scholarly journals Impact of Inflation on Gross Domestic Product Growth in Ghana

2021 ◽  
Vol 18 (2) ◽  
pp. 117-137
Author(s):  
Justine G. Kankpeyeng ◽  
Ishaque Maham ◽  
Marzuk Abubakar
Keyword(s):  
Money Supply ◽  
Government Expenditure ◽  
Physical Capital ◽  
High Rate ◽  
General Level ◽  
Gdp Growth ◽  
Vector Autoregressive ◽  
Development Indicators ◽  
Inflation Rates ◽  
The Impact

This paper examines the impact of inflation and other macroeconomic variables  such as physical capital, government expenditure, and money supply on GDP  growth in Ghana. The study obtained data from the World Development Indicators  for the period 1986-2018 and employed vector autoregressive (VAR) models  for the analysis. The results showed that general inflation, low inflation rates, physical capital, and money supply have positive, statistically, significant, effect  on GDP growth, while, government expenditure and high inflation have negative,  statistically significant, effect on GDP growth for the period studied. The study  concludes that GDP grows positively at a general level of inflation and low rates  of inflation but grows negatively at a high rate of inflation in Ghana. The study,  therefore, recommends that government should implement monetary and fiscal  policies that will help keep inflation rates low and redirect her spending to the  productive sectors in the country to enhance GDP growth.

scholarly journals Impacts of Monetary Policy on Inflation in Bangladesh

2012 ◽  
Vol 1 (2) ◽  
pp. 103-119
Author(s):  
Mohammad Nayeem Abdullah ◽  
Kamruddin Parvez ◽  
Rahat Bari Tooheen
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Consumer Price Index ◽  
Developed Countries ◽  
Open Market ◽  
Major Transitions ◽  
Classification Code ◽  
Inflation Rates ◽  
The Developed Countries ◽  
The Impact

The objective of this paper is to analyze and discuss the impacts of monetary policy on Bangladesh inflation, identify the major drawbacks of the policies in minimizing the inflation rate and suggest policy recommendations on some key issues of Bangladesh inflation. To estimate the effects of the monetary policy in Bangladesh, at first the impact of different monetary policy tools used by the “Central Banks” of the developed countries have been reviewed. Next, the impact of the monetary policy of Bangladesh Bank and government have been analyzed for which the data on money supply, growth of the GDP, changes in the price level, and changes in the unemployment rate have been quantitatively analyzed. We mainly used Consumer Price Index to determine the level on inflation in Bangladesh. Moreover, our study focuses on data collected from the 1950-2012, mainly focusing our study from the period of 2000-2012 as major transitions have been observed in the economy during the 12 years. We have further analyzed whether there is any correlation between (i) inflation rates and money supply, and (ii) inflation rates and growth of GDP. On the basis of the outcome of the qualitative and quantitative analysis, in the end findings and conclusion have been drawn. We have found the correlation, the impacts of monetary policy and inflation, their drawbacks and possible solutions such as independence of the monetary policy from the fiscal policy and enhancing the transparency, communication and signaling effect of policy moves, keeping the broad money in line with the estimated real GDP growth, borrowing from non-bank sources, and control money supply through various open market operations. Due to lack of access to sufficient data, some of our work is based on hypothesis and models. So some data vary according to the model being used. Lastly, even though, many works have been done from the perspective of developed and other developing countries, much work has not been carried out to establish the relationship between monetary policy and inflation in Bangladesh. GEL Classification Code: E31; E42; E50

scholarly journals Corruption, fiscal policy, and growth: a unified approach

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Sugata Ghosh ◽  
Kyriakos C. Neanidis
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Income Tax ◽  
Government Expenditure ◽  
Tax Revenue ◽  
Unified Approach ◽  
Unified Framework ◽  
Bureaucratic Corruption ◽  
Inflation Rates ◽  
The Impact

AbstractWe study the effects of bureaucratic corruption on fiscal policy and economic growth, where corruption (i) reduces the tax revenue raised from households, (ii) inflates the volume of government spending, and (iii) reduces the productivity of “effective” government expenditure. We distinguish between the policies pursued by (a) a non-optimizing, and (b) an optimizing government. For both cases, corruption leads to higher income tax and inflation rates and a lower level of government spending, thus hindering growth. In the circumstances, an activist government could allocate its resources in attempting to reduce the type of corruption that harms growth the most. Finally, the findings from our unified framework could rationalize the sometimes conflicting empirical evidence on the impact of corruption on growth in the literature.

scholarly journals The Determinants of Credit Growth in Lebanon

2016 ◽  
Vol 10 (2) ◽  
pp. 9 ◽  
Author(s):  
Ali Awdeh
Keyword(s):  
Money Supply ◽  
Commercial Banks ◽  
Opposite Effect ◽  
Negative Impact ◽  
Bank Credit ◽  
Gdp Growth ◽  
Credit Growth ◽  
One Year ◽  
Loan Growth ◽  
The Impact

