Why do the national financial and monetary policies not boost the economy?

2020 ◽  
Vol 26 (7) ◽  
pp. 1496-1521
Author(s):  
N.I. Kulikov ◽  
M.A. Kulikova ◽  
A.A.S.R. Mobio
Keyword(s):  
Central Bank ◽  
Policy Support ◽  
Gdp Growth ◽  
Government Contracts ◽  
Monetary Policies ◽  
The Past ◽  
Russian Economy ◽  
Yearly Average ◽  
Analysis And Synthesis ◽  
The Government

Subject. This article assesses the reasons why the economic policy of the Government and Central Bank of Russia does not cause the economic advance. The article tries to find out why the two strategic programmes adopted over the past ten years have not been implemented in most indicators. Objectives. The article aims to analyze the results of financial and monetary policies in Russia over the past ten years, and establish why the Russian economy has been growing within one percent yearly average all these years, and its share in the world economy has not grown, but got reduced even. Methods. For the study, we used the methods of analysis and synthesis. Results. The article proposes certain measures and activities to move to soft financial and monetary policies of the State and corresponding changes in the structure of the Russian economy. This will help ensure six to seven percent GDP growth annually. Conclusions. High loan rates have become the main obstacle to GDP growth in Russia. It is necessary to accept concrete actions and decisions concerning the Bank of Russia key rate, expansion of the functions of the Central Bank of the Russian Federation, industrial policy, support of consumer demand, long-term government contracts for the real sector enterprises, etc.

Ghana's IMF bailout to persist despite souring ties

2016 ◽  
Keyword(s):  
Central Bank ◽  
Budget Deficit ◽  
Credit Rating ◽  
Gdp Growth ◽  
Content Type ◽  
Bank Financing ◽  
Electricity Crisis ◽  
Manufacturing Activity ◽  
The Government ◽  
The Imf

Significance Earlier this month, the government passed a bill allowing for central bank financing of the budget deficit, contravening a core requirement in its agreement with the Fund. Earlier breaches led to the fourth tranche of the bailout (worth 114 million dollars) being withheld. Impacts Other donors will withhold aid disbursements until the impasse between Accra and the IMF is resolved. The electricity crisis will continue to undermine manufacturing activity, contributing to disappointing GDP growth. Ivory Coast's pro-business reforms mean it could attract investors deterred by Ghana's economic woes. Prolonged tensions with the IMF coupled with a deterioration its Ghana's fiscal metrics may drive a credit rating downgrade.

Chapter I. The Home Economy

1975 ◽  
Vol 72 ◽  
pp. 9-22
Keyword(s):  
Demand Management ◽  
Balance Of Payments ◽  
Management Policy ◽  
Upward Trend ◽  
Monetary Policies ◽  
The Past ◽  
The Social ◽  
The Government ◽  
Stimulation Of

The latest budget was the clearest indication yet of the break which is occurring in the way in which economic policy has been conducted since the war. Against a background of falling output and rapidly rising unemployment (actual, as well as forecast) the Chancellor introduced a deflationary package. The last time unemployment reached ¾ million on an upward trend, in mid-1971, policy was already moving towards stimulation of demand, and this was the tendency on all previous occasions when the unemployment figures had been rising for any length of time. The different reaction this time is a measure of the seriousness with which the Chancellor views the balance of payments situation and, more especially, wage and salary inflation. Demand management policy is evidently now being used not to maintain a high and stable level of employment but as a bargaining weapon in an attempt to get some effective tightening of the social contract. Wages have risen much faster than prices over the past twelve months, evidence that the Trade Union side of the contract is not being kept. The government is therefore showing that it can no longer keep its part of the bargain and that it will not, through its fiscal and monetary policies, continue to validate a rate of wage increase between 20 and 30 per cent per annum. While this policy is pursued, unemployment must rise unless or until the inflation of incomes slows down.

IMF deal will have mixed impact in Argentina

2018 ◽  
Keyword(s):  
Central Bank ◽  
Policy Coordination ◽  
Medium Term ◽  
Treasury Bonds ◽  
Monetary Policies ◽  
Foreign Investors ◽  
Content Type ◽  
Investor Confidence ◽  
Combined Operation ◽  
The Government

Significance Driven by the currency run that saw a depreciation of 24.1% in just three weeks, the government has begun talks with the IMF in a bid to restore investor confidence. The peso run ended on May 15 owing to a combined operation by the Central Bank and the Finance Ministry: the Central Bank put a floor under the exchange rate by offering 5 billion dollars at 25 pesos to the dollar while the Finance Ministry reopened its tender of Treasury bonds to attract foreign investors. Impacts The sharp peso depreciation will boost inflation; workers will demand a reopening of wage negotiations. Falling real incomes will undermine economic recovery. Investors will demand more policy coordination and coherent fiscal and monetary policies. IMF funds will ease medium-term default fears, but fiscal tightening will be required to lower dependence on foreign finance.

