The Impact of Monetary Policy on the Investment Complex of Russia

An active discussion continues in Russia regarding the monetary instruments used and the degree of their impact on economic dynamics. The article examines the impact of the monetary policy implemented by the Central Bank of the Russian Federation on the investment complex in the period from 2000 to 2021. For this period, an analysis of the dependence characterizing the investment complex of Russia on the monetary policy is carried out. In the paper, the investment complex is considered with a breakdown into mechanical engineering, residential and non-residential construction, investments in fixed assets. At the same time, mechanical engineering is studied in detail with a breakdown into subsections of Russian National Classifier of Economic Activities and, additionally, for five enlarged industries. Most of the constructed regression equations demonstrate a statistically significant effect of indicators that are influenced by monetary policy instruments on the dynamics of the main indicators of the investment complex. For example, the interest rate affects the overwhelming number of variables under consideration, and the money supply affects each type of investment in fixed assets, in contrast to other independent variables. For the predominant part of the equations, the value of the coefficient of determination is more than 80%, which indicates a good quality of the model and reliably selected explanatory variables. Based on the results of the calculations, it was concluded that monetary policy has an impact on the investment complex of Russia. This determines its importance for the formation of promising dynamics of the Russian economy.

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Monetary Stabilization Policy in the Coronacrisis

SHS Web of Conferences ◽

10.1051/shsconf/202112901015 ◽

2021 ◽

Vol 129 ◽

pp. 01015

Author(s):

Tatiana Kotcofana ◽

Anastasiya Titova ◽

Armen Altunyan

Keyword(s):

Monetary Policy ◽

Policy Instruments ◽

Value Added ◽

Stabilization Policy ◽

University Of Oxford ◽

Global Recession ◽

National Economies ◽

The University ◽

The Impact ◽

The Relationship

Research background: In 2020, all the world's economies faced a new, special phenomenon – the coronacrisis caused by the pandemic, and with the fall of most economic indicators. In the current conditions, it is extremely important to build a competent monetary policy in order to soften the "blows" caused by the global recession for national economies. Purpose of the article: The main purpose of the presented article is the analysis of measures to stimulate the economy using monetary policy instruments in the conditions of the coronacrisis. Methods: To conduct the study, we used official statistics data, on the basis of which an econometric model was built, which allowed us to determine the forecast values for inflation, taking into account the impact of monetary and non-monetary factors. Findings & Value added: The econometric analysis show the high importance of non-monetary factors of inflation. This makes it difficult to assess the monetary policy, since Central banks are able to influence non-monetary factors only indirectly. The paper notes the influence of the refinancing rate on loans to the real sector of the economy, since the stabilization monetary policy should be primarily aimed at maintaining economic growth. The correlation field of the relationship between the index of rigidity of restrictions developed by the University of Oxford and loans to small and medium-sized businesses is constructed. It is noted that with the reduction of administrative restrictions, the volume of loans granted to small and medium-sized businesses increases.

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THE ROLE OF THE CENTRAL BANK IN THE FUNCTION OF IMPROVEMENT OF LIQUIDITY OF BANKING SECTOR IN BOSNIA AND HERZEGOVINA

НОВИ ЕКОНОМИСТ ◽

10.7251/noe1824008m ◽

2019 ◽

Vol 12 (24) ◽

Author(s):

Goran Mitrović ◽

Živko Erceg

Keyword(s):

Monetary Policy ◽

Central Bank ◽

Bosnia And Herzegovina ◽

Banking Sector ◽

Banking System ◽

Policy Instruments ◽

Foreign Banks ◽

Dayton Agreement ◽

The Impact

The monetary policy of Bosnia andHerzegovina is rather limited because it is basedon the principles of a currency boardcharacterized by the impossibility of implementingthe basic monetary policy instruments incomparison with the monetary policy of theEuropean Union. However, the constant presenceof European integrations should point the need fora more drastic change in the monetary policy ofBosnia and Herzegovina. By entering theEuropean Monetary Union (EMU), the monetaryterritory of Bosnia and Herzegovina will becomeone of the branches of the European Central Bank(ECB). In addition, it is not difficult to concludewhy the Law about the Central Bank of Bosnia andHerzegovina has been adopted with the first lawsof the Dayton Agreement, if it is known that thelargest part of the banking system, and thereforethe financial market, is owned by foreign banks.This work will point out the significance of theCentral Bank of Bosnia and Herzegovina, as oneof the most important factors for maintaining thepermanent liquidity of the banking sector inBosnia and Herzegovina. The possibilities andlimitations of the Central Bank of Bosnia andHerzegovina will be determined, with theassumption of macroeconomic sustainability overa longer period of time. The need of reforming thebanking system in Bosnia and Herzegovina will beanalyzed through the constant implementation ofthe Basel standards with the increasingparticipation of foreign banks in the Bosnia andHerzegovina. It will be determined the impact ofthe implementation of the Basel III in the bankingindustry in Bosnia and Herzegovina and itsconsequences on the banking and economicsystem.models, on the ways of financing theelimination of adverse consequences of naturaldisasters.

