scholarly journals The Monetary Policy in the System of State Regulation of the Indian Economy

2015 ◽  
pp. 97-107
Author(s):  
N. V. Galistcheva
Keyword(s):  
Monetary Policy ◽  
Foreign Currency ◽  
State Regulation ◽  
Real Effective Exchange Rate ◽  
Fiscal Year ◽  
Main Task ◽  
Bank Rate ◽  
Effective Exchange ◽  
High Level ◽  
Export Revenue

The main task of this research is the analysis of India's monetary policy and its place in the system of state regulation of the economy. The article highlights the main directions of the Indian monetary policy in 1990-2000s aiming to raise competitiveness of the Indian goods on the foreign markets as well as stimulating the inflow of foreign capital in necessary volumes into the national economy. The author focuses on the main instruments of the modern Indian monetary policy, pursued in line with providing the undervalued rupee, which include the manipulating of the bank rate and currency interventions, directed mainly at sterilization of excessive inflow of foreign currency to the country. The article also underlines all the advantages and costs of the monetary policy. One of its main advantages is stimulation of national production's exports and among costs there are difficulties of importing machines and equipment into the country, increase of inflation rate as a result of massive inflow of export revenue, difficulties at external debt's service. The author notes the gradual nature of introduction of current account rupee convertibility and reasons for delay in achieving its full convertibility. Among them there are rather high level of fiscal deficit of the consolidated budget, essential average annual level of inflation, problems of non-performed assets in the economy, high liquidity ratio for commercial banks. The article also presents statistical data on the present state of the Indian foreign exchange reserves as well as dynamics in nominal and real effective exchange rate of rupee in 2005/06 - 2013/14 fiscal year.

Financial State of Utilities and Ways to Improve It

2021 ◽  
Vol 26 (1) ◽  
pp. 30-36
Author(s):  
Valentyna Glukhova ◽  
◽  
Kristina Kravchenko ◽  
Keyword(s):  
State Regulation ◽  
Public Utilities ◽  
Financial Policy ◽  
Main Task ◽  
Efficient Operation ◽  
Financial Condition ◽  
Transport Services ◽  
Fixed Assets ◽  
Utility Companies ◽  
High Level

Annotation. Introduction. One of the key tasks of the formation of a socially oriented economy is to ensure a high level and quality of life of the population, which implies the satisfaction of the most necessary needs of citizens in comfortable housing, energy, sanitary and technical, transport services, etc. Satisfaction of the above needs is possible only under the condition of the efficient and uninterrupted functioning of utilities, since the main task of the utilities is to provide the population with heat, water, gas, electricity and other services on which the comfort of housing, the state of human health, the constant mode of operation of enterprises, improvement districts, ecological state of settlements. The efficient operation of enterprises of communal ownership largely depends on their financial condition. Therefore, the study of the development and financial support of public utilities, the effectiveness of their activities is relevant, especially in the context of decentralization. Now, the problems of public utilities require much attention, among which their financial condition is significant. Purpose. The purpose of the work is to analyze and study the financial condition of utilities and develop proposals for its improvement. Results. The article considers, analyzes and compares such indicators of the financial condition of utility companies in some cities of Ukraine as: financial results, depreciation of fixed assets, return on assets, absolute liquidity ratio. Factors influencing the financial results of utilities have been identified. The main ways to improve the financial condition of utilities have been identified. Conclusions. According to the results of the analysis of their financial condition, the prevailing loss, high level of depreciation of fixed assets and low capital productivity of most enterprises in this industry have been determined. The reasons for this situation are the lack of effective directions of financial policy in this area, the imperfection of the regulatory framework and miscalculations in the management of financial resources. The current state of this industry gives grounds to talk about the need to improve the effectiveness of its state regulation in order to solve the basic problems of its socio-economic development.

scholarly journals Impacts of the monetary policy on the exchange rate: case study of Vietnam

2019 ◽  
Vol 26 (2) ◽  
pp. 220-237
Author(s):  
Van Anh Pham
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Real Effective Exchange Rate ◽  
Content Type ◽  
Effective Exchange ◽  
Quantitative Results ◽  
The Exchange Rate ◽  
The Interest Rate ◽  
Effective Exchange Rate

