The Mechanism of Shifting From Direct Monetary Policies to Indirect Monetary Policies

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Saad Khalaf ◽  
Abdul Rahman Abdul Ridha ◽  
Hussein Habeeb

After 2008, a new term appeared on monetary policies after the direct monetary policies failed to reach a solution to the economic deficit that occurred in the economies of many countries, especially after the mortgage crisis that plagued the financial markets in most countries of the world, as these countries tried to reduce the interest rate to Zero or close to it in order to move the economy, but it did not respond despite the fact that the interest rate is the main tool and is considered the control stick in direct monetary policies.  Thus, it became imperative for those countries to use new tools in order to get out of that crisis. Japan is considered the first to use these new policies and solutions before that period, and he is the first to call them indirect monetary policies. These tools were called by many names, including quantitative easing, credit facilitation and others. Many names, but it was the best solution by monetary policy makers for many countries, including the United States of America, the United Kingdom of Britain and the European Union, which represent the most powerful economies in the world,

Author(s):  
Aneta Ejsmont

Building own business is a long-term and laborious process. A person who leads a startup tries to start with building own business by taking first steps toward financial independence. Analyzing conditions in Poland, on average every second startup sells its services abroad, admittedly it is good news, although half of them do not export at all. Half of the startups which export their services and goods generates more than 50% of their revenues outside Poland. Very interesting is the fact that 60% of exporters have conducted their foreign sale since the moment of establishing their business. On which markets do they sell their services? It turns out that the most popular are markets in the European Union (54%), including the United Kingdom 14% and Germany 9%. Only about 25% of Polish startups exports their products and services to the United States. Taking the United States into consideration, in 2008 the USA lost their leading position in the number of startups which are newly created and achieving success in business. Currently in terms of the number of new startups the USA is on a quite distant place after Denmark, Finland, Sweden, Hungary, New Zealand, Israel or Italy. In short, more companies were closed than created, so it was, as a matter of fact, like in Poland. Therefore, the condition to improve the development of startups both from Poland and other countries all the world is to increase cooperation and coopetition.


English Today ◽  
2005 ◽  
Vol 21 (4) ◽  
pp. 61-64 ◽  
Author(s):  
tom mcarthur

there are, as it were, three levels in the title of the discussion, each going further ‘out’ from hong kong, although the direction and perspective could as easily have been reversed, moving ‘inwards’ from the world to china to hong kong, one of history's most successful social, cultural, political, and economic anomalies. there could equally easily have been four levels: hong kong, china, asia, and the world, a framework that would even then have been simpler than, say, ‘london, england, the united kingdom, the european union, europe at large, and the world’, but much the same as ‘lagos, nigeria, africa, and the world’ or ‘los angeles, california, the united states, and the world’.


2009 ◽  
Vol 2 (2) ◽  
pp. 292-303
Author(s):  
Sabri Zire Al-Saadi

This article highlights the limitation of the traditional macroeconomic policies related to oil-rent crucial issues and suggests remedies for the current global financial and economic crises in view of free market efficiency principles as advocated by contemporary economic doctrines: Keynesian and Monetarism. It also reasserts the long-term alternative strategy for the liberalization of the oil-hostage rentier economies. The given analysis is based on the experience of the oil-rentier countries, as well as the fiscal and monetary policies applied in the advanced economies; especially the United States, Britain and the European Union for dealing with the current global financial crisis and economic recession. The general aim of the analysis is to establish the bases for the required confidence in market efficiency and the benefits of the globalization thrust that are not consistent with the applied remedies. It suggests that for both advanced and oil-rentier economies, heavy investment in modernizing and the expansion of the physical, social, and environmental infrastructure projects are, at this stage, essential. However, for the oil-rentier economies, more emphasis should be given to the role of the state until the objectives of the required economic diversification strategy are achieved. As the credibility and trust of the banks and financial institutions, the policy-makers, fiscal and monetary authorities and regulators are very low, it is essential to retain the confidence of business communities and consumers in the financial and economic systems by undertaking unbiased assessment of the causes, impact, and remedies of the crises for different economies.


2000 ◽  
Vol 171 ◽  
pp. 36-69 ◽  
Author(s):  
Nigel Pain ◽  
Paul Ashworth ◽  
Dawn Holland ◽  
Florence Hubert ◽  
Dirk Willem te Velde

The short-term economic outlook has improved significantly in nearly all parts of the world economy over the past year. Growth has continued at a rapid pace in the North American economies, helped by the renewed vigour in equity prices in recent months and further strong growth in labour productivity. GDP in the United States is estimated to have risen by over 4 per cent in 1999, for the third year in succession. We expect to see further growth of 3¾ per cent this year. The European Union economies have embarked on a cyclical upturn, helped by accommodative monetary policies and the impact of improved external demand.


