From “Ōkuma Finance” to “Matsukata Finance,” 1873–1881

2020 ◽  
pp. 9-27
Author(s):  
Steven J. Ericson
Keyword(s):  
Central Bank ◽  
Financial Policy ◽  
Economic Policies ◽  
Critical Difference ◽  
Large Measure ◽  
Finance Minister ◽  
Foreign Borrowing ◽  
Fiscal Retrenchment ◽  
Currency Reform

This chapter examines the transition from the expansionary policies of Ōkuma Shigenobu to the contractionary ones of Sano Tsunetami as background to the Matsukata reform, which in large measure ended up combining his predecessors' approaches. It shows the critical difference between the Ōkuma and Matsukata approaches to financial policy. Ōkuma sought to engineer a rapid currency reform using the proceeds from overseas bond issuance while applying the savings from austerity to continue the expansionary economic policies he had pursued as finance minister. The adoption of his new foreign-borrowing scheme in the summer of 1881 signaled a softening of official commitment to fiscal retrenchment. Matsukata intended to continue the Sano initiatives with the exception of borrowing abroad and founding a British-style central bank. Yet in practice he would diverge from much of the Sano austerity program in ways that differed from both classical and neoliberal orthodoxy.

scholarly journals With a Bang, not a Whimper: Pricking Germany's “Stock Market Bubble” in 1927 and the Slide into Depression

2003 ◽  
Vol 63 (1) ◽  
pp. 65-99 ◽  
Author(s):  
Hans-Joachim Voth
Keyword(s):  
Stock Market ◽  
Central Bank ◽  
Stock Prices ◽  
Money Market ◽  
Short Term ◽  
Real Effects ◽  
Foreign Borrowing ◽  
Relative Stabilization

In May 1927, the German central bank intervened indirectly to reduce lending to equity investors. The crash that followed ended the only stock market boom during Germany's relative stabilization 1924–1928. The evidence strongly suggests that the German central bank under Hjalmar Schacht was wrong to be concerned about stock prices—there was no bubble. Also, the Reichsbank was mistaken in its belief that a fall in the market would reduce the importance of short-term foreign borrowing and improve conditions in the money market. The misguided intervention had important real effects. Investment suffered, helping to tip Germany into depression.

scholarly journals The Success of Currency Reforms to End Great Inflations: An Empirical Analysis of 34 High Inflations

2009 ◽  
Vol 10 (2) ◽  
pp. 165-175 ◽  
Author(s):  
Peter Bernholz ◽  
Peter Kugler
Keyword(s):  
Twentieth Century ◽  
Exchange Rate ◽  
Central Bank ◽  
Empirical Analysis ◽  
Probit Model ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Market Economies ◽  
Fixed Exchange Rate ◽  
Currency Reform

Abstract The estimation of an ordered probit model for currency reforms attempting to end 31 hyperinflations and three huge inflations of the twentieth century shows that the introduction of an independent central bank and the adoption of a credibly fixed exchange rate are crucial for the success of a currency reform. In addition, currency reforms are demonstrated to be more difficult in centrally planned economies than in market economies.

Divisions plague Libya's financial institutions

2016 ◽  
Keyword(s):  
Central Bank ◽  
Financial Institutions ◽  
Oil And Gas ◽  
Political Crisis ◽  
The Political ◽  
Economic Policies ◽  
Strong Basis ◽  
Content Type ◽  
Basic Services ◽  
Oil And Gas Companies

Subject Divisions in financial institutions. Significance The finance ministry of the UN-backed Government of National Accord (GNA) on December 21 called for an urgent meeting of the board of the Central Bank of Libya. More effective financial institutions could provide a strong basis for political reunification and economic revival. Yet the political crisis, corruption and pre-existing weaknesses undermine these institutions. Impacts The GNA will struggle to finance consistent basic services and implement coherent economic policies. Libyans will continue to lose confidence in the GNA, especially if the economy does not pick up. The NOC will still court international oil and gas companies to attract new investment.

scholarly journals Shankar Acharya and Rakesh Mohan (eds.) India’s Economy—Performance and Challenges: Essays in Honour of Montek Singh Ahluwalia. New Delhi: Oxford University Press, 2010. xv+465 pages.