Purpose The purpose of this paper is to evaluate and analyze impacts of the monetary policy (MP) – money aggregate and interest rate – on the exchange rate in Vietnam. Design/methodology/approach The study uses data over the period of 2008–2018 and applies the vector autoregression model, namely recursive restriction and sign restriction approaches. Findings The main empirical findings are as follows: a contraction of the money aggregate significantly leads to the real effective exchange rate (REER) depreciating and then appreciating; a tightening of the interest rate immediately causes the REER appreciating and then depreciating; and both the money aggregate and the interest rate strongly determine fluctuations of the REER. Originality/value The quantitative results imply that the MP affects the REER considerably.

scholarly journals THE ROLE OF FINANCIAL CONTROLLING IN THE MANAGEMENT SYSTEM OF TOURISM AND RECREATIONAL COMPANY

2017 ◽  
Vol 1 (9) ◽  
pp. 1-8
Author(s):  
Maia Seliverstova
Keyword(s):  
Financial Stability ◽  
Foreign Currency ◽  
The United States ◽  
Financial Economic ◽  
Modern World ◽  
Main Task ◽  
15Th Century ◽  
Destabilizing Factors ◽  
High Level

In the modern world tourism and recreation are highly profitable activities, which also have asignificantimpact on the economy of the country, contributing to the inflow of foreign currency, creating newjobs, improving infrastructure and so on. In the conditions of economic instability and high level of marketcompetition, success of financial-economic activity of tourist enterprises is determined by the efficiency ofdecision-making that directly depends on the total access to information about the financial state and existingrisks.The aim of the researchwas to identify the role of financial controllingin the management systemof tourist-and-recreational company.Research methodsused for this research paper were analysis, synthesis, comparison, classificationand grouping of functions and objectives oftheobjectbeing studied.The objectwas the role of financial controlling in the management system.It is believed that controlling as economic term was discovered in Europe in the 15th century, afterthat it gained a wide development in the United States. In Russia, the concept of controlling became popularin the 1990s.Conclusions:1. The main task of financial controlling is to maintain profitability and ensure liquidity,i.e. the ability of the enterprise to fulfil its payment obligations at any time that is most relevant for the tourismindustry. Among the key challenges faced by resort companies, it is important to headline the seasonality ofdemand, which largely affects the using of their material resources. The duration of the active period can varyfrom 90 to 180 days; it often depends on climateand a number of other factors (Zlenko, 2015). In order tostabilize the work during the off-season, maintain financial stability and solvency in recent years many tourismand recreational enterprises began to strive for the introduction of modern management systems. 2. Aneffective system of financial controlling at a tourist and recreational enterprise allows fully assessing thecurrent position of the company, making forecasts and successfully resisting external destabilizing factors.

Analysis of debt burden and credit of corporate sector: Estimates for Russia and cross-country cases

2018 ◽  
pp. 25-48 ◽  
Author(s):  
S. V. Sheremeta ◽  
A. N. Mogilat
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Interest Rates ◽  
Economic Activity ◽  
Currency Crises ◽  
Inflation Targeting ◽  
Foreign Currency ◽  
Significant Risk ◽  
Developed Countries ◽  
High Level

The paper discusses dynamics of private sector debt-to-GDP ratio and debt service ratio (DSR). We show that the level of DSR for developing countries is less than that of DSR for developed countries, and has a more volatile dynamics. Developing countries face significant risk from external sector of the economy due to high level of their dependence on external debt - through currency revaluation, on the one hand, and reciprocal growth of interest rates, on the other hand. This is illustrated, for example, by the situation in Russia in 2014-2016. We also show that countries with monetary policy based on inflation targeting face much more downplayed response of DSR shocks on their economic activity than countries with different regimes of monetary policy. That is why currency crises in several regions including South-East Asia and Russia, have led to significant growth in DSR and forwarded shift to inflation targeting in these countries. Along with shocks of DSR related to volatility of foreign currency, we explore those related to inflation and monetary conditions, abrupt changes in economic activity, etc. The paper also focuses on factors of DSR dynamics, including interest rates, terms, volumes, foreign currency revaluation, and its decomposition on the long period of time.