Author(s):  
UROŠ TOVORNIK

POVZETEK Članek analizira geostrateške spremembe v današnji Evropi in svetu, ki smo jim priča od konca hladne vojne in predvsem od leta 2014 naprej. Klasična geopolitična dinamika se je vrnila in geopolitične teorije, kot sta osrčje in obrobje, so ponovno aktualne. Posledično se na svetovni oder vračajo tudi klasični geostrateški igralci. Članek analizira premike v treh evropskih državah in hkrati članicah Evropske unije, ki so v preteklih stoletjih krojile usodo Evrope, in sicer Francije, Nemčije in Združenega kraljestva. Geostrateške igre v Evropi so zmeraj imele globalne posledice, zato je bila v članku posebna pozornost namenjena tudi ZDA in Rusiji, njunim geopolitičnim interesom in geostrateškemu repozicioniranju. Sčasoma postaja jasno, da smo v tranziciji in na poti k oblikovanju nove evropske in svetovne strateške arhitekture. V tem smislu članek prepoznava nove porajajoče se geostrateške vektorje v Evropi. Ti lahko po eni strani opredeljujejo novo prihajajoče ravnotežje sil, po drugi strani pa možnost kolizije teh vektorjev. Pri slednjem smo lahko priče nepredvidljivim varnostnim posledicam tako za Evropo kakor tudi za ves svet. Ključne besede: geopolitika, geostrategija, Francija, Nemčija, Združeno kraljestvo, ZDA, Rusija. ABSTRACT This article shows how Europe and the world we are living in have changed drastically since the end of the Cold War, and especially since 2014. Classical geopolitical dynamics have resurfaced; theories, such as Heartland and Rimland, apply time and again. Consequently, classical players on the Europe and world stages are back in the game. The article analyses shifts in the following three traditional European powers and members of the European Union which have shaped the destiny of Europe during the last centuries: France, Germany and the United Kingdom. As strategic games in Europe have always had global dimensions, the United States and Russia’s influence and their geostrategic repositioning in Europe is also duly considered. The trend of a transition towards a new strategic architecture in Europe and in the world is ever more evident; the article thus also indicates the new emerging geostrategic vectors in Europe. On the one hand, they may indicate that a new balance is emerging, and on the other hand, that these vectors might collide. In case of the latter, we may face unprecedented security ramifications for Europe as well as for the entire world. Key words: geopolitics, geostrategy, France, Germany, United Kingdom, United States, Russia


Author(s):  
T.A GORBACHEVA ◽  
◽  
T.N BARKOVA ◽  

Modern practice of macroeconomic management is based on the regulation of money supply through the management of interest rates, mainly short-term. Short-term interest rate management is a Central approach to implementing monetary policy in countries such as the United States, the United Kingdom, and the Euro area. By changing the interest rates on operations of providing or absorbing liquidity, the national Central Bank has a significant impact on the level of interest rates for the same period in the money market. Consequently, the structure of all short-term rates changes for a longer period. Depending on a number of factors, including the exchange rate and the expected level of inflation, the structure of long-term interest rates also changes. Each change occurs with a certain time lag. Changes in interest rates affect the savings and investment decisions of households and firms. The purpose of this article is to study the transformation of the concept of interest and the development of interest rate theories. There are used methods of critical and comparative analysis, a systematic approach to the study of information. The theoretical aspects of determining the interest rate in the development of monetary policy are systematized. The main approaches to the development of interest rate policy in the framework of monetary regulation are studied. The obtained theoretical results can be used in the formation and adjustment of monetary policy.