2010 ◽  
Vol 49 (2) ◽  
pp. 153-158
Author(s):  
Rashid Amjad
Keyword(s):  
Strong Support ◽  
Reform Process ◽  
New Delhi ◽  
Economic Policies ◽  
Ruling Elite ◽  
Reform Agenda ◽  
Oxford University ◽  
Finance Minister ◽  
The World Bank ◽  
Deputy Chairman

This volume comprises a compilation of essays written by distinguished Indian economists, and international economists and observers on India, in honour of Montek Singh Ahluwalia, an eminent economist and currently Deputy Chairman, Planning Commission, widely recognised as one of the main architects and drivers of the economic reform process. In a very well-written Introduction to this festschrift, capturing the essence of the contributions to the volume and weaving them into an excellent overview, Shankar Acharya and Rakesh Mohan state, “Indeed the story of India’s economic policies over the past three decades could easily be woven around Montek’s career as the pre-eminent government economist through most of this time”. This role is earlier acknowledged in the foreword to the volume by the current Indian Prime Minister, Manmohan Singh, the initiator of the overall reform process as Finance Minister from 1991-96, when Montek (as he is popularly known) worked under him in important positions. This recognition also finds strong support amongst the authors, who were close associates of Montek in policy-making, as they recount the role he played in both shaping and driving the economic policy reform agenda. How a small but well-knit team of economists, most of whom had earlier worked in the World Bank or the IMF, could actually achieve this in a country as large and complex as India would baffle any observer. While the book provides no explicit answer, the reform process appears to have initially found favour in response to the economic crisis in 1991. The process then gained momentum as the reforms showed measurable success, and this helped win over the trust and confidence of the political ruling élite.

scholarly journals The price stability oriented monetary policy of the European Central Bank

2010 ◽  
Vol 13 (3) ◽  
pp. 5-15
Author(s):  
Wojciech Gasiński ◽  
Anna Misztal
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
European Central Bank ◽  
Central Banks ◽  
Primary Objective ◽  
Price Stability ◽  
Economic Policies ◽  
European Central ◽  
Consumer Prices ◽  
European System

The aim of this paper is to present the price stability oriented monetary policy of the European Central Bank. The European Central Bank began activities in 1998 and the primary objective of the European System of Central Banks is to maintain price stability and the ESCB should also support the general economic policies in the Community. Monetary policy is a special tool that national governments and central banks uses to influence on its economy, especially to control the supply of money and to influence on the level of economic indicators. This paper investigates the assumed objective of the European System of Central Banks which is to maintain price stability. What is more, we would like to present the monetary policy strategy of the European Central Bank and analysis of the Harmonized Index of Consumer Prices.

scholarly journals Manajemen Ekonomi Islam dalam Menangani Pandemi Coronavirus Disease (COVID-19) di Indonesia

2020 ◽  
Vol 5 (1) ◽  
pp. 117
Author(s):  
Yenti Sumarni
Keyword(s):  
Qualitative Research ◽  
Economic Policy ◽  
Central Bank ◽  
Research Methods ◽  
Qualitative Research Methods ◽  
Financial Policy ◽  
Fund Flows ◽  
Natural Conditions ◽  
The Third ◽  
The Government

This COVID-19 case can affect macroeconomic aspects in general. In this journal, aspects of previously published by McKibbin and Wilcoxen will be developed of Warwick McKibbin and Roshen Fernando. In this Journal will analyze sharia management on transactions using money by the Central Bank, nominal wages and financial policy. The journal uses qualitative research methods with natural research methods because the research is conducted in natural conditions. The findings of this study are First, transactions using the central bank. The concept of Islamic economics, transactions using official money issued by the government. money is used in transactions for activities that work and works as a precaution in an emergency conversation. Second, the nominal payment has been realized properly in accordance with the Islamic economy, it can be seen from the policies set by the government and related ministries. The third concerning economic policy has objectives related to Islamic economics. For further research, it is expected to conduct research on asset accounts and fund flows and the merging of two different models between households and companies so that aspects of McKibbin and Wilcoxen can be full analyzed.

