scholarly journals Politica monetaria, prezzo degli asset e ciclo immobiliare

2021 ◽  
pp. 361-379
Author(s):  
Gaetano Elnekave
Keyword(s):  
Monetary Policy ◽  
Asset Prices ◽  
Banking Sector ◽  
Free Market ◽  
Jel Classification ◽  
Real Economy ◽  
Credit Expansion ◽  
Monetary System ◽  
Asset Bubble

Asset prices depend on monetary policy of credit expansion. This mechanism is the trigger of economics cycle (boom and bust) that eventually leads the production structure to get narrower and to capital destruction. CBs have a dilemma: after an asset bubble explosion, doing again with policy of credit expansion (the same that produced the cycle) to fight de-flationary effects, above all in banks balance sheets, or trying to prevent the asset bubble explosion throughout QE policies, endangering real economy with inflationist pressures. That is a dilemma without solution. The solution is the elimination of CBs, the return to real money in a free market environment, with an unadulterated gold standard and the respect of traditional principles of contract in the banking sector. We need study the monetary system in terms of quality of money and not according the Quantity Theory of Money. Key words: Monetary Policy, Asset Prices, Asset Bubbles, Business Cycles, Housing Market, Quality of Money vs Quantity of Money. JEL Classification: E2, E21, E3, E32; E42, E5, E52, R31. Resumen: Los precios de los activos dependen de la política monetaria de expansión. Éste mecanismo es el desencadenante del ciclo económico que lleva a un estrechamiento de la estructura productiva y a la destrucción de los bienes de capital. Los bancos centrales se encuentran frente a un dilema: tras la explosión de la burbuja, o actuar con políticas de expansión para evitar las consecuencias de la deflación monetaria en particular sobre los balances de los bancos, o intentar evitar la explosión de la burbuja con más inyección de crédito, pero con el peligro de inflación de los precios en la economía real. Se trata de un dilema sin solución. La solución para eliminar los ciclos es la desaparición de los bancos centrales, el retorno a la «mo - neda-sana», al libre mercado, al patrón oro y al respeto de los principios tradicionales del derecho en el sector bancario. El análisis hay que efectuarlo no en terminos de la cantidad ideal de dinero, sino en terminos de la «ca-lidad» del mismo. Palabras clave: Política Monetaria, Precios de los Activos, Burbujas, Ciclos Económicos, Mercado Inmobiliario, Calidad de la Moneda vs Cantidad de la Moneda. Clasificación JEL: E2, E21, E3, E32; E42, E5, E52, R31.

scholarly journals MEKANISME TRANSMISI SYARIAH PADA SISTEM MONETER GANDA DI INDONESIA

2009 ◽  
Vol 11 (4) ◽  
pp. 345-367
Author(s):  
Aam Slamet Rusydiana
Keyword(s):  
Monetary Policy ◽  
Positive Impact ◽  
Financial System ◽  
Transmission Mechanism ◽  
Real Economy ◽  
Strategic Action ◽  
Vector Error Correction ◽  
Monetary System ◽  
Vector Error ◽  
The Relationship

The transmission mechanism of monetary policy has been an area of abundant economic researchin many countries. The financial system links monetary policy and the real economy. Thus, events ortrends that affect the financial system can also change the monetary transmission mechanism. This studytries to analyze shariah transmission mechanism in Indonesian dual monetary system, using Vector AutoRegression (VAR) and Vector Error Correction Model (VECM) methods.Results show that the relationship between SWBI (SBI Shariah) and shariah financing (LNFINCG) isnegative. It means, when SWBI be higher, the quantity of shariah financing would be lower. And so do SBI and inflation (LNIHK). When the total of shariah financing be increase, it will gives positive contributionfor reducing inflation rate in Indonesia, because with this system possibility to make equal growth among monetary and real sectors appears. Therefore, it will be strategic action for monetary authority to grow up shariah banking share in Indonesia, for minimizing "bad inflation" in economy. Other recommendation, SWBI as shariah monetary instrument should be reconsidered to achieve positive impact for real sector.

scholarly journals The Time-Varying Effect of Monetary Policy on Asset Prices

2020 ◽  
Vol 102 (4) ◽  
pp. 690-704 ◽  
Author(s):  
Pascal Paul
Keyword(s):  
Monetary Policy ◽  
Asset Prices ◽  
House Prices ◽  
The United States ◽  
Model Parameters ◽  
Time Varying ◽  
Real Economy ◽  
Monetary Policy Shocks ◽  
Vector Autoregressive ◽  
Policy Shocks

This paper studies how monetary policy jointly affects asset prices and the real economy in the United States. I develop an estimator that uses high-frequency surprises as a proxy for the structural monetary policy shocks. This is achieved by integrating the surprises into a vector autoregressive model as an exogenous variable. I use current short-term rate surprises because these are least affected by an information effect. When allowing for time-varying model parameters, I find that compared to the response of output, the reaction of stock and house prices to monetary policy shocks was particularly low before the 2007–2009 financial crisis.

