: III-1986: I) and it is also reduced for the remaining period but the reduction is smaller. We also conducted bootstrap causality tests that reveal the following: in the first sub-period there is bidirectional causality between the underlying variables. In the last two sub-periods money supply causes the price level only. This implies that money supply is weakly exogenous concerning the price level and that the monetary authority had enough independence to execute an active monetary policy in Chile.

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INFLATION RISK AND OPTIMAL MONETARY POLICY

Macroeconomic Dynamics ◽

10.1017/s1365100509080110 ◽

2009 ◽

Vol 13 (S1) ◽

pp. 58-75 ◽

Cited By ~ 3

Author(s):

William T. Gavin ◽

Benjamin D. Keen ◽

Michael R. Pakko

Keyword(s):

Monetary Policy ◽

Term Structure ◽

New Keynesian ◽

Optimal Monetary Policy ◽

Monetary Policies ◽

Inflation Risk ◽

Long Run ◽

Order Of Magnitude ◽

New Keynesian Models ◽

Sticky Wages

This paper shows that the optimal monetary policies recommended by New Keynesian models still imply a large amount of inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority adopts the optimal policy. When the monetary policy rules are modified to include some weight on a price path, the economy achieves equilibria with substantially lower long-run inflation risk. With either sticky prices or sticky wages, a price path target reduces the variance of inflation by an order of magnitude more than it increases the variability of the output gap.

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Inflation, market structure, and innovation-driven growth with distinct cash constraints

Oxford Economic Papers ◽

10.1093/oep/gpaa042 ◽

2020 ◽

Author(s):

By Chien-Yu Huang ◽

Juin-Jen Chang ◽

Lei Ji

Keyword(s):

Growth Rate ◽

Monetary Policy ◽

Numerical Analysis ◽

Market Structure ◽

Schumpeterian Growth ◽

Long Run ◽

Short Run ◽

Endogenous Market Structure ◽

The Relationship ◽

D Investment

Abstract This article explores the effects of monetary policy (inflation) in a Schumpeterian growth model with an endogenous market structure and distinct cash (or cash-in-advance, CIA) constraints on consumption, production, and two types of R&D investment—quality-improving and variety-expanding R&D. We show that the relationship between inflation and growth is negative if quality-improving R&D (incumbent) is subject to the CIA constraint, but positive if variety-expanding R&D (entrant) is subject to the CIA constraint. Inflation has no effect on growth as consumption or production is subject to the CIA constraint. In addition, the firm size may either increase or decrease in response to inflation depending on which type of R&D is constrained by cash. With all CIA constraints properly imposed, a likely scenario in our numerical analysis shows that a rise in inflation leads the growth rate to exhibit a decrease in the short run but an increase in the long run. Moreover, our welfare analysis shows that Friedman’s rule, in general, is not socially optimal.

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Work-related extended availability, psychological detachment, and interindividual differences: A cross-lagged panel study

German Journal of Human Resource Management Zeitschrift für Personalforschung ◽

10.1177/2397002221992549 ◽

2021 ◽

pp. 239700222199254

Author(s):

Eberhard Thörel ◽

Nina Pauls ◽

Anja S Göritz

Keyword(s):

Longitudinal Research ◽

Panel Study ◽

Health Issues ◽

Negative Effects ◽

Interindividual Differences ◽

Work Related ◽

Psychological Detachment ◽

Long Run ◽

Indirect Relationship ◽

The Relationship

Work-related extended availability (WREA) refers to employees being available for work-related matters during leisure time. Although studies have suggested negative effects of WREA on employee health, there is a scarcity of longitudinal research especially studies trying to disentangle how WREA may impact health. Moreover, there are only few studies dealing with interindividual differences in the effects of WREA on health. These aspects are crucial as they can help laying a foundation for interventions that help coming to terms with negative effects of WREA. The current study implemented a cross-lagged panel design with three waves to clarify how effects of WREA unfold and whether there are interindividual differences. Based on the stressor-detachment-model and person-environmental-fit theory, we proposed that (1) the relationship between WREA and sleep as well as between WREA and exhaustion is mediated by psychological detachment, and (2) that the relationship between WREA and the outcomes is moderated by segmentation preferences. In total, 528 employees (320 women, mean age = 48 years) participated in the study. Although there was a cross-lagged negative association between WREA and detachment, we did not find an indirect relationship between WREA and either sleep or exhaustion via detachment. Moreover, we did not find evidence for interindividual differences in the effects of WREA on any of the outcomes. On the basis of the negative cross-lagged relationship between WREA and detachment from work, we recommend organizations to discourage employees from WREA, because failure to regularly recover from work may lead to health issues in the long run.

