scholarly journals A Political Economy of Wellbeing/Wellness in Nigeria

2022 ◽  
Vol 13 (1) ◽  
pp. 1
Author(s):  
Anselm Adodo
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Inflation Rate ◽  
Policy Position ◽  
Macroeconomic Performance ◽  
The World Bank ◽  
Misery Index ◽  
High Level ◽  
Stiffening Effect

Since the turn of the new millennium, which was the period of clear comparison and computation of the misery index, Nigeria had always record low in the index for the report. Within the last three years, the misery index that was published has shown that Nigeria is the sixth (6th) most miserable country that one can reside. This measure of misery index was also substantiated by the recent report from the World Bank on the issue of poverty, inequality, and wellness. However, it seems to be an intensified interest in how Nigeria will overcome such an unpleasant pattern. In this research, the study examined how macroeconomic indices in enhancing people’s wellbeing—utilising economic growth, monetary policy position, and governance efficiency as, unemployment, interest rate, and inflation rate for macroeconomic performance indicators. The conclusions drawn suggest that economic growth, resulting in the advancement of wellbeing via allocative as well as distributive productivity is possible. Second, there is a stiffening effect on the wellbeing of contractionary monetary policy which increases interest rates and unemployment rates. The outcome extracted also shows that unnecessary domestic lending characteristics of the Nigerian economic system invalidate the wellbeing of the Nigerian people. Therefore, it proposed that the monetary authority reevaluate its present position on sustaining a high level of rediscount rate.   Received: 17 November 2021 / Accepted: 30 December 2021 / Published: 5 January 2022

scholarly journals Economic Growth, Policies and Influencing Factors: The Case of Albania

2016 ◽  
Vol 4 (1) ◽  
pp. 107
Author(s):  
Eleni Vangjeli ◽  
Anila Mancka
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Influencing Factors ◽  
Fiscal Policies ◽  
The Government ◽  
High Level ◽  
The Empirical Analysis

Monetary and fiscal policies are two policies that the government could use to keep a high level of growth, with a low inflancion. Fiscal policy has its initial impact on the stock market, while monetary policy in market assets. But, given that the goods and active markets are closely interrelated, both policies, monetary as well as fiscal have impact on the economy, increasing the level of product through the reduction of interest rates. In our paper we will show how functioning monetary and fiscal policies. But also in our paper we will analyze the different factors which have affected the economic growth of the country. The focus of our study is the graphical and empirical analysis of economic growth, policies and influencing factors. For the empirical analysis we have used data on the economic growth in Albania for 1996– 2014.

scholarly journals Regular Econometric Model of Taylor for Albania

2016 ◽  
Vol 5 (1) ◽  
pp. 123
Author(s):  
Ergys Misha
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Financial Stability ◽  
Inflation Targeting ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Central Banks ◽  
Financial Assets

The Taylor’s Rule Central Banks is applying widely today from Central Banks for design the monetary policy and for determination of interest rates. The purpose of this paper is to assess monetary policy rule in Albania, in view of an inflation targeting regime. In the first version of the Model, the Taylor’s Rule assumes that base interest rate of the monetary policy varies depending on the change of (1) the inflation rate and (2) economic growth (Output Gap).Through this paper it is proposed changing the objective of the Bank of Albania by adding a new objective, that of "financial stability", along with the “price stability”. This means that it is necessary to reassess the Taylor’s Rule by modifying it with incorporation of indicators of financial stability. In the case of Albania, we consider that there is no regular market of financial assets in the absence of the Stock Exchange. For this reason, we will rely on the credit developmet - as a way to measure the financial cycle in the economy. In this case, the base rate of monetary policy will be changed throught: (1) Targeting Inflation Rate, (2) Nominal Targeting of Economic Growth, and (3) Targeting the Gap of the Ratio Credit/GDP (mitigating the boom cycle, if the gap is positive, and the contractiocycle if the gap is negative).The research data show that, it is necessary that the Bank of Albania should also include in its objective maintaining the financial stability. In this way, the contribution expected from the inclusion of credit gap indicators in Taylor’s Rule, will be higher and sustainable in time.

scholarly journals Albania's Monetary Policy and the Basic Indicators that Effect the Economic Growth

2019 ◽  
Vol 2 (2) ◽  
pp. 51
Author(s):  
Bernard Balla
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Inflation Rate ◽  
Full Employment ◽  
Price Stability ◽  
Macroeconomic Policies ◽  
Consumer Prices

