What Should Be the Role of Fiscal and Monetary Policies for Development? Full Employment IV

2012 ◽  
pp. 189-226
Author(s):  
Jesus Felipe
Keyword(s):  
Full Employment ◽  
Monetary Policies

scholarly journals Digitalization, Multinationals and Employment: An Empirical Analysis of Their Causal Relationships

2019 ◽  
Vol 239 (3) ◽  
pp. 399-439 ◽  
Author(s):  
Antonio G. Gómez-Plana ◽  
María C. Latorre
Keyword(s):  
Information And Communication Technologies ◽  
Computable General Equilibrium ◽  
Full Employment ◽  
Communication Technologies ◽  
Real Wages ◽  
Computable General Equilibrium Models ◽  
Positive Effects ◽  
High Unemployment Rate ◽  
Information And Communication

Abstract This study measures the effects of digitalization related to Information and Communication Technologies (ICT) investment on employment and other economic variables according to firms‘ ownership. We present two computable general equilibrium models (with full employment and with unemployment) which differentiate two types of firms: National and foreign multinationals (MNEs). Both types of firms allow for the substitution between labour and ICT capital. We conclude that ICT investments significantly create jobs and raise real wages, GDP and welfare. The aggregate positive effects are stronger for ICT investment in national firms than in foreign MNEs although the sign of some sectoral effects can be negative. We also analyze the role of wage flexibility in this context, with the most favorable results related to scenarios where wages are more rigid for both cases, when investors are national firms or foreign MNEs. The model is applied to the case of Spain, a country with a high unemployment rate where ICT investment has been large since the mid 1990s.

scholarly journals Institutional Failure, Monetary Scarcity, and the Depreciation of the Continental

1988 ◽  
Vol 48 (1) ◽  
pp. 47-68 ◽  
Author(s):  
Charles W. Calomiris
Keyword(s):  
Economic Welfare ◽  
Monetary Policies ◽  
The Real ◽  
Institutional Failure ◽  
Paper Money ◽  
Government Involvement ◽  
Over Time ◽  
The Revolution

The efforts of some American colonials, who complained of monetary scarcity and advocated increased government involvement in supplying paper money, were valid attempts to improve economic welfare and facilitate transactions. The potential for improvement depended crucially on the fiscal and monetary policies of colonial governments. This approach to monetary scarcity is useful for explaining variation in the real supply of money across colonies and over time. The role of fiscal and monetary policies in determining the changing value of the continental, and the consequences for real currency supply during and after the Revolution, are examined in detail.

Argentina Currency Peg and Fiscal Reforms (A)

2017 ◽  
pp. 1-4
Author(s):  
Nabil Al-Najjar ◽  
Simone Galperti
Keyword(s):  
World War Ii ◽  
Currency Crises ◽  
Market Regulation ◽  
Government Control ◽  
Monetary Policies ◽  
Inflation Rates ◽  
Fiscal Reforms ◽  
Base Management ◽  
Currency Pegs

Case (A) starts by reviewing several attempts made by three consecutive Argentine governments between 1973 and 1989 to fight the three-digit inflation rates that had troubled the country since the end of World War II. Next, the implementation of the currency peg under the broad umbrella called the “convertibility plan” is discussed and its rationale is explained in connection with the Central Bank's role in controlling inflation and market expectations. The case then outlines the fiscal reforms introduced in the early 1990s concerning public finance, market regulation, and social security. Finally, the outcomes of these policies are briefly summarized.Argentina's currency collapse provides a vivid illustration of the perils of government control on exchange rates in an export-dependent economy. Students will learn and understand (1) the role of herding and expectations in currency collapse; (2) the interdependence of fiscal and monetary policies; (3) monetary base management and its effects on inflation; (4) the advantages and drawbacks of currency pegs; (5) the story of the late 1990s financial and currency crises.

scholarly journals A Natural Experiment in Monetary Policy Covering Three Episodes of Growth and Decline in the Economy and the Stock Market

2005 ◽  
Vol 19 (4) ◽  
pp. 145-150 ◽  
Author(s):  
Milton Friedman
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Stock Market ◽  
Stock Prices ◽  
Natural Experiment ◽  
National Income ◽  
The United States ◽  
Monetary Policies ◽  
Rapid Economic Growth

The third of three episodes in a major natural experiment in monetary policy that started more than 80 years ago is just now coming to an end. The experiment consists in observing the effect on the economy and the stock market of the monetary policies followed during and after three very similar periods of rapid economic growth in response to rapid technological change: the booms of the 1920s in the United States, the 1980s in Japan and the 1990s in the United States. In this experiment, the quantity of money is the counterpart of the experimenter's input. The performance of the economy and the level of the stock market are the counterpart of the experimenter's output. The results of this natural experiment are clear, at least for major ups and downs: what happens to the quantity of money has a determinative effect on what happens to national income and to stock prices. The results strongly support Anna Schwartz's and my 1963 conjecture about the role of monetary policy in the Great Contraction. They also support the view that monetary policy deserves much credit for the mildness of the recession that followed the collapse of the U.S. boom in late 2000.