scholarly journals INTERNALISASI SEKTOR PERBANKAN DALAM MODEL DSGE

2014 ◽  
Vol 17 (1) ◽  
pp. 23-60
Author(s):  
Harmanta Harmanta ◽  
Nur M. Adhi Purwanto ◽  
Fajar Oktiyanto Oktiyanto
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Banking Sector ◽  
Small Open Economy ◽  
Jel Classification ◽  
Capital Adequacy ◽  
Macroprudential Policy ◽  
Financial Friction ◽  
Policy Bank ◽  
The Impact

We build DSGE model for small open economy with financial friction in the form of collateral constrain on banking sector, designed for Indonesian economy. The constructed model is capable to simulate the monetary policy (Bank Indonesia rate) and macroprudential policy (reserve requirement, capital adequacy ratio – CAR, and loan to value – LTV). By internalizing banking sector into the model, this model also enable us to simulate the impact of any shock originated from banking sector.  Keywords: monetary policy, DSGE with banking sector, macroprudential policy JEL Classification: E32, E44, E52, E58 

Quality of Life of the Russian Citizens: from Strategy of Development of the Banking Sector to Targeting

2015 ◽  
Vol 4 (3) ◽  
pp. 15-22
Author(s):  
Сотников ◽  
N. Sotnikov
Keyword(s):  
Quality Of Life ◽  
Monetary Policy ◽  
Banking Sector ◽  
Statistical Data ◽  
Transmission Mechanism ◽  
Strategic Objectives ◽  
Strategy Of Development ◽  
Russian Economy ◽  
Banking Business

In modern conditions of one of cardinal problems of increasing of competitiveness of the Russian economy is the formation of strategic potential of the banking sector as most important element of financial branch. It is impossible to increase demand for the credits and profitability of banks in short terms against the worsening economic situation without the competitive monetary policy representing a component of economic policy of the state. The modern monetary policy in Russia is connected with change of a paradigm of development of the banking sector: from aspiration to expand banking business due to aggressive marketing technologies to improvement of quality of bank assets. The main strategic objectives of this sector are increasing of welfare of the population and ensuring the maximum employment. In article the analysis of influence of the tools of a monetary policy used by the Central Bank of Russia on quality of life of the Russian citizens is given. On the basis of the analysis of statistical data the conclusion is drawn that specifics of the Russian economy, discrepancy of external and internal conditions and insufficient development of the transmission mechanism cause objective need of transition from targeting of an exchange rate, inflation to targeting of quality of life of the Russian citizens. Targeting of quality of life has advantages before alternative strategy of a monetary policy.

scholarly journals ВОПРОСЫ ОЗДОРОВЛЕНИЯ БАНКОВСКОГО СЕКТОРА КАЗАХСТАНА

2019 ◽  
pp. 17-20
Author(s):  
Н. А. Гумар ◽  
Г. К. Жанибекова
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Stability ◽  
Stress Testing ◽  
Banking Sector ◽  
Rehabilitation Program ◽  
Wide Range ◽  
National Bank

Monetary policy is affected by a slowdown in economic growth. In the formation of financial stability cannot do without measures to improve the banking sector.Obviously, the accumulation of risks in this area is fraught with the inability of the banking sector to show resilience to external shocks.The banking sector rehabilitation program in Kazakhstan is a wide range of activities, including the assessment of the quality of banks 'assets, so-called stress testing, and support for SLBs from the resources of the National Bank, provided that they are capitalized by second-level banks' shareholders.The main directions of the Program are: increasing the financial stability of the system-forming bank; Increasing financial stability of large STBs and change the regulatory and supervisory environment to improve the financial stability of the banking sector.

scholarly journals Stability of gold standard and its selected consequences: a comment

2021 ◽  
pp. 159-175
Author(s):  
David Howden
Keyword(s):  
Money Supply ◽  
Gold Standard ◽  
Free Market ◽  
Jel Classification ◽  
Austrian Economics ◽  
New Production ◽  
Monetary System ◽  
Natural Break ◽  
Small Economy ◽  
Second World

Kvasnicˇka (2007) attempts to demonstrate that the gold standard may be an unlikely alternative for small economies to revert to. The crux of his argument deals with supply considerations that could prove fatal to a fledgling currency. An influx of gold from the world’s existing gold stock, or its new production could prove to be a destabilising supply-side factor undermining the usability, and hence, adoption, of such a monetary system. We find fault with this for two main theoretical reasons. First, a distinction must be made between gold stock, and monetary gold. Second, the mechanism that creates monetary gold works as a natural break on unrestrained supply growth. Several additional clarifications are necessary as well, among them the role money supply plays in the trade cycle, and the casual relationship that exists between supply and price. Finally, an insightful comparison used linking monetary gold in a small economy to the use of cigarettes in a Second World War P.O.W. camp must be slightly altered to make a true comparison. Kvasnicˇka does a great service to free-marketers by providing a theoretical attack on the choice of gold as a medium of exchange, however, in light of this paper’s theoretical conclusions, the free-market defence of commodity money endures. JEL Classification: B53 – Austrian Economics, E42 – Monetary Systems, E51 – Money Supply.