Macroeconomic policies aim to stabilize the economy by achieving their goal of price stability, full employment and economic growth. Price stability is the responsibility of macroeconomic policies that are developed to maintain a low inflation rate, contribute to the solidity of the domestic product and maintain an exchange rate that can be predictable. The purpose of this paper is to analyze Albania's monetary policy by highlighting the main indicators that can be used as a measurement of the efficiency of this policy in the economic development. The literature review shows that there are many attitudes regarding the factors that need to be taken into consideration when analyzing monetary policies, including the elements of fiscal policies. In the Albanian economy, the prices and the level of inflation are the most important aspects. The Bank of Albania uses the inflation targeting regime, considering that the main indicator of inflationary pressures in the economy is the deviation of inflation forecasted in the medium term by its target level. In numerical terms, the bank intends to maintain its annual growth in consumer prices at the level of 3%. According to the latest reports published by the Bank of Albania in 2019, monetary policy continues to contribute positively to a financial environment with a low interest rate and an annual inflation rate of 2%. Although the inflation rate hit the lowest value of 1.8 % in 2018, a balanced rate was achieved through the reduction of interest rates and risk premiums in financial markets and, more recently, through the tightening of the exchange rate. These monetary conditions are appropriate to support the growth of domestic demand and the strengthening of inflationary pressures.

An Analysis of the Effectiveness of Interest Rates to Facilitate Price Stability and Economic Growth in South Africa

2018 ◽  
Vol 63 (3) ◽  
pp. 68-90
Author(s):  
Danie Francois Meyer ◽  
Chama Chipeta ◽  
Richard Thabang Mc Camel
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
South African ◽  
Inflation Rate ◽  
Price Stability ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
Repo Rate

Abstract Price stability supports accelerated economic growth (GDP), thus the main objective of most central banks is to ensure price stability. The South African economy is experiencing a unique monetary policy dilemma, where a high inflation rate is accompanied by high interest rates and low GDP. This is an unconventional monetary policy scenario and may hold strenuous repercussions for the South African economy. This dilemma was held as the rationale behind this study. The study investigated the effectiveness of the use of the repo rate as an instrument to facilitate price stability and GDP in South Africa. Long-run, short-run and casual relationships between interest rates, inflation and GDP were therefore analyzed. The methodology is based on an econometric process which included a Johansen co-integration test, with a Vector Error Correction model (VECM). Casual relationships were also tested using Granger causality tests. Results of the Johansen Co-integration test indicated the presence of co-integrating long-run relationships between the variables and a significant and negative long-run relationship between the repo rate and inflation rate was revealed, whereas GDP and inflation rate exhibited a significant and positive long-run relationship. The study also found short-run relationships between inflation and GDP, but not for inflation and the repo rate. Further areas of potential research may fixate towards the assessment of other significant alternative policy tools which may be utilized by various countries’ monetary policy authorities to influence supply specific inflationary pressures led by the cost-push phenomena, especially in the short-run.

scholarly journals Analysis on German Monetary Policy from 1974 to 1990

2020 ◽  
Vol 214 ◽  
pp. 02007
Author(s):  
Minxu Wang
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Inflation Rate ◽  
Policy Tools ◽  
Low Level ◽  
Rapid Economic Growth ◽  
German Monetary Policy

This article analyzes German monetary policy from 1974 to 1990. During this period, Germany experienced rapid economic growth and maintained the inflation rate at an average low level. This article would like to analyze German monetary policy to find the reasons why Germany could have rapid economic growth and maintain inflation rate at an average low level. Then specific main goal, right choices of monetary policy tools and intermediary indicators, and timely adjustment of the policy were found as the reasons. We also learn some successful experience about monetary policy from Germany and apply them in China.

scholarly journals Interest rates and prices causality in the Czech Republic – Granger approach

2009 ◽  
Vol 55 (No. 7) ◽  
pp. 347-356 ◽  
Author(s):  
J. Poměnková ◽  
S. Kapounek
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Interest Rate ◽  
Interest Rates ◽  
Inflation Rate ◽  
Aggregate Demand ◽  
Real Economy ◽  
Investment Activity ◽  
The Czech Republic ◽  
The Interest Rate

Monetary policy analysis concerns both the assumptions of the transmission mechanism and the direction of causality between the nominal (i.e. the money) and real economy. The traditional channel of monetary policy implementation works via the interest rate changes and their impact on the investment activity and the aggregate demand. Altering the relationship between the aggregate demand and supply then impacts the general price level and hence inflation. Alternatively, the Post-Keynesians postulate money as a residual. In their approach, banks credit in response to the movements in investment activities and demand for money. In this paper, the authors use the VAR (i.e. the vector autoregressive) approach applied to the “Taylor Rule” concept to identify the mechanism and impact of the monetary policy in the small open post-transformation economy of the Czech Republic. The causality (in the Granger sense) between the interest rate and prices in the Czech Republic is then identified. The two alternative modelling approaches are tested. First, there is the standard VAR analysis with the lagged values of interest rate, inflation and economic growth as explanatory variables. This model shows one way causality (in the Granger sense) between the inflation rate and interest rate (i.e. the inflation rate is (Granger) caused by the lagged interest rate). Secondly, the lead (instead of lagged) values of the interest rate, inflation rate and real exchange rate are used. This estimate shows one way causality between the inflation rate and interest rate in the sense that interest rate is caused by the lead (i.e. the expected future) inflation rate. The assumptions based on money as a residual of the economic process were rejected in both models.