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Investments in Polish Agriculture: How Production Factors Shape Conditions for Environmental Protection?

Sustainability ◽

10.3390/su12198160 ◽

2020 ◽

Vol 12 (19) ◽

pp. 8160

Author(s):

Piotr Bórawski ◽

Marta Guth ◽

Aneta Bełdycka-Bórawska ◽

Krzysztof Józef Jankowski ◽

Andrzej Parzonko ◽

...

Keyword(s):

Water Management ◽

Environmental Protection ◽

Agricultural Land ◽

Environmental Issues ◽

Organic Production ◽

Explanatory Variables ◽

Production Factors ◽

Fixed Assets ◽

Total Investment ◽

The Impact

In recent years, social and economic goals have been preferable compared to environmental issues. However, global problems with the environment, increasing pollution, and gas heating emissions have made environmental issues a major priority. Suddenly, human beings have realized that environmental investments are needed to maintain better world conditions for future generations. This article investigates the development of agricultural investment in the context of production factors in Polish voivodeships in the years 2000–2018. Farmers have to choose between investing and developing production or being more environmentally friendly and invest on a smaller scale or transform their farms into organic production. Moreover, the investment in environmental protection in Poland was analyzed. Investment outlays on fixed assets for environmental protection and outlays on fixed assets for water management were investigated. The level of investment has changed since Poland joined the EU. With membership, Poland gained access to new markets and technology. Particular attention has been focused on production factors (land, capital, and the work force). We have conducted as a proxy regular regression analysis and after panel regression to measure the impact of the chosen factors on explained variables: investment outlays in agriculture, and investment outlays per 1 ha of agricultural land. We have used correlation analysis to examine the relations between explanatory variables and total gross investment in agriculture and total investment outlays in agriculture per 1 ha of agricultural land, outlays on fixed assets for environmental protection, and outlays on fixed assets for water management. Our analysis confirms that explanatory variables are important in shaping total investment outlays in agriculture and total investment outlays per 1 ha of agricultural land.

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Rack Temperature Prediction Model Using Machine Learning after Stopping Computer Room Air Conditioner in Server Room

Energies ◽

10.3390/en13174300 ◽

2020 ◽

Vol 13 (17) ◽

pp. 4300

Author(s):

Kosuke Sasakura ◽

Takeshi Aoki ◽

Masayoshi Komatsu ◽

Takeshi Watanabe

Keyword(s):

Machine Learning ◽

High Heat ◽

Training Data ◽

Coefficient Of Determination ◽

Gradient Boosting ◽

Air Conditioner ◽

Tree Model ◽

Explanatory Variables ◽

Temperature Environment ◽

The Impact

Data centers (DCs) are becoming increasingly important in recent years, and highly efficient and reliable operation and management of DCs is now required. The generated heat density of the rack and information and communication technology (ICT) equipment is predicted to get higher in the future, so it is crucial to maintain the appropriate temperature environment in the server room where high heat is generated in order to ensure continuous service. It is especially important to predict changes of rack intake temperature in the server room when the computer room air conditioner (CRAC) is shut down, which can cause a rapid rise in temperature. However, it is quite difficult to predict the rack temperature accurately, which in turn makes it difficult to determine the impact on service in advance. In this research, we propose a model that predicts the rack intake temperature after the CRAC is shut down. Specifically, we use machine learning to construct a gradient boosting decision tree model with data from the CRAC, ICT equipment, and rack intake temperature. Experimental results demonstrate that the proposed method has a very high prediction accuracy: the coefficient of determination was 0.90 and the root mean square error (RMSE) was 0.54. Our model makes it possible to evaluate the impact on service and determine if action to maintain the temperature environment is required. We also clarify the effect of explanatory variables and training data of the machine learning on the model accuracy.