EFFECTS OF INTEREST RATES ON THE PERFORMANCE OF REAL ESTATE INDUSTRY IN KENYA: A CASE OF NAIROBI COUNTY

2017 ◽  
Vol 2 (6) ◽  
pp. 35
Author(s):  
Edwin Kamweru ◽  
Mr. Ngui Mr. Ngui
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Significant Relationship ◽  
Positive Relationship ◽  
Gdp Growth ◽  
Real Estate Industry ◽  
Monetary Policies ◽  
The Real Estate ◽  
Long Run ◽  
The Government

Purpose: The study sought to determine the effects of interest rates on the performance of real estate industry in Kenya: A case of Nairobi county.Methodology: The study adopted a descriptive survey research design.Results: The study findings revealed that lending interest rates had a negative and significant relationship with real estate growth in Nairobi. The findings show that deposit interest rates were insignificantly related to growth of the real estate firm in Nairobi. The long run model findings also revealed that overdraft interest rates had a significant relationship with real estate growth in Nairobi. The findings revealed that inflation had a negative and significant relationship with performance of real estate firms in Nairobi. GDP growth was found to have a positive relationship with the performance of real estate firms though the relationship was insignificant.Unique contribution to theory, practice and policy: The study findings revealed that lending interest rates have a negative and significant relationship with real estate growth in Nairobi. The study recommends that the CBK should implement monetary policies that aim to reduce the lending interest rates that financial institutions charge on lending so as to bring stability in the industries including real estate industry. The study recommends that the Central bank of Kenya as well as the Treasury should come up with monetary policies to regulate the rate of volatility in inflation rate in the long run since long term investors in real estate are likely to suffer loses if the economy is characterized by unstable rates of inflation. The study findings also indicated that GDP growth has a positive relationship with the performance of real estate firms in the long run. The study recommends that the government should reexamine the strategies and policies that aim to spur GDP growth.

scholarly journals The Impact of the Covid-19 Pandemic on the Vietnamese Economy: A Comprehensive Assessment based on Data Analysis and Surveys

Webology ◽  
2021 ◽  
Vol 18 (Special Issue 04) ◽  
pp. 149-163
Author(s):  
Hoang Phuong Nguyen ◽  
Viet Duc Bui
Keyword(s):  
Implementation Process ◽  
Gdp Growth ◽  
Strong Impact ◽  
Policy Recommendations ◽  
Business Sector ◽  
Analysis And Synthesis ◽  
The Government ◽  
The Impact ◽  
Policy Solutions

For mankind, war always brings heavy devastation to people and property. In general, pandemic diseases are a factor causing mass death and much greater socio-economic devastation than war. Updating current news and analysis and synthesis initially shows that globalization has made the Covid-19 pandemic spread rapidly worldwide, unprecedented in history. At the same time, the Covid-19 pandemic had a strong impact on people's lives. This study aims to project the impact scenarios of the Covid-19 pandemic on the Vietnamese economy and provide some policy recommendations to limit negative economic impacts. The results of the study indicate that: (i) Q2 GDP growth of Vietnam is forecast to be around 2.0% over the same period and will even decline if a bad scenario occurs; (ii) If the pandemic is prolonged, the impact on the economy in general and the business sector, in particular, will be very serious. We recommend the government build a variety of economic policy scenarios ranging from short (support) to long term (rescue) to cope with the pandemic situation in Vietnam and other countries worldwide. The proposed policy solutions need to consider the delay in the issuance and implementation process to ensure timeliness and efficiency.

Islamic Banking in Indonesia

2020 ◽  
pp. 38-60
Author(s):  
M. Luthfi Hamidi ◽  
Andrew C. Worthington
Keyword(s):  
Central Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Islamic Banking ◽  
Credit Allocation ◽  
Banking Services ◽  
The Past ◽  
The Government ◽  
Market Pressures

The Indonesian banking sector has been stable and generally sound over the past decade, partly through efforts by the Bank of Indonesia as Indonesia's central bank and Otoritas Jasa Keuangan as its financial services regulator. This chapter identifies important issues that remain for both conventional and Islamic banking in Indonesia. Authors suggest the government continue its efforts to reform what remains a geographically concentrated industry, to increase the role of bank credit in the economy, and to widen the provision of banking services through technology. Authors highlight the vulnerability of smaller banks in Indonesia to ongoing competitive market pressures and the necessity of creating larger banks through merger or capital raising and improving credit allocation to small and medium-sized businesses. Islamic banking has an important role to play in these developments, and those relating to Islamic social banking.

Hungarian economy will face post-election challenges

2018 ◽  
Keyword(s):  
Central Bank ◽  
Interest Rates ◽  
Fourth Quarter ◽  
Output Gap ◽  
Gdp Growth ◽  
Regional Economies ◽  
Budget Deficits ◽  
Monetary Policies ◽  
Content Type ◽  
Low Levels

Subject The next government's economic prospects. Significance If, as is likely, the Fidesz party wins a third term in office in April, it will look to capitalise upon the upturn in GDP growth in 2017. After stronger-than-expected growth acceleration in the fourth quarter, which is likely to have closed Hungary's output gap, Fidesz may favour loose fiscal and monetary policies to support the economy after the election. Impacts The central bank is expected to hold interest rates at historically low levels well into 2019. GDP is likely to grow as fast in 2018 as in 2017, as Hungary consolidates its position as one of the fastest-growing regional economies. If Fidesz keeps fiscal and monetary policies loose for longer than expected next year, larger budget deficits are likely.