This study aims at defining the credit growth determinants in Lebanon by exploiting a panel data of 34 commercial banks over the period 2000-2015. The empirical results show that deposit growth, GDP growth, inflation, and money supply, all boost bank credit to the resident private sector. Conversely, credit risk, lending interest rate, T-bill rate, public borrowing, and remittance inflows decrease loan growth. We extend our analysis and detect the impact of one year lag of all exploited variables in order to find out if they have a delayed impact on credit growth, where we find several different results. For instance, lag LLP recorded the opposite effect of LLP; ROA does not affect credit growth, whereas its lag lowers credit growth; the impact of a change in money supply amplifies considerably after one year; and finally, the negative impact of remittances fades away after one year.  

scholarly journals The impact of fiscal and monetary policies on unemployment problem in Nigeria (managerial economic perspective)

2015 ◽  
Vol 5 (2) ◽  
pp. 101-109
Author(s):  
Nick Attamah ◽  
Anthony Igwe ◽  
Wilfred Isioma Ukpere
Keyword(s):  
Monetary Policy ◽  
Exchange Rates ◽  
Money Supply ◽  
Positive Relationship ◽  
A Priori ◽  
Government Expenditure ◽  
Unit Roots ◽  
Monetary Policies ◽  
The Impact ◽  
Unemployment Problem

This paper investigates the impact of fiscal and Monetary Policies on Unemployment Problem in Nigeria and covers the periods 1980 to 2013. To achieve this, fiscal policy was captured here by government expenditures and revenues respectively while monetary policy was proxied by broad Money Supply (M2), Interest and Exchange rates respectively. The methodology adopted was econometric analysis employing OLS techniques and unit roots of the series were examined using the Augmented Dickey-Fuller after which the co-integration tests was conducted using the Engle Granger approach. Error correction models were estimated to take care of the short run dynamics. It was found that while government expenditure had a positive relationship with unemployment problem in Nigeria, the result of government revenue was negative and insignificant on unemployment problem. For monetary policy, it was found that money supply and exchange rate had positive and significant impact while interest rate has only a positive relationship on unemployment problem in Nigeria. This meets the a priori expectation. The study also revealed that increases in interest and exchange rates escalate unemployment by increasing cost of production which discourages the private sector from employing large workforce. On the other hand, national productivity measured by real GDP had a negative and significant impact on unemployment rate in Nigeria. This paper recommends that for an effective combat to unemployment problem in Nigeria, there should be a systematic diversion of strategies, thus more emphasis should be laid on aggressively pursuing entrepreneurial development and increased productivity. Again government should aggressively focus on investment, employment generation and economic growth that has mechanism to trickle does to the masses.

Environmental effects of fiscal expansion — application of the RBC model

2018 ◽  
Vol 63 (4) ◽  
pp. 5-14
Author(s):  
Piotr Krajewski ◽  
Piotr Krajewski ◽  
Michał Mackiewicz ◽  
Katarzyna Piłat
Keyword(s):  
Air Pollution ◽  
Fiscal Policy ◽  
Government Expenditure ◽  
Public Capital ◽  
Gdp Growth ◽  
Real Business Cycle ◽  
Negative Effects ◽  
Pollution Emission ◽  
Public Investments ◽  
The Impact

The aim of the article is to analyse the impact of expansionary fiscal policy, involving an overall increase in government expenditure, on the condition of the natural environment and, more specifically, on air pollution. The analysis is based on the Real Business Cycle (RBC) model. The results of the simulations indicate that expansionary fiscal policy, contributing to GDP growth, also results in deterioration of air quality. The analysis also shows that in the longer term, the main mechanism by which this policy affects the level of air pollution emission is the accumulation of public capital. Therefore, in order to minimise the negative effects of fiscal expansion on the environment, it is particularly important to invest in pro-ecological public investments.

scholarly journals DAMPAK KEBIJAKAN FISKAL DAN MONETER DALAM PEREKONOMIAN INDONESIA

2020 ◽  
Vol 2 (3) ◽  
Author(s):  
Ada Tua Pardamean
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Government Expenditure ◽  
Secondary Data ◽  
Tax Revenue ◽  
Linear Regression Models ◽  
The Government ◽  
The Impact