Author(s):  
Ben Tonra

Ireland joined the European Communities—as they were known then—in 1973, alongside the United Kingdom and Denmark. In many ways, that membership was defined by the bilateral British-Irish relationship. Ireland was, to all intents and purposes, an underdeveloped appendage of the British economy, and membership alongside the United Kingdom was deemed by most of the Irish political and economic establishment as virtually axiomatic. Irish policy makers, however, took full advantage of the opportunities offered by membership; in particular the Common Agricultural Policy, the direct transfers that derived from cohesion, regional and structural funding, and the opportunity to present the country as a successful location for Foreign Direct Investment (FDI) with access to the entire European market. Irish policy makers also positioned themselves rhetorically close to the heart of European construction, which had the added value of creating an Irish antithesis to Britain’s ongoing European discontents. There are perhaps four key themes to be analyzed with respect to Ireland and its membership of the European Union. The first is the question of a small state and its sovereignty. As a former colony, with a bitter experience of imperialism and a strong sense of independence, Ireland’s pooling of sovereignty with its European partners has most often been presented as a desirable trade-off between legal, formal sovereignty and effective sovereignty. Having a seat at the main table—alongside the former imperial hegemon—was deemed to be a major advance, one that allowed the state more effectively to pursue its interests—including the resolution of conflict on the island of Ireland. The 2008 financial collapse, and Ireland’s experience of the EU-led troika briefly challenged that narrative. Subsequently, the support given by the EU26 to a resolution of post-Brexit border relations on the island substantially reinforced Ireland’s European commitment. A second theme of inquiry is that of Irish economic development within the European Union. In contrast to other similarly under-developed states and regions in the EU, Ireland is seen by many as something of a poster child for making a success of EU membership. In the run-up to the 2004 enlargement and shortly thereafter, Dublin was a magnet for central European and Mediterranean states looking to replicate the success of the so-called “Celtic Tiger.” Debate persists, however, on the precise balance of costs and benefits deriving from the model of economic development pursued by the Irish state, the role of Irish government policy therein, and consistency between Irish and EU policy priorities, especially in the field of corporate taxation and the regulation of large multinationals. A third theme of inquiry is the intersection of local, national, and European democracy. Once membership was secured, the European Union became a central and largely uncontested fact of Irish political life. Early constitutional referenda authorizing ratification of EC and then EU treaty changes, while vigorously contested, were overwhelmingly won by coalitions of the mainstream political parties and sectoral interest groups. With both the Nice (2001) and Lisbon (2007) treaties, however, ambivalence, antagonism, and complacency combined initially to thwart ratification. The gap between popular opinion on EU treaty change, which ultimately divided roughly 60/40 in favor, and the near unanimity among political elites and sectoral interests, opened a conversation on the relationship between local, national, and European democracy, which is as yet unresolved, but which many see as having further centralized policy making and distanced it from effective democratic control. A fourth theme is that of Ireland and Europe in the world. Ireland joined the European Communities with no expressed reservations on its further political integration, but as the only non-member of NATO. During those initial debates, economic arguments overwhelmingly predominated, but the political issues were aired and the implications for Ireland’s traditional military neutrality were robustly discussed. The subsequent membership of other non-aligned states ought, on the face of things, to have made Ireland’s position all the more secure. Thus, with a long and popular history of UN peacekeeping and active international engagement, the development of European foreign, security, and defense policies should not have proven to be problematic. In fact, neutrality, security, and defense remain neuralgic issues for Ireland within the European Union and have contributed in a very modest way to the challenges faced by the Union in its attempts to craft a coherent and credible common security and defense policy. This speaks to debates surrounding Ireland’s proper place in the world, the lessons of its own history and the perceived capacity for smaller states to shape the international community. These four themes underpin much research and analysis on Ireland as a member of the European Union. In an unstable contemporary climate, with many well-established expectations under threat, they also serve to identify the pathways available to navigate beyond political and economic instability both for Ireland and the wider European project.


2021 ◽  
pp. 223386592110248
Author(s):  
Yooneui Kim ◽  
Youngwan Kim

Are international organizations autonomous actors in global politics? This paper investigates whether and how major powers influence the World Bank’s official development assistance policies. Despite the World Bank’s attempts to maintain independence from its member states, we argue that major powers are still influential. Testing this expectation with the data of official development assistance provisions between 1981 and 2017, we find that the World Bank provides a higher amount of official development assistance to the recipient countries that receive a higher amount of such assistance from the major powers such as the United States, the United Kingdom, France, Germany and Japan. In addition, the World Bank is prone to provide a higher amount of official development assistance to the recipients that have a similar preference to the major powers. This study sheds light on the relations between major powers and international organizations.


Author(s):  
Yi-Tui Chen

Although vaccination is carried out worldwide, the vaccination rate varies greatly. As of 24 May 2021, in some countries, the proportion of the population fully vaccinated against COVID-19 has exceeded 50%, but in many countries, this proportion is still very low, less than 1%. This article aims to explore the impact of vaccination on the spread of the COVID-19 pandemic. As the herd immunity of almost all countries in the world has not been reached, several countries were selected as sample cases by employing the following criteria: more than 60 vaccine doses per 100 people and a population of more than one million people. In the end, a total of eight countries/regions were selected, including Israel, the UAE, Chile, the United Kingdom, the United States, Hungary, and Qatar. The results find that vaccination has a major impact on reducing infection rates in all countries. However, the infection rate after vaccination showed two trends. One is an inverted U-shaped trend, and the other is an L-shaped trend. For those countries with an inverted U-shaped trend, the infection rate begins to decline when the vaccination rate reaches 1.46–50.91 doses per 100 people.


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