scholarly journals Monetary policy, exchange rate, renewable energy and economic growth: An empirical analysis of Vietnam

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1315-1324 ◽  
Author(s):  
Nguyen Thi Viet Nga
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Renewable Energy ◽  
Exchange Rate ◽  
Secondary Data ◽  
Positive Influence ◽  
Strong Impact ◽  
Negative Effects ◽  
Vector Autoregressive ◽  
The World Bank

The aim of this study is focused on how monetary, energy consumption and other factors affect economic growth of the country of Vietnam. Based on collected secondary data covering from the World Bank and Vietnam’s General Statistics Office from 1985 to 2019, and some data collected from the State Bank of Vietnam, Vector Autoregressive Model was considered to apply in order to investigate this relationship. Results show that there exists an association among monetary policy, renewable energy and the country’s economic growth. Especially, the country’s exchange rate shows no influence on its economic growth while interest rate has negative effects and particularly money supply and renewable energy have a positive influence on the same direction and has a strong impact on economic growth.

scholarly journals Impact of Monetary Policy on Economic Growth: Empirical Evidence in Vietnam

2019 ◽  
Vol 5 (10) ◽  
Author(s):  
Tang My Sang
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Money Supply ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
The Impact

Through the secondary data collected from 2009 to 2018, the research used Var method to test the impact of monetary policy on economic growth in Vietnam. The results show that there is a relationship between the variables of monetary policy and economic growth, in which the money supply has a positive impact at a high significant level, interest rates have a negative impact on Vietnam economic growth. From the results obtained, the research proposed solutions for operating monetary policy.

scholarly journals Assessment of the Impact of Environmental Pollution on Economic Growth

2017 ◽  
Vol 9 (3) ◽  
pp. 68-80
Author(s):  
Olga Kudryavtseva ◽  
E. . Ivanov ◽  
D. . Kolesnik ◽  
E. . Matveev ◽  
S. . Pechenkin ◽  
...  
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
World Bank ◽  
Turning Point ◽  
Middle Income ◽  
Middle Income Countries ◽  
Econometric Methods ◽  
The World Bank ◽  
High Level ◽  
The Impact

The work is devoted to testing the hypothesis of the existence of an inverted U-shaped dependence of economic growth on the level of environmental pollution, which was based on the concept of the ecological curve of Kuznets. The authors, using econometric methods and data from the World Bank, show that the hypothesis is correct: there is a turning point between the positive and negative nature of the dependence of economic growth on the level of CO2 emissions. The hypothesis is confirmed for low- and middle-income countries, and the dependence is linear negative for countries with a high level of income. Based on the results, the authors formulate recommendations on environmental regulation in accordance with the level of the country's economic development.

scholarly journals Spillover effect of United States Monetary Policy on Nigeria’s Financial and Macro Fundamentals

2020 ◽  
pp. 111-145
Author(s):  
Patterson C. Ekeocha ◽  
Elias A. Udeaja
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Policy Process ◽  
Inflation Rate ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Conditional Variance ◽  
Quantitative Easing ◽  
External Shocks ◽  
The Us

This paper examines spillover effects of U.S monetary policy on macroeconomic fundamentals in Nigeria from January 1985 to December 2018. The study period is partitioned to account for conventional monetary policy (CMP) period, January 1985 to August 2007 and unconventional monetary policy (UMP) period, September 2007 to December 2018. Guided by relevant pre-tests, we find BEKK-VARMA-CCCMGARCH as the most appropriate model. The study finds significant spillover effects of U.S CMP and UMP on interest rate, exchange rate and inflation rate in Nigeria. We, however, observe that while CMP may be a significant accelerator of shocks persistence on interest rates and exchange rates, the extent to which the UMP accelerate shocks in inflation rate tends to vary for different measures of quantitative easing. Thus, in addition to past own shocks and past own conditional variance of these macro fundamentals, understanding their dynamics cannot be in isolation of their vulnerability to external shocks and volatility due to spillover effects of monetary actions in other economies. In formulating monetary policy, it is therefore, imperative for the Central Bank of Nigeria to monitor the monetary policy process of the US to hedge against shocks spillovers.

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