The trade-off between achieving price stability and economic growth, especially in the short term is the impact of a decision-making dilemma for the conduct of fiscal policy or monetary policy in the Indonesian economy. The problem is what lies behind this study and aimed to determine the impact of fiscal and monetary policies on the Indonesian economy. The data used are secondary data sourced from Bank Indonesia and BPS variables namely GDP, Government Expenditure, Tax Revenue, Export, Exchange Rate, Money Supply, Interest Rates for time series from 2000 to 2012. Data analysis was performed using Two Stage Least Squares (TSLS) estimation with multiple linear regression models using Eviews 5.0 program assistance. The results of this study it can be concluded that the simultaneous equation model on IS to variable Interest Rate and a significant negative effect on GDP of Indonesia, while the Government Expenditure variable (G0), Export (X0) and Tax Revenue (Tx) and Exchange Rate (ER) effect positively and significantly to Indonesia's GDP, while the equation for the LM model of the Money Supply variables significantly and negatively related to Indonesia's GDP increased at a rate statistically a = 10% and for variable interest rate is not significantly to Indonesia's GDP.

scholarly journals The impact of inflation on the unemployment rate in Egypt: a VAR approach

2021 ◽  
Vol 107 ◽  
pp. 06009
Author(s):  
Emad Attia Mohamed Omran ◽  
Yuriy Bilan
Keyword(s):  
Unemployment Rate ◽  
Time Series Data ◽  
Empirical Studies ◽  
Impulse Response Function ◽  
High Rate ◽  
Series Data ◽  
Vector Autoregressive ◽  
Political Effects ◽  
The Impact ◽  
The Relationship

Unemployment and inflation are among the most critical phenomena facing both developed and developing countries due to their harmful social, economic, and political effects. The Egyptian monetary policy’s main objective is to maintain a low inflation rate in the medium run to keep the confidence and a high rate of investment and economic growth. At the same time, economists argue that targeting a low-rate of inflation may increase unemployment. Although the classical Philips curve indicates a trade-off between inflation and unemployment, several empirical studies have argued that the relationship between inflation and unemployment depends on the shocks’ source and lagged responses. The main objective of this paper is to examine the relationship between inflation and Egypt’s unemployment rate. We used time-series data from 1980 to 2019, where a vector autoregressive (VAR) model and the Impulse response function tool (IRF) were employed. The results show that inflation has a positive relationship with GDP while negatively affecting the unemployment rate.

scholarly journals The Impact of Fiscal Policy on the Economic Growth of Jordan

2018 ◽  
Vol 10 (10) ◽  
pp. 145
Author(s):  
Abdullah Ali Al-Masaeed ◽  
Evgeny Tsaregorodtsev
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Government Expenditure ◽  
Gdp Growth ◽  
The Impact

The present study examined the impact of fiscal policy measured by (Government expenditure, Government revenues, internal public debt, external public debt) in addition to exports and inflation factors on the Jordanian GDP growth for the period 1990-2010. The study used multiple linear regression and least squares method (OLS) to test the study hypotheses. The study found that government expenditure, exports and government revenues has a positive and significant impact on the Jordanian GDP growth, and negative and significant impact on the Jordanian GDP growth. The study found that external public debt has a negative but not significant impact on the Jordanian GDP growth.

THE IMPACT OF MACROECONOMIC FACTORS ON FINANCIAL PERFORMANCE OF SELECTED AIRLINES OPERATING INTO KENYA

2017 ◽  
Vol 2 (5) ◽  
pp. 1
Author(s):  
Jane W. Kiboi ◽  
Dr. Paul Katuse
Keyword(s):  
Interest Rates ◽  
Significant Relationship ◽  
Financial Statements ◽  
Aviation Industry ◽  
Gdp Growth ◽  
Net Income ◽  
Macroeconomic Factors ◽  
Inflation Rates ◽  
The Impact ◽  
The Relationship

Purpose: The growth of economy is argued to have a positive impact on financial performance of various key sectors. Economic growth is measured using indicators such as the GDP growth rate, inflation rate, interest rates, exchange rates, money supply among others. This study focused on investigating the impact of global and origin countries GDP growth, Inflation rates and interest rates on net income of selected airlines that operate into Kenya.Methodology: Data on macroeconomic factors was collected from World Bank website for the period of between 2005 and 2014. Data on airlines net income was collected from the published financial statements for the period 2005 to 2014. The published financial statements were audited and as such their use increased the reliability and validity of the findings and conclusions. Audited statements of comprehensive income, statements of financial position, of the selected airlines were collected from their respective websites. Statistical methods correlation and regression analysis were used to test the relationship between the macroeconomic indicators and net income of airlines.Results: The results revealed a negative significant relationship between origin inflation and net income of airlines. The results further revealed a negative and significant relationship between origin interest rates and net income of the airlines. The relationship between origin GDP growth and net income of the airlines was insignificant at 5% significant level.Unique contribution to theory, practice and policy: This study recommends that investors in aviation industry should heavily invest when the macroeconomic fundamentals such as interest rates and inflation rates of origin countries are strong to be able to reap high profitability from airlines.  Again, investors should invest more when the global economy is performing well so as to reap maximum profits from airlines destined to Kenya. That the key indicators and determinants for investment decision making in the aviation industry are the Global GDP, Global inflation, Country of Origin interest rates and inflation rates.

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