scholarly journals Fiscal and Monetary Policies in Nigeria: Key Aspects, Performance, and Policy Options

2018 ◽  
Vol 12 (2) ◽  
pp. 2804-2818
Author(s):  
Adesola Ibironke
Keyword(s):  
Monetary Policy ◽  
Oil Price ◽  
Fiscal Deficit ◽  
Fiscal Policies ◽  
Policy Options ◽  
Fiscal Discipline ◽  
Monetary Policies ◽  
Fiscal Rule ◽  
Key Aspects

This paper reviews key aspects of Nigeria’s fiscal and monetary policies with the aim of examining the performance of the policies. The paper provides a synthesis of key facts and draws policy conclusions which include the following: (i) fiscal policies such as the oil-price-based fiscal rule introduced in 2004 have increased fiscal discipline and reduced fiscal deficit in Nigeria, hence the policies should be maintained; and (ii) compared to the period of direct or controlled monetary policy approach, monetary policy has performed better in Nigeria under the market-based approach introduced in 1993, therefore the latter approach should be maintained.

Optimal macroprudential regulation tools

2020 ◽  
Vol 26 (4) ◽  
pp. 774-795
Author(s):  
I.R. Ipatyev
Keyword(s):  
Monetary Policy ◽  
Financial Institutions ◽  
Policy Instruments ◽  
Financial Policy ◽  
Policy Options ◽  
Macroprudential Policy ◽  
Monetary Policies ◽  
Credit Cycles ◽  
Systemic Risks ◽  
Optimal Set

Subject. This article examines the hypothesis that microprudential and monetary policies are not able to provide measures to prevent excessive lending and guarantee the ability of financial institutions to cope with the growing credit bubble. Objectives. The article examines approaches to identifying viable macroprudential policy options and an optimal set of regulation instruments. Methods. For the study, I used a content analysis and generalization. Results. The article presents some results of the assessment of certain macroprudential requirement instruments. Conclusions. The study shows that some macroprudential policy tools can reduce systemic risks associated with credit cycles. Monetary policy alone is not able to effectively withstand the credit bubble risk. All financial policy instruments must be taken and considered together, as they work closely together.

Monetary Policy Operations of Central Banks in the E7 Economies

2020 ◽  
pp. 65-91
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Crucial Role ◽  
Policy Instruments ◽  
Active Role ◽  
Central Banks ◽  
Central Banking ◽  
Fiscal Policies ◽  
Monetary Policies ◽  
Sustainable Economic Growth

Both monetary and fiscal policies have a crucial role in the financial markets of the countries. In this framework, policies can be used for mainly two different purposes, which are contractionary and expansionary policies. Hence, it can be said that monetary policies play a key role especially for the emerging economies. The main reason is that these are the economies that aim to be a developed economy. In order to reach this objective, they aim to make investment to obtain sustainable economic growth. Similar to this aspect, this chapter aims to identify different monetary policy operations of the central banks. Thus, various monetary policy instruments are explained. After this issue, necessary information is given related to the central banking operations of E7 economies. As a result, it is defined that central banks of these countries play an active role especially during the recession period.

The Efficacy of Fiscal Vs Monetary Policies in the Asia-Pacific Region: The St. Louis Equation Revisited

2021 ◽  
pp. 097226292110541
Author(s):  
Ghanashyama Mahanty ◽  
Dwijendra Nath Dwivedi ◽  
Badri Narayanan Gopalakrishnan
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Exchange Rate ◽  
The Other ◽  
Asia Pacific ◽  
Fiscal Policies ◽  
Pacific Region ◽  
Relative Importance ◽  
Asia Pacific Region ◽  
Monetary Policies

This study’s main objective is to assess the relative importance of fiscal and monetary policies on the Asia-Pacific Economies. We have empirically investigated both the original St. Louis equation and its expanded version to study the comparative relevance of one over the other. Our empirical results indicate that both monetary and fiscal policies are essential in promoting economic growth. In both models, monetary policy is more effective than fiscal policy. In the expanded St. Louis model, exports, exchange rate and inflation variables substantially impact gross domestic product than the conventional monetary and fiscal measures.

scholarly journals Are Unconventional Monetary Policy and Large Scale Fiscal Policy Effective?: The Case of Japan

2017 ◽  
Vol 3 (2) ◽  
pp. 42
Author(s):  
Yutaka Kurihara
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Exchange Rates ◽  
Stock Prices ◽  
Large Scale ◽  
Japanese Economy ◽  
Fiscal Policies ◽  
Unconventional Monetary Policy ◽  
Monetary Policies ◽  
Economic Boom

Japan has been under recession for more than twenty years. During that period, drastic measures to overcome deflation have been undertaken. Unconventional monetary policy and huge amounts of fiscal policy have been repeatedly implemented. This paper examines whether or not these policies were effective with a focus on exchange rates. The empirical results showed that recent monetary policies are effective at present and the effectiveness of fiscal policies has been decreasing. On the other hand, exchange rate depreciation has boosted the Japanese economy. Stock prices and wages are related strongly with the economic boom. These variables are important factors to the economy.