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Respons Of Islamic Stock Markets To Monetary Policy Empirical Evidence from Indonesia

AL-ARBAH: Journal of Islamic Finance and Banking ◽

10.21580/al-arbah.2019.1.1.4437 ◽

2019 ◽

Vol 1 (1) ◽

pp. 35-46

Author(s):

Muhammad Rasyidin ◽

Zunaidah Sulong

Keyword(s):

Economic Growth ◽

Monetary Policy ◽

Stock Market ◽

Significant Relationship ◽

Policy Instruments ◽

Capital Formation ◽

Alternative Source ◽

Market Strategy ◽

Long Run ◽

The Impact

AbstractPurpose - The impact of stock market and capital formation on economic growth in Indonesia for the period of January 2015 – May 2019. This paper examines a long-run equilibrium relation between stock market, capital formation and economic growth and other control variables.Method - This study uses autoregressive distributed lag (ARDL) model.Result - Findings revealed that none of the models was stationary at level but were all stationary at first difference. There is not a short run significant relationship between stock market, capital formation and economic growth in Indonesia. In the long run, capital formation has a significant positive association on economic growth and a negative non-significant relationship between stock market and economic growth in Indonesia.Implication - This research is useful to know the response of Sharia market to monetary policy instruments in Indonesia so that the Sharia stock market strategy is potentially developing in the future to encourage the achievement of characteristics such as An alternative source of financing and investment for economic actors and able to facilitate risk mitigation needs for market participants and able to drive the efficiency of transactions in the market through the improvement of the quality of stock market infrastructure Sharia. Originality - The update of this research is response of Sharia stock market response to monetary policy instruments in Indonesia that are researched using ARDL models.

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Evaluation of the Impact of the Bank of Russia Key Rate on the Commercial Banks’ Deposit Policy

Administrative Consulting ◽

10.22394/1726-1139-2020-8-99-111 ◽

2020 ◽

pp. 99-111

Author(s):

M. N. Konyagina ◽

I. R. Meurmishvili ◽

A. A. Dochkina

Keyword(s):

Monetary Policy ◽

Interest Rates ◽

Commercial Banks ◽

Policy Instruments ◽

Policy Instrument ◽

Credit System ◽

Leading Role ◽

State Of The Economy ◽

Current Impact ◽

The Impact

The monetary policy of the Central Bank is in the sphere of interests of economists of various specializations. Determining the value of money in the economy, the money supply, and ensuring the effective functioning of the national payment system, the regulator has a significant impact on the state of the economy and determines the prospects for its development. One of the most important monetary policy instruments is the key rate. However, the efficiency of its application in different economies at different historical periods is different.At the same time, commercial banks, being the core of the credit system, are extremely dependent on the volume and quality characteristics of accumulated deposits. Private clients’ deposits are an important resource for both short-term and long-term operations of credit organizations. In Russia, banks play a leading role in the financial market. In this regard, the evaluation of the impact of a key rate as an important monetary policy instrument on the banks’ deposit policy is of particular relevance in the current state of the Russian economy. Therefore, determining as an aim of the research the evaluation of the current impact of the Bank of Russia key rate on the Russian credit organizations’ deposit policy, the authors sorted out the necessary relevant data on interest rates and deposit volumes in Russian commercial banks in 2014–2018, assessed the strength of the relationship between the Bank of Russia key rate and banks’ deposit rates and the volume of deposits in the country, identified the problems of implementing monetary policy in Russia and evaluated the effectiveness of the key rate as the monetary policy tool.

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FEATURES OF INTEREST-BEARING MONETARY POLICY INSTRUMENTS OF THE CZECH NATIONAL BANK

Vestnik Universiteta ◽

10.26425/1816-4277-2020-3-127-133 ◽

2020 ◽

pp. 127-133

Author(s):

A. V. Berdyshev ◽

N. S. Bobyr

Keyword(s):

Monetary Policy ◽

Interest Rates ◽

Inflation Targeting ◽

Global Financial Crisis ◽

Policy Instruments ◽

Macroeconomic Policies ◽

Exact Test ◽

Macroeconomic Indicators ◽

National Bank ◽

The Impact

The features of the economic development of the Czech Republic after the global financial crisis, the role of the Czech National Bank in the formation of macroeconomic policies, as well as the peculiarities of monetary regulation in the study period have been defined in the article. The main goal of the paper is to assess the impact of interest rates used by the Czech National Bank in the process of monetary regulation on the dynamics of the main macroeconomic indicators, which is considered as one of the necessary conditions for the effectiveness of the inflation targeting regime. By the results of the correlation analysis and Fisher’s exact test, it has been determined that the Czech National Bank could affect the main macroeconomic indicators based on the percentage of monetary policy instruments used.