scholarly journals Restoring international competitiveness in Croatia: The role of fiscal and monetary policy

2013 ◽  
Vol 58 (199) ◽  
pp. 39-55
Author(s):  
Tomislav Coric ◽  
Hrvoje Simovic ◽  
Milan Deskar-Skrbic
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Fiscal Policy ◽  
International Competitiveness ◽  
Real Effective Exchange Rate ◽  
Labour Costs ◽  
Unit Labour Costs ◽  
Effective Exchange ◽  
Effective Exchange Rate

Croatia has joined the European Union as a country with several substantial structural problems, of which the most important is weak competitiveness. Although competitiveness can be viewed from the ?institutional? perspective, which includes World Development Indicators (WDI) and Doing Business reports, in this paper the authors focus on the more standard view of competitiveness based on unit labour costs (ULC) and real effective exchange rate (REER). As a small, open and highly dollarized/euroised economy that has to coordinate its economic policy with the EU policy framework, Croatia has limited space for increasing international competitiveness using monetary policy measures aimed at (nominal) devaluation of the national currency. Therefore economic policy stakeholders should focus on decreasing unit labour costs and real effective exchange rate mainly through the process of internal devaluation, which is based on adequate fiscal policy measures. In this paper the authors analyse the role of monetary and fiscal policy in the deteriorating real effective exchange rate and unit labour costs since 2000, and their current capabilities and restrictions in restoring international competitiveness. The Structural VAR model (SVAR) is used to estimate the effects of foreign (banking) capital, credit growth, and current public expenditure on REER and ULC. The preliminary hypothesis of the paper is that monetary policy should continue to support bank lending activities and the role of fiscal policy is to achieve an internal devaluation, which will increase the competitiveness of the Croatian economy. Restoring international competitiveness is necessary due to its impact on net exports and consequently the economic recovery of the national economy, which has faced recession conditions for five years in a row. Also, restoring competitiveness is one of the most important preconditions for the success of a small country joining the single European market.

Responses of Monetary Policy to Inflation, the Output Gap, and Real Exchange Rates: The Case of Australia, Canada, and New Zealand

2010 ◽  
Vol 10 (2) ◽  
pp. 1850196 ◽  
Author(s):  
Bruno S. Sergi ◽  
Yu Hsing
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
New Zealand ◽  
Inflation Targeting ◽  
Inflation Rate ◽  
Real Exchange Rates ◽  
Real Effective Exchange Rate ◽  
Output Gap ◽  
Effective Exchange ◽  
Effective Exchange Rate

This study shows that the policy rate reacts positively to the inflation rate, the output gap, and the lagged real effective exchange rate for Australia, Canada, and New Zealand and negatively to the current real effective exchange rate for Australia and Canada. The inflation rate has a greater impact on the policy rate for New Zealand than for Australia and Canada whereas the output gap has a greater effect on the policy rate for Australia and Canada than for New Zealand. Since the adoption of inflation targeting, the intercept of the monetary-policy function has decreased in each of the three countries, and the slope coefficient of the inflation rate has increased for Australia and New Zealand but has decreased for Canada.

scholarly journals Die Bedeutung monetärer Größen für die deutsche Wachstumsschwäche 1995–2005

2009 ◽  
Vol 60 (1) ◽  
Author(s):  
Jonas Dovern ◽  
Nils Jannsen ◽  
Joachim Scheide
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Euro Area ◽  
German Economy ◽  
Real Effective Exchange Rate ◽  
Effective Exchange ◽  
Weak Growth ◽  
Effective Exchange Rate

SummaryBetween 1995 and 2005, the German economy has experienced a phase of weak economic growth. We analyze whether this weak growth performance can be attributed to the stance of monetary conditions during that period. We show that the real effective exchange rate did have almost no dampening effects on growth. On the contrary, the introduction of the euro and the single monetary policy for the euro area seem to have contributed significantly to the low trend growth rate in Germany between 1999 and 2005.