Moldovan government grits its teeth for recession

2020 ◽  
Keyword(s):  
Central Bank ◽  
Board Members ◽  
Economic Downturn ◽  
Economic Policies ◽  
Health Crisis ◽  
Content Type

Significance A recent reshuffle raises questions about whether government can avoid returning to old problems of infighting and nepotism; this is important if IMF support is to continue. Until then, the cabinet managed to confound fears that its economic policies were anti-reform and pro-Moscow. Impacts Dodon has hinted that the November election in which he will seek a second presidential term might be postponed. The 2014 banking theft of 1 billion dollars looks set to haunt politics again with the arrest of four central bank board members. Separatist Transnistria will suffer in parallel from the health crisis and ensuing economic downturn.

Financial Stabilization in Meiji Japan

2020 ◽  
Author(s):  
Steven J. Ericson
Keyword(s):  
Financial Reform ◽  
Financial Reforms ◽  
Meiji Japan ◽  
Economic Liberalism ◽  
Finance Minister ◽  
Neoliberal Reforms ◽  
Fiscal Retrenchment ◽  
The World ◽  
Classical Economic ◽  
State Responses

With a new look at the 1880s financial reforms in Japan, this book overturns widely held views of the program carried out by Finance Minister Matsukata Masayoshi. The book shows, rather than constituting an orthodox financial-stabilization program—a sort of precursor of the “neoliberal” reforms promoted by the IMF in the 1980s and 1990s—Matsukata's policies differed in significant ways from both classical economic liberalism and neoliberal orthodoxy. The Matsukata financial reform has become famous largely for the wrong reasons, and the book sets the record straight. It shows that Matsukata intended to pursue fiscal retrenchment and budget-balancing when he became finance minister in late 1881. Various exigencies, including foreign military crises and a worsening domestic depression, compelled him instead to increase spending by running deficits and floating public bonds. Though he drastically reduced the money supply, he combined the positive and contractionary policies of his immediate predecessors to pull off a program of “expansionary austerity” paralleling state responses to financial crisis elsewhere in the world both then and now. Through a new and much-needed recalibration of this pivotal financial reform, the book demonstrates that, in several ways, ranging from state-led export promotion to the creation of a government-controlled central bank, Matsukata advanced policies that were more in line with a nationalist, developmentalist approach than with a liberal economic one. It shows that Matsukata Masayoshi was far from a rigid adherent of classical economic liberalism.

Borrowing Agreement with Norges Bank

Policy Papers ◽  
2009 ◽  
Vol 09 ◽  
Author(s):  
Keyword(s):  
Central Bank ◽  
Balance Of Payments ◽  
Financial Resources ◽  
Executive Board ◽  
Current Crisis ◽  
Finance Minister ◽  
Ministry Of Finance ◽  
The Imf

This paper presents for the approval of the Executive Board a draft borrowing agreement between Norges Bank and the Fund. On March 28, the Finance Minister of Norway announced that the Ministry of Finance and Norges Bank (the central bank of Norway) were exploring a possible Norwegian contribution of up to 30 billion Norwegian kroner (about US$4.5 billion or SDR 3 billion) of financial resources to the IMF to support the Fund’s ability to provide timely and effective balance of payments assistance to its members in the current crisis. Staff and Norges Bank representatives have now reached agreement on a draft borrowing agreement, the text of which is set forth in the Attachment (“the Agreement”).

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