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Economic Growth, Inflation and Monetary Policy in Pakistan: Preliminary Empirical Estimates

Review of Applied Management and Social Sciences ◽

10.47067/ramss.v4i2.132 ◽

2021 ◽

Vol 4 (2) ◽

pp. 321-333

Author(s):

Hina Ali ◽

Malka Liaquat ◽

Noreen Safdar ◽

Saeed ur Rahman

Keyword(s):

Time Series ◽

Monetary Policy ◽

Unit Root ◽

Time Series Data ◽

Unit Root Test ◽

Series Data ◽

Economic Activities ◽

Data Set ◽

Explanatory Variables ◽

Empirical Estimates

In economic policy, construction Inflation is a core variable to be considered that determines the economic activity. To make a suitable monetary policy, it is very essential to check the price level and later on, many other variables are considered to achieve the goal. This study aims to reveal the affiliation of inflation on the growth of economic activities in Pakistan. Time series data set for the period 1989-2020 was used to have the empirical estimates. Augmented Dickey Fuller Unit Root Test is employed to check the unit root of the time series and Auto Regressive Distributive Lag techniques are used for empirical estimates. The present research uses Inflation as a dependent variable and Gross Domestic Product, Interest Rate, Money Supply, and Exchange Rate as the explanatory variables of the study. The findings of this analysis reveal that there's an antagonistic relation between Inflation and GDP.

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EFFECT AND IMPORTANCE OF CREDIT FLOWS FROM MONETARY POLICY MANAGEMENT ASPECT

Knowledge International Journal ◽

10.35120/kij3101143v ◽

2019 ◽

Vol 31 (1) ◽

pp. 143-148

Author(s):

Nikola Vidović ◽

Milenko Dželetović ◽

Hatidža Beriša

Keyword(s):

Monetary Policy ◽

Banking Sector ◽

Transition Period ◽

Developed Countries ◽

Economic Activities ◽

Positive Effects ◽

Personal Consumption ◽

National Economies ◽

The Impact ◽

World Function

The paper focuses on a topic that explains the impact of credit flows on the conduct of monetary policy, as well as their impact on economic activities within national economies in certain countries in the world. Function and importance for the banking sector, as well as for all economic entities, which are categorized by company size, and the impact on the performance and realization of business activities.By comparing similarities and differences, there is a clear distinction between the basic banking channel of credit and the credit channel in the wider sense, as well as their degree of operation in the period before, during, and after the global economic crisis. The paper highlights the positive effects, as well as the negative, ie how their implementation affects the actors of a country's economic system and what are the consequences with a focus on demand, personal consumption, inflation and employment. The problems of adequate application of the model in periods of recession, as well as the degree of representation in developed countries, moderately developed, and countries in the transition period are studied.

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Respons Of Islamic Stock Markets To Monetary Policy Empirical Evidence from Indonesia

AL-ARBAH: Journal of Islamic Finance and Banking ◽

10.21580/al-arbah.v1i1.4437 ◽

2019 ◽

Vol 1 (1) ◽

pp. 35

Author(s):

Muhammad Rasyidin ◽

Zunaidah Sulong

Keyword(s):

Economic Growth ◽

Monetary Policy ◽

Stock Market ◽

Significant Relationship ◽

Policy Instruments ◽

Capital Formation ◽

Alternative Source ◽

Market Strategy ◽

Long Run ◽

The Impact

AbstractPurpose - The impact of stock market and capital formation on economic growth in Indonesia for the period of January 2015 – May 2019. This paper examines a long-run equilibrium relation between stock market, capital formation and economic growth and other control variables.Method - This study uses autoregressive distributed lag (ARDL) model.Result - Findings revealed that none of the models was stationary at level but were all stationary at first difference. There is not a short run significant relationship between stock market, capital formation and economic growth in Indonesia. In the long run, capital formation has a significant positive association on economic growth and a negative non-significant relationship between stock market and economic growth in Indonesia.Implication - This research is useful to know the response of Sharia market to monetary policy instruments in Indonesia so that the Sharia stock market strategy is potentially developing in the future to encourage the achievement of characteristics such as An alternative source of financing and investment for economic actors and able to facilitate risk mitigation needs for market participants and able to drive the efficiency of transactions in the market through the improvement of the quality of stock market infrastructure Sharia. Originality - The update of this research is response of Sharia stock market response to monetary policy instruments in Indonesia that are researched using ARDL models.

Download Full-text