De-dollarization Process in the EAEU Member States as an Element of the Monetary Policy

2019 ◽  
pp. 70-81
Author(s):  
K.S. Ivanova
Keyword(s):  
Monetary Policy ◽  
Economic Integration ◽  
Foreign Currency ◽  
Member States ◽  
Transmission Channels ◽  
Monetary Systems ◽  
National Currencies ◽  
High Level ◽  
Regional Grouping ◽  
Negative Expectations

Economic integration in the EEU region naturally captures the area of cooperation in the monetary sphere, which is a more high-level stage of integration in its classical understanding. The imbalances in macroeconomic development and a number of problems in the monetary systems of the EEU member-countries are an obstacle to the intensification of cooperation in the monetary sphere. One of the significant problems, common to all the EEU member-states is the dollarization of their economies, which imposes restrictions on the ability of monetary bodies to regulate macroeconomic processes in the country. Replacing national currencies in settlements, payments and savings with «hard currencies» reduces the efficiency of transmission channels, worsens volatility indicators of national currencies and strengthens the spiral of formation of negative expectations regarding inflation levels. An increase in the debt load denominated in foreign currency, in particular for individuals, creates additional risks to the monetary systems of countries. This article is devoted to the study of the problems of dollarization of the economies of the EEU member-states, of the required de-dollarization measures, as well as to the analysis of the prospects for the de-dollarization process spreading at the regional grouping level.

scholarly journals The cyclical character of economic policy in Serbia 2001-2012

2014 ◽  
Vol 59 (202) ◽  
pp. 157-182 ◽  
Author(s):  
Jelena Radovic-Stojanovic
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Exchange Rate ◽  
Money Supply ◽  
Cross Correlation ◽  
Price Index ◽  
Real Effective Exchange Rate ◽  
The Real ◽  
Effective Exchange ◽  
Effective Exchange Rate

This paper investigates the cyclical character of economic policy in Serbia in the period 2001-2012. For this purpose the cyclical movement of the following monetary and fiscal variables have been analysed: M2 money supply, the retail price index, the consumer price index, and the real effective exchange rate as the monetary policy indicators, and budget revenues and budget expenditures as the fiscal policy indicators. In the evaluation of the cyclical character of the economic policy, cross-correlation between the cyclical component of economic policy indicators and the gross domestic product at various lags has been observed. The results of cross-correlation analysis suggest that the budget expenditures are countercyclical and lead the aggregate cycle while the budget revenues are procyclical. The cyclical character of M2 money supply in the Serbian economy is somewhat contradictory, so further investigations of the cyclical character of monetary policy and mutual interdependence of money and output are required. The real effective exchange rate is countercyclical. The prices are procyclical and lag behind the cycles in aggregate economic activity. The procyclical character of prices indicates that the causes of the cyclical fluctuations of aggregate economic activities in Serbia in the period from 2001 to 2012 were on the demand side.

Regional effects of inflation targeting in Russia: Factors of heterogeneity and structural inflation rates

2019 ◽  
pp. 70-89
Author(s):  
Michael I. Zhemkov
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Structural Factors ◽  
Regional Effects ◽  
Inflation Rates ◽  
Price Growth ◽  
Effective Exchange ◽  
The Difference ◽  
Communication Policies ◽  
Structural Levels

Inflation targeting in Russia implies maintaining stable low inflation at a level of 4% throughout the country. The presence of structural factors in some regions can determine deviations from the all-Russian inflation, which can lead to different effects of monetary policy in Russian regions. In this paper, we analyze regional heterogeneity of inflation and factors of inflation deviations from the national average, estimate structural levels of inflation in the regions of Russian Federation. These estimates confirm the presence of some regional factors of inflation deviations from the all-Russian indicator, such as the difference in productivity growth of the tradable and non-tradable sectors (Balassa—Samuelson effect), effective exchange rates, real incomes and product stocks. In addition, our results confirm the presence of regions with price growth rate above and below monetary policy target. The results of this research can be used for the development of monetary and communication policies.

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