Monetary policy and the effect of the transfer of oil prices to inflation

2020 ◽  
pp. 41-50
Author(s):  
Ph. S. Kartaev ◽  
I. D. Medvedev
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Dynamic Models ◽  
Oil Prices ◽  
Oil Price ◽  
Oil Price Shocks ◽  
Negative Effects ◽  
Price Shocks ◽  
Policy Regime ◽  
The Impact

The paper examines the impact of oil price shocks on inflation, as well as the impact of the choice of the monetary policy regime on the strength of this influence. We used dynamic models on panel data for the countries of the world for the period from 2000 to 2017. It is shown that mainly the impact of changes in oil prices on inflation is carried out through the channel of exchange rate. The paper demonstrates the influence of the transition to inflation targeting on the nature of the relationship between oil price shocks and inflation. This effect is asymmetrical: during periods of rising oil prices, inflation targeting reduces the effect of the transfer of oil prices, limiting negative effects of shock. During periods of decline in oil prices, this monetary policy regime, in contrast, contributes to a stronger transfer, helping to reduce inflation.

Commonalities and differences of tax systems in West Balkan countries Comparative analysis

2015 ◽  
Vol 3 (1) ◽  
pp. 155 ◽  
Author(s):  
Teuta Balliu ◽  
Aida Gaçe Llozana
Keyword(s):  
Economic Development ◽  
Comparative Analysis ◽  
Foreign Direct Investments ◽  
Fiscal Policies ◽  
Fiscal Discipline ◽  
Tax System ◽  
Revenue Collection ◽  
Balkan Countries ◽  
The Subject ◽  
Tax Systems

Countries of former Yugoslavia and Albania are considered as countries with many common problems as well as changes, which in this context are regarded as insignificant. On their way towards development, these countries are characterized by common problem, among which the most sensitive have been and still remain, unemployment, increasingly compressed public administration, unjustified optimism when planning the budget, mismanagement of public finances and poor fiscal discipline which mostly depends on being or not an election year. In these countries we notice the lack of harmony between economic and fiscal policies and the real needs of the economy. This is seen as other major common ofWest Balkan countries. This similiarity of problems narrows the possibility of competition associated to the foreign investment absorbing capacity. But, which is the moacroeconomic picture in the countries of West Balkan? What are their tax systems? How much are the foreign direct investments? Does the tax system serve as a promoter for these invvestments? This paper represents a comparative analysis of the fiscal systems in the countries of this region. The subject of this paper is the protection with arguments of the economic and fiscal policy which are built for the economic development of a country. This because we are given that there are two types of experiences related to tax system, one of which handles taxes as instruments for revenue collection and the other as a promoter factor for economic development.

scholarly journals The Influence of Trading Volume, Market Trend, and Monetary Policy on Characteristics of the Chinese Stock Exchange: An Econophysics Perspective

Open Physics ◽  
2019 ◽  
Vol 17 (1) ◽  
pp. 985-998
Author(s):  
Meng Ran ◽  
Zhenpeng Tang ◽  
Weihong Chen
Keyword(s):  
Monetary Policy ◽  
Trading Volume ◽  
Stock Exchange ◽  
Composite Index ◽  
Policy Formulation ◽  
Time Intervals ◽  
Monetary Policies ◽  
Policy Cycles ◽  
Trading Volumes ◽  
Healthy Growth

Abstract The paper adopts the financial physics approach to investigate influence of trading volume, market trend, as well as monetary policy on characteristics of the Chinese Stock Exchange. Utilizing 1-minute high-frequency data at various time intervals, the study examines the probability distribution density, autocorrelation and multi-fractal of the Shanghai Composite Index. Our study finds that the scale of trading volume, stock market trends, and monetary policy cycles all exert significant influences on micro characteristics of Shanghai Composite Index. More specifically, under the conditions of large trading volumes, loose monetary policies, and downward stock trends, the market possesses better fitting on Levy’s distribution, the volatility self-correlation is stronger, and multifractal trait is more salient. We hope our study could provide better guidance for investment decisions, and form the basis for policy formulation aiming for a healthy growth of the financial market.

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.

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