Central-Bank ‘Distress’ and Hyperinflation in Argentina, 1989–90

1995 ◽  
Vol 27 (3) ◽  
pp. 663-682 ◽  
Author(s):  
Paul Beckerman
Keyword(s):  
Exchange Rate ◽  
Public Sector ◽  
Central Bank ◽  
Financial Markets ◽  
Interest Rates ◽  
Monetary Policies ◽  
The Public ◽  
Domestic Debt ◽  
Outstanding Debt ◽  
The Government

AbstractThe essential explanation of Argentina's 1989 hyperinflations is that the stabilisation programmes immediately preceding them drove the public sector in particular, the central bank – into ‘debt distress.’ These stabilisation programmes sought to anchor prices on an appreciated exchange rate, sustained by tight monetary policies that maintained high interest rates. The problem was that the government and the central bank had heavy domestic-debt burdens, and their combined interest bill far exceeded their non-interest surplus. To finance the interest without creating money, the government and central bank had to add continually to the outstanding debt stock as they capitalised the interest due. The debt swelled, and interest rates were pressured upward. Heavy pressure against the exchange rate, devaluation and hyperinflation then ensued when the public-sector debt stock exceeded what financial markets could be persuaded to hold at reasonable interest rates.

scholarly journals Indonesian Logistics Infrastructure: The Performance and Fiscal Support

2018 ◽  
Vol 7 (2) ◽  
pp. 9-18
Author(s):  
Sigit Setiawan
Keyword(s):  
Positive Impact ◽  
Policy Support ◽  
Eastern Region ◽  
Infrastructure Development ◽  
Contributing Factors ◽  
Short Term ◽  
Goods And Services ◽  
The Past ◽  
Low Performance ◽  
The Government

In the globalization and ASEAN Economic Community era, the competitiveness of Indonesian industries to sell goods and services is facing more severe challenges. It is partly due to the low performance of Indonesian logistics sector, and one of the contributing factors to the unsatisfactory logistics is poor logistics infrastructure. In this regard, this paper has several research objectives. The first is to analyze the performance of Indonesia logistics infrastructure in the past decade. The second is to analyze Indonesian logistics infrastructure development with its relevant fiscal policy support and evaluate its short-term progress. The research method adopted in this study is descriptive analytical method. In comparison with other countries, especially ASEAN region, the performance of Indonesian logistics infrastructure over the past decade tends to be steadily incompetitive, below the average of ASEAN countries. It is found to be one of the prime determinants of the high logistics costs in Indonesia. The government serious attention and the consistency of its policy towards improving logistics infrastructure during the 2014-2019 period has been partially seen, but the program sustainability is required in subsequent periods. In the short term, a temporary evaluation until 2017 of the sea toll program integrated with the construction of logistics infrastructure shows a positive impact. The positive impact is indicated from the decreasing prices of basic necessities in the eastern region of Indonesia by 20%-40%, and the economic revival of Eastern Indonesia region due to currently cheaper transportation costs.

scholarly journals Albania's Central Bank's Monetary Policy Has Failed

2019 ◽  
Vol 2 (2) ◽  
pp. 73
Author(s):  
Alqi Naqellari ◽  
Sokol Paҫukaj
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Trade Deficit ◽  
Negative Consequences ◽  
Internal Factors ◽  
Monetary Policies ◽  
Analysis And Synthesis ◽  
Macroeconomic Indicators ◽  
Liquid Trap ◽  
The Impact

The subject of this paper will be the Central Bank's monetary policy in terms of the Albanian monetary market. Its purpose will be to determine the effects of monetary policy, its consequences on some of the key macroeconomic indicators. From the analysis of data, it was found that the Central Bank's policy, which has its main objective, "achieving and preserving the level of prices", is applied in the conditions of an unequal monetary market, because the money market is almost divided equal to 50/50 between currency and local currency (All). These main internal factors, and other external factors, have made the monetary policy applied by the Central Bank to have no impact or have negative consequences on key macroeconomic indicators. Central Bank monetary policy is currently smothered. Some of the negative consequences are: the decline of the impact on the inflation indicator, the transition of the Albanian economy to the "liquid trap", the change in the structure of deposit usage in favor of debt instruments, decrease of deposits in total and deposits in lek, the decline in purchasing power of deposits, the reduction of credit and the change of their structure, consequently the reduction of productive investments, euro depreciation, trade deficit growth, etc. Under these conditions, only fiscal policies have an impact. In order for the Central Bank's policies to become effective, with concrete implications on the economic indicators, fundamental changes need to be made. First, change its main objective by having the main objective "currency stability and economic growth" secondly, to establish a fully state-owned commercial bank in order to support the monetary policies and key sectors of the economy. The methods used in this paper are the method of description, comparison, analysis and synthesis, statistical methods etc.

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