Analysis of the Relationship between Currency Redenomination and Financial Transaction Costs in Nigeria

The study analyses the relationship between currency redenomination and financial sector transaction costs in Nigeria using a sample of 200 respondents from ten financial institutions. Applying the Chi-square test, the study reveals that high currency redenomination removes wasteful transactions removes user costs (difficulties arising from memorizing, calculating and carrying large sum of lowest denominations: coins and smaller notes). The results also show that currency redenomination influences inflationary pressure and currency liberalization in Nigeria. Based on the findings the study recommends the introduction of currency redenomination to facilitate the consumers' cash payment and reduce the cost incurred by producers and issuing authorities, and also make payment system more efficient and effective.

Impact of socioeconomic development on inflation in South Asia: evidence from panel cointegration analysis

Purpose This study aims to examine the influence of socioeconomic development on inflation in South Asia using the foreign exchange rate and money supply as control variables. Design/methodology/approach The study uses annual panel data for five South Asian economies, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka over the period 1990–2018, applies cointegrating regression techniques, namely, the panel dynamic ordinary least square (OLS) and fully modified OLS estimators to examine the long-run relations and conducts the Toda-Yamamoto Granger causality test to detect the direction of causality among variables. Findings The cointegrating regression estimations have documented that the socioeconomic development proxied by the human development index (HDI) has no significant impact on inflation. Although economic development represented by gross domestic product (GDP) growth causes inflation, socioeconomic development represented by HDI has no impact on inflation and has demonstrated as a better macroeconomic indicator, and thus creates no inflationary pressure in the economy. The foreign exchange rate has a positive impact on inflation. The broad money supply has the usual positive effect on domestic inflation that endorses the monetarist view about prices. The Toda-Yamamoto Granger causality test has confirmed several unidirectional causalities: inflation causes HDI, money supply causes both inflation and HDI and the foreign exchange rate causes HDI. Practical implications The study has practical implications for policymakers in South Asia, to improve HDI, particularly GDP per capita, education and health-care facilities to realize continuous socioeconomic development, which will take care of inflation. Moreover, these counties may follow a conservative monetary policy to control inflationary pressure in their economies. Originality/value The study is original and claims to be the first to examine the impact of socioeconomic development on inflation. The findings have socioeconomic values regarding controlling inflation in South Asia.

The effect of minimum wage and inflationary pressure on youth unemployment in Nigeria

This study carried out an empirical investigation on the impact of minimum wage and inflationary pressure on youth unemployment in Nigeria from 1991 to 2019 using the Autoregressive Distributed Lag method to estimate the multiple regression model. The model captured the impact of Inflation, GDP Growth Rate, FDI, Government Expenditure, and Minimum Wage as determinants of youth unemployment in Nigeria. The results show that minimum wage exerts a significant impact on youth unemployment in the country, whereas inflation does not significantly influence youth unemployment. These results disapprove argument in the literature that supports minimum wage as an income policy to improve the welfare of workers in Nigeria because it raises the youth unemployment level in the country. Hence, the study concludes that minimum wage determination should be market-based. With this, the study recommends that the Nigerian government seek alternative measures of improving workers’ welfare and reduce youth unemployment in the country. Keywords: Minimum Wage, Inflation, Youth Unemployment

Sudan fuel prices will aggravate inflationary pressure

Headline SUDAN: Fuel prices will aggravate inflation pressure

Full Employment, Unconditional Basic Income and the Keynesian Critique of Rentier Capitalism

This paper compares and contrasts the basic income proposal with the alternative policy proposal of the state acting as employer of last resort. Two versions of the UBI proposal are distinguished: one is hard to differentiate from expanded welfare state provision. Van Parijs’s proposal is radical enough to qualify as major egalitarian revision to capitalism. However, while it removes from a capitalist class the power to determine the terms on which others labour, it leaves this class in place and able to exert other powers that distort the macro-economy. These include pecuniary emulation, demand pull inflation, and political resistance to full employment so that the rentier class does not have to contend with entrepreneurs *and* the working class over the distribution of the productive surplus. The state as employer of last resort proposal addresses these deeper issues while also claiming that inflationary pressure will undermine the UBI alternative.

Economic impact of fluctuations in oilsardine landings in India

The Indian oilsardine Sardinella longiceps (Valenciennes, 1847) is a significant contributor to the marine fisheries economy of India. The species showed wide fluctuations in landings in the past and during recent years, the decline in landings is an issue of concern for sustainable harvest of the resource especially in the context of climate change regime. The paper analysed the economic impacts of fluctuations in oilsardine landings in terms of gross earnings realised at landing centre and retail levels; inflation in the domestic markets and external trade during the 2000-2018 period. The analysis indicated that the decline in landings was more in the state of Kerala as compared to all India landings. The inflation at point of first sales (landing centre level) was more during 2000-09 period whereas at retail market level inflation was highest during 2010-2018. The inflationary pressure on domestic consumers in Kerala was more during 2010-2018 period. The growth in external trade of sardines was in tune with the Indian oilsardine landings in the country.

New Kazakh leader will prioritise caution over change

Subject Challenges facing Kazakhstan under a new president. Significance When Kassym-Jomart Tokayev secured a comfortable victory in the June 9 presidential election, the vote was most notable for the new mood surrounding it: popular anger at lacklustre socio-economic development and the emergence of a new generation of political activists. In response, Tokayev's administration is weighing options for cooling passions and addressing popular grievances. Impacts Further spending will increase the budget deficit and add inflationary pressure. In the current economic climate, events such as disasters, protests and labour disputes have the potential to escalate dramatically. The government will continue to pursue inward investment despite limited reforms.

Botswana

A technical assistance (TA) mission was conducted by AFRITAC South (AFS)1 during February 4–15, 2019 in response to a request from Statistics Botswana (SB) to assist with updating the consumer price index (CPI) and to review progress with the development of the producer price index (PPI). A previous mission to assist with developing PPIs was held in April–May 2018. A broad range of representative price indexes are essential in understanding inflationary pressure in the economy and to better-inform economic policy making by the authorities. An updated CPI more broadly reflects current consumption patterns of households in Botswana and meets the requirements of the Southern Africa Development Community. National accounts have expressed the need for PPIs to develop more reliable volume estimates of economic growth for Botswana.