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THE RELATIONSHIP BETWEEN MONETARY POLICY AND PRIVATE SECTOR CREDIT IN SADC COUNTRIES

Eurasian Journal of Economics and Finance ◽

10.15604/ejef.2021.09.01.004 ◽

2021 ◽

Vol 9 (1) ◽

pp. 46-54

Author(s):

Vikela Liso Sithole ◽

◽

Tembeka Ndlwana ◽

Kin Sibanda ◽

◽

...

Keyword(s):

Monetary Policy ◽

Gross Domestic Product ◽

Private Sector ◽

Money Supply ◽

Sustainable Growth ◽

Domestic Product ◽

Distributed Lag ◽

Long Run ◽

The Impact ◽

The Relationship

This paper empirically examined the relationship between monetary policy and private sector credit in the Southern African Development Community (SADC) group of countries using a panel autoregressive distributed lag (ARDL) co-integration technique for the period from 2009 to 2018. The Hausman test result indicated that the null hypothesis of long-run homogeneity cannot be rejected and hence we accept the pooled mean group estimators (PMGE) as a consistent and efficient estimator. The PMGE results showed that credit to the private sector and gross domestic product have a positive and statistically significant long-run impact on money supply. The impact of credit to the private sector on money supply is shown by the results to be statistically significant and positive both in the short and long run. The impact of gross domestic product on money supply was found to be statistically significant positive in the long run while positive but insignificant in the short run. The study recommends policy attention that is directed towards the appetite for accelerated growth, investment, and employment in the SADC region but more importantly with more regard to the establishment of sustained macroeconomic stability as a precondition to sustainable growth and for the creation of monetary union in the region.

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Interconection and Local Wisdom of Malay and Arabs Ulamas Works: Study on Malay and Arabic Manuscripts’ Papers

Al-Qalam ◽

10.31969/alq.v24i1.464 ◽

2018 ◽

Vol 24 (1) ◽

pp. 1

Author(s):

Fakhriati Fakhriati

Keyword(s):

Middle East ◽

Southeast Asia ◽

Historical Context ◽

Historical Background ◽

Diplomatic Relation ◽

Historical Knowledge ◽

Historical Approach ◽

Western Countries ◽

Almost All ◽

The Relationship

Malay and Arabs are two continents, located in different area, Southeast Asia and Middle East. Historically, writers as ulamas (religious prominent figures) tended to use watermarked papers for writing many things both related to religious, historical knowledge, and also their experience. Looking at the manuscripts existing nowadays, almost all Malay and Arabic manuscripts’ papers have unique and similar watermark images and countermark inside. It cannot be denied that historical background and context appeared behind the papers. Historically, the relationship among the countries since the coming of Islam to Malay -- that was in Aceh at the first -- gave the effect of produced and using the papers. Trade and diplomatic relation can be assumed as the biggest factor taken places in this aspect. Besides, Western countries also took important role in exporting their paper to other countries. In addition, they had colonized some Muslims countries both Southeast Asian and Middle East. As the most popular producers of watermark images, Western countries also exported their papers to other countries, including their colonized countries. This paper tries to elaborate ulamas’ paper in these two nations in its similarity and diversity to find local wisdom inside. Thereafter, to analyze the relationship among the countries is another focus of this paper. This paper tries to use Philological, codicological, and socio-historical approach in dealing with the content and physics of the manuscripts, and its historical context.

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Energy Consumption and Ecological Footprint in the World’s Major Suppliers of Crude Oil: Does Difference in Oil Production Status Between Sub-groups Count?

10.21203/rs.3.rs-480564/v1 ◽

2021 ◽

Author(s):

Oluwasegun Babatunde Adekoya ◽

Joshua Kolade Olabode

Keyword(s):

Energy Consumption ◽

Middle East ◽

Environmental Degradation ◽

Environmental Economics ◽

Ecological Footprint ◽

Energy Resources ◽

Middle East Countries ◽

Long Run ◽

The Impact ◽

Country Specific

Abstract The need to maintain quality environment despite the increasing human activity and pressure on energy resources remains a topical issue in the field of Environmental Economics. However, we observe that the impact of energy consumption on ecological footprint in the Organization of Petroleum Exporting Countries (OPEC) has not received keen attention in the literature. This study thus delves into the nexus for the country group. For a more robust policy bearing, we partition the countries into Middle-East and non-Middle-East members because of their huge energy supply and consumption differences. Summarizing the results, energy consumption increases environmental degradation across all samples. However, despite the Middle-East countries being the highest per capita energy consumers, their energy consumption contributes less to environmental degradation compared to the non-Middle-East countries. For completeness, we report the long-run country-specific estimates and find that only in Congo is environmental quality enhanced by energy consumption.

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