scholarly journals Asset prices - An Austrian Perspective

2021 ◽  
pp. 57-93 ◽  
Author(s):  
Philipp Bagus
Keyword(s):  
Monetary Policy ◽  
Asset Prices ◽  
Asset Price ◽  
Central Banks ◽  
Jel Classification ◽  
Austrian Economics ◽  
Business Cycle Theory ◽  
Austrian Business Cycle Theory ◽  
Price Bubble ◽  
Austrian Business Cycle

Abstract: How asset prices should be taken into account in monetary policy is a controversial question in mainstream discussion. These mainstream positions can be differentiated into two broad perspectives: the proactive and the reactive views. The proactive view advocates pricking the asset price bubble, while the reactive view argues against monetary policy targeting asset prices. In this article the relation between asset prices and the Austrian business cycle theory is examined. Following this, a critique of both the proactive and reactive views is provided and implications for monetary policy are deduced. Key words: Austrian Economics, Business Cycles, Asset Prices, Central Banks and their Policies. JEL Classification: B53, E32, E58.

scholarly journals The role of the czech national bank monetary instruments in interest rates targeting during transition

2001 ◽  
Vol 10 (1) ◽  
Author(s):  
Zdeněk Dvorný
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Market Economy ◽  
Banking Sector ◽  
Free Market ◽  
Policy Instruments ◽  
National Bank

In this paper, the recent development of Czech interest rates during the Czech Republic's transition to a market economy is discussed. First, the situation in the economy and in the banking sector, as well as the monetary policy of the central bank during the period of 1990 - 1999 is presented. However, the main focus is on monetary policy instruments and their application during transition. The paper also describes the targeting of the central bank's policy by using direct limitations in banking during 1990 - 1991 and refinancing instruments exploited during the period of 1991 - 1992. Finally, the central bank's orientation towards free market operations, starting in 1993, is discussed.

scholarly journals Sentiment in Central Banks’ Financial Stability Reports*

2020 ◽  
Author(s):  
Ricardo Correa ◽  
Keshav Garud ◽  
Juan M Londono ◽  
Nathan Mislang
Keyword(s):  
Monetary Policy ◽  
Systemic Risk ◽  
Financial Stability ◽  
Asset Prices ◽  
Banking Sector ◽  
Banking Crises ◽  
Central Banks ◽  
Percentage Point Increase ◽  
Financial Cycle ◽  
Point Increase

Abstract We use the text of financial stability reports (FSRs) published by central banks to analyze the relation between the sentiment they convey and the financial cycle. We construct a dictionary tailored specifically to a financial stability context, which classifies words as positive or negative based on the sentiment they convey in FSRs. With this dictionary, we construct financial stability sentiment (FSS) indexes for thirty countries between 2005 and 2017. We find that central banks’ financial stability communications are mostly driven by developments in the banking sector. Moreover, the sentiment captured by the FSS index explains movements in financial cycle indicators related to credit, asset prices, systemic risk, and monetary policy rates. Finally, our results show that the sentiment in central banks’ communications is a useful predictor of banking crises—a one percentage point increase in FSS is followed by a twenty-nine percentage point increase in the probability of a crisis.

scholarly journals Measuring the Quality of Money

2021 ◽  
Author(s):  
Vytautas Žukauskas
Keyword(s):  
Monetary Policy ◽  
Price Level ◽  
Central Banks ◽  
Composite Indicator ◽  
Institutional Framework ◽  
Demand For Money ◽  
Gradual Decline ◽  
Monetary System ◽  
Separate Channel

This article explains the theoretical importance of the quality of money as a factor of the demand for money and develops the composite indicator that measures the quality of money for the eurozone. The demand for money, i.e., the amount of money people keep in their balances, besides other well-known factors (e.g., interest rate, price level, and income) depends on how people subjectively perceive a particular money’s ability to serve its main functions: a medium of exchange, a store of value, and the unit of account. These properties depend not only on the instruments of monetary policy and the extent to which they are used, but also on the institutional framework of the monetary system. The article suggests that the quality of money is influenced by the institutional framework and monetary policy and that thus the quality of money is a separate channel for the transmission of money policy that works not through the usual mechanism of changing the supply of money, but through central banks affecting the demand for money. An important contribution of this article is that it develops an empirical composite indicator, which measures the quality of money in the eurozone in 1999–2019 and shows the gradual decline in the quality of euro.

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