COVID-19 Pandemic Recession, Policy Response, and Recovery: A Canadian Perspective

The purpose of this paper is to explain the economic impact of the Covid-19 pandemic on Canada's economy and the response by the monetary authority. We also explain a potential adjustment process on the way to recover from the pandemic recession.

COVID-19 Pandemic Recession, Policy Response, and Recovery: A Canadian Perspective

The purpose of this paper is to explain the economic impact of the Covid-19 pandemic on Canada's economy and the response by the monetary authority. We also explain a potential adjustment process on the way to recover from the pandemic recession.

Resource endowments and the problem of small change: insights from two American mints, 1600–1700

This article discusses historical evidence from the Potosi mint and Massachusetts Bay mint that illustrates the importance of the resource endowment (in this case silver) for the provision of small change. We show that the availability of silver was fundamental in shaping incentives. The relative scarcity of silver in Massachusetts Bay contributed to the small scale of the mint's operations, and implied that neither the monetary authority nor the mintmaster faced a significant tradeoff between drawing seigniorage from the mint and the production of small-denomination coins. In contrast, in the Viceroyalty of Peru, the abundance of silver, and the consequent large level of production of the mint's heavy peso coin, heightened the tradeoff between the fiscal and monetary objectives of the coinage. We suggest that these incentives negatively affected the production of fractionary coinage in the Peruvian viceroyalty, whereas in Massachusetts Bay the production of small-denomination coins was the norm.

The role of the Palestine monetary authority in combating money laundering

Purpose This paper aims to highlight the role of the Palestine Monetary Authority (PMA) in combating money laundering. The discussion will focus on the sectors under the PAM authority by examining the issued instructions. Design/methodology/approach The current study is a pure legal study. The methodology used in this paper is the qualitative approach by focussing on the doctrinal mechanism. Thus, it focussed on procedures, processes, laws, and regulations. Findings This paper found serious organisational inefficiencies within the governance framework of anti-money laundering (AML) for both the currency exchange and specialised lending institutions sectors. Moreover, the PMA’s role in combating money laundering is insufficient where its efforts are limited by random inspection visits and the installation of surveillance cameras in the money changers shops. Practical implications The findings may influence both the currency exchange and specialized lending institutions sectors to adopt a more vigilant approach to prevent the occurrence of money laundering in Palestine and to undertake more responsibility in ensuring compliance with the current AML legal framework. The study also highlighted that their current practice might place them in danger of non-compliance. Originality/value The paper demonstrated in, an exceptional way, the role of the PMA in combating money laundering by focussing on both legal and regulatory requirements for the three sectors under the PMA supervision authority. This paper made a valuable contribution to the study of combating money laundering in Palestine, where it is one of the first studies dealing with this issue involving this country.

Inflation and innovation value: How inflation affects innovation and the value strategy across firms

This research analyzes the effects of inflation on R&D investments and innovation-driven growth. For this, an innovation-driven growth model was built in which firms invest own resources and resources from financial institutions. Credit costs depend on the interest rate charged by these institutions. In an inflation-targetingregime, the monetary authority adjusts the nominal interest rate in order to converge current inflation to the established target. It adjusts the interest rate of financial institutions, changing the opportunity cost of investments. As a result, rising inflation promotes a reduction in R&D investments demand, reducing the rate of technological progress. In the empirical exercise of the model, the estimated coefficient of elasticity of R&D investments is negatively affected by inflation.

Respon Dinamis Kurs terhadap Tingkat Bunga di Indonesia

This study is to analyze the dynamic response of exchange rate to interest rate in Indonesia. Yearly data form 2002 to 2018 are used in this study and autoregressive model is utilized to capture dynamic response. The results show that the exchange rate has negative and significant response to interest rate. Furthermore, the effects of interest rate on exchange rate is higher in longrun than short-run. It is suggested to monetary authority to strength the domestic fundamental to achieve more effective of interest rate to stabilize the exchange rate fluctuations.

Evaluating Mergers as a Tool to Strengthen and Modernize the Palestinian Banking System

The study aims at evaluating the banking mergers as a tool to strengthen and modernize the Palestinian banking system by focusing on the national banks listed on the Palestine Stock Exchange using the descriptive-analytical approach as well as the inductive and deductive approaches. The study concludes that the circulars issued by the Palestine Monetary Authority mainly those which relate to the raising of the minimum capital of local banks, have a positive role, and were the main motivation towards these mergers. The mergers that took place in the Palestinian banking sector have resulted in a significant improvement in data and financial indicators as well as the competitiveness of domestic merged banks and reflected positively on the national economy. The study recommends the need to redouble the efforts of the Palestine Monetary Authority by using literary persuasion at certain times, and through the development of laws and regulations that encourage and stimulate mergers to create stronger banking entities that are capable of facing the challenges of competition and financial crises, and other banking risks, at other times. Moreover, national banks and large-scale expatriates must play a more active role in the process of economic development and work to maximize their economic role and expand the value of productive projects that require large funding through granting syndicated loans and establishing joint ventures.

Hong Kong’s Currency and Monetary Policy

This literature review is a synopsis of what has been written on the currency and monetary policy of Hong Kong since its relinquishment from Great Britain in 1999. In particular, this paper examines the role and policies of the Hong Kong Monetary Authority, the island province’s equivalent to a central bank. Since Hong Kong does not have a central bank per se, it is interesting to note how the money supply is created and maintained, and what its relationship is to mainland China. This institution makes Hong Kong unique among developed economies, which typically have a central bank that oversees monetary creation and policy. The Literature Review is composed of two parts: Part One will cover the revaluation of the Hong Kong Dollar with regard to its value relative to the currencies of China, Japan, Europe, and the United States, particularly during financial crises. This part of the literature review will cover the work of Chan (2002), Schenk (2004), Shah (1996), Cook and Yetman (2004), and Ma and Cheng (2014) as they use different measurement methods to monitor the change in the Hong Kong Dollar’s value over time, especially compared to the period before the creation of the Hong Kong Dollar. Part Two will cover the monetary and macro-economic policies and currency board effectiveness of the Hong Kong Monetary Authority in sustaining the value of the Hong Kong Dollar. This part of the literature review will cover the work of Chen (2001), Siregar and Walker (2000), Chen and Tsang (2020), Funke and Paetz (2000), and Huang and Shen (2017). This paper also includes a section on suggestions for future research, including what effect the shift of pegging the Hong Kong Dollar (HKD) to other currencies, such as the Euro or the Japanese Yen, or when interest rates in other countries are set at zero. The paper wraps up with an overview of the literature discussed and possible paths going forward, including recreating the studies over time to see how effective such a maneuver has been in practice when compared to competing currencies. Followers of the Hong Kong Dollar will especially find these results useful as they seek to exchange currencies for the highest value.