scholarly journals Monetary Policies and Full Employment

1947 ◽  
Vol 13 (4) ◽  
pp. 428
Author(s):  
Joseph J. Spengler ◽  
William Fellner
Keyword(s):  
Full Employment ◽  
Monetary Policies

scholarly journals Monetary Policy within a COVID-19 Environment: The Role of Central Banks and the Main Challenges for the Euro-zone

2021 ◽  
Vol 27 (2) ◽  
pp. 197-212
Keyword(s):  
Interest Rate ◽  
Crisis Management ◽  
Financial Stability ◽  
Inflation Rate ◽  
Central Banks ◽  
Environmental Crisis ◽  
Monetary Policies ◽  
Health Crisis ◽  
Euro Zone

The last financial crisis in 2008 has weakened the Euro-zone countries. Most of them were deeply affected, and their economic growths have not returned to their pre-crisis rates. Moreover, the inflation rate is still very low despite the European Central Bank’s interventions. Twelve years later, a health crisis occurred. The ECB have reacted to this event by using monetary tools. We can cite for example the famous temporary Pandemic Emergency Purchase Programme (PEPP) to save the Euro-zone countries from a systemic disaster. The current interest rate is negative, and it seems to raise some questions about the efficiency of policies and the threat to economic, monetary, and financial stability. Negative interest rate may also generate the next crisis. This paper is dedicated to recommendations based on the role of Central Banks in the health crisis management and, more generally, environmental crisis management instead of evaluating the impacts of the monetary policies on Eurozone countries because it is too early to measure with acuity the COVID-19 effects.

scholarly journals The Economic Crisis and the Role of External Audit: The Case of Greece

2020 ◽  
Vol 8 ◽  
pp. 179-190
Author(s):  
Victoria A. Zgouva ◽  
Dimitrios S. Varsos ◽  
Nikitas A. Assimakopoulos
Keyword(s):  
Tax Evasion ◽  
Systems Approach ◽  
Global Financial Crisis ◽  
Monetary Policies ◽  
Efficient Operation ◽  
The Great Depression ◽  
History Of ◽  
External Auditor ◽  
The Global Financial Crisis

The global financial crisis of 2008 has been rivaled only by the Great Depression of the 1930s. The breadth and duration of this crisis had an adverse impact on every national economy, reflecting the systemic interdependence of an interconnected economic ecosystem, and the strengths and weaknesses of individual countries, regions, and monetary policies. The economic crises was particularly disparaging to the Greek state, which has a long history of excessive public spending, massive tax evasion, wage growth not supported by proportional productivity, and unsustainable debt levels. The health of the economy was further eroded as a result of a lack of confidence that was driven by questionable accounting practices and the misreporting of economic performance indicators by successive governments. The Court of Audit of the Hellenic Republic1 operates as the independent external auditor for the Greek state. Its effective and efficient operation within its mandated boundaries will be instrumental in the nation’s economic recovery and a key preventing measure to arrest financial mismanagement in the future. This work will describe the context in which the CoA carries out its activities, and will explore the means through which the organization can apply a systems approach to its structure, function, and management paradigm for the purpose of reinforcing its strategic, operational, and tactical capacity.

scholarly journals The Role Of Turkish Central Bank During And After The 2008-Financial Crises

2011 ◽  
Vol 10 (12) ◽  
pp. 93
Author(s):  
Ayhan Guney
Keyword(s):  
Central Bank ◽  
Financial Crises ◽  
Central Banks ◽  
Fiscal Policies ◽  
Monetary Policies ◽  
The World ◽  
One Year ◽  
Short Time ◽  
Time Spread

The Global Financial Crises occurred at the end of 2008, and in very short time, spread to all sectors of economy.All countries were badly hit by the crises and the World economies shrank almost $50 trillion, the equivalent of one year of world GDP.During the process, especially the banking sectors of the world economies was smashed, and many banks and financial institutions bankrupted and some others liquidated such as Lehman Brothers. All countries took the drastic fiscal and monetary measures to overcome the global crises. So, this paper focuses on the functions of central banks asking that what the role of central banks to cope with the global crises was, and thus omits the side of fiscal policies implemented by different countries.It especially discusses the role of Turkish Central Bank and its monetary policies during and after the 2008-Global Financial Crises. What was the achievement of the measures taken and the monetary policies implemented by Turkish Central Bank during and after the financial crises?

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