Money Supply and Economic Activities in Malaysia

This study examined how economic activities affect the direction of money supply in Malaysia. The overnight policy rate is the interest rate set by Bank Negara Malaysia (BNM) as its monetary policy tool. Based on the Keynesian Economic Theory, the autoregressive distributed lag (ARDL) model was applied to analyse how the industrial production index, interest rate and consumer price index influenced money supply. The findings of this study supported the notion that economic growth significantly affected the money supply in the short run. There was no evidence of such a relationship in the long run. Maintaining a stable money supply is vital to limit adverse variations in economic activity. A stable money supply allows Malaysia to respond effectively during difficult times, especially the current covid19 pandemic.

Macroeconomic assessment of possible Green Recovery scenarios in Visegrad countries

The article discusses how and why Green Recovery could be beneficial for the Visegrad countries based on a modelling exercise using the E3ME macroeconometric model. Green Recovery is defined as including policies in recovery plans that not only target economic recovery, but also contribute to environmental targets. The paper proposes that a Green Recovery could be valuable and suitable for the region contributing to both restoring employment and boosting economic activity as well as reaching climate goals. This is tested through a macroeconomic simulation, using the E3ME model. E3ME is built on Post-Keynesian economic theory and on econometric estimations of macroeconomic relationships. The results of the analysis focus on three dimensions: (1) social – employment, (2) environmental – level of CO2 emissions and (3) economic activity – gross domestic product (GDP). Outcomes indicate that a green recovery can shorten the time needed for employment and economic recovery as well as contributes to CO2 emission reductions. In Hungary, Czechia and Poland, the impact persists into the long-term; however, the paper also concludes that countries with high reliance on coal (e.g. Poland) could return to coal in the long term if no further policies are introduced.

Analyzing the Impact of Financial Services Authority (OJK) Regulations in Supporting Economy Recovery During Covid-19 Pandemic: Evidence from Indonesia

COVID-19 has disrupted economic growth and business conditions globally including in Indonesia. One of the most obvious impacts is in the banking sector as many bank debtors have lost their livelihoods. This situation affects the quality of bank assets and profitability. An increase of non-performing loans experienced by some national banks has decreased the capability to generate optimal profit from bank operations that normally would keep the banks healthy, liquid, solvent, and in a profitable state. To strengthen the stability of Indonesian financial services and support the national economic recovery effort, the Financial Services Authority (OJK) issued several regulations on macroprudential policy relaxation and stimulus provision. The regulations ensure that banks are capable to control the bad credit of the debtors affected by the COVID-19 pandemic. This study aims to analyze the impact of Financial Service Authority Regulations on the quality of banking credit in supporting the Indonesian economic recovery during the COVID-19 pandemic. This is a qualitative study using a critical thinking analysis method to prove the assumption of Keynesian economic theory, which state that in a recession expansionary fiscal policy can stimulate economic activity. The results of this study indicate that the Financial Services Authority regulations have shown an impact in supporting the Indonesian economy recovery efforts amid the COVID-19 pandemic, which can be seen through the stability of the financial system. Further empirical and quantitative studies are needed to confirm the study findings.

Bretton Woods and the Keynesian State

This chapter challenges the traditional international political economy (IPE) interpretation of Bretton Woods, which views it as the marker for a new era of US hegemony. Stressing the “uneven interdependence” characteristic of the postwar Anglo-American relationship, it reveals the continuing mutual dependencies between the two states and their expression within the formation of Bretton Woods. The UK's role in the creation and dynamics of Bretton Woods went far beyond the ideas of John Maynard Keynes. The continued importance of both sterling as a major international currency and of the financial infrastructure contained within the City of London, allied to the international limits of private US finance, ensured that the development of UK capitalism continued to be fundamental to postwar international finance. Tracing the struggle between economic orthodoxy and emergent Keynesian ideas within the national political economies of the UK and the US, the chapter shows that the continuing relevance of pre-Keynesian economic orthodoxy—represented most influentially by transatlantic bankers—laid the basis for the subsequent undermining of Bretton Woods and the relaunching of financial globalization from the 1950s.

Inflation control and adequacy of targeting to economic growth policy

The paper studies the relationship between inflation and economic growth. The subject of the research is the correlation between price dynamics and economic growth in the context of two main approaches – Fischerian and Schumpeterian – that describe such a relationship. The methodological and theoretical basis embraces the advances in the field of inflation of the neoclassical and Keynesian economic schools. The research method is the construction of an econometric model that allows identifying the effect of such a policy as inflation targeting. The study proves that in the Russian economy, there is no obvious relationship established between inflation and the product created, that is Fischer’s growth model, where inflation has to be suppressed to stimulate growth, is not justified. The developed analytical model of the relationship between inflation and the growth rate achieved when introducing a tough regulation – the targeting rule followed by monetary authorities – confirms that the targeting policy is indifferent to the ratio of aggregate supply and demand. Pursuing this policy can push up costs and heighten inflationary pressure. This method to control inflation is rather ineffective as the actions aimed at lowering inflation will produce the opposite effect fueling it. We conclude that, if targeting is used as a sort of anti-inflationary policy, the target should be altered to the situation and at least be put within certain limits to enable the economy to adapt to the dynamic change in the rest of its parameters.

Introduction: new histories of Labour and the left in the 1980s

In 1980, notwithstanding the defeat of the Labour government the year before, the political left in its various forms remained a major presence in British life. Local government, the media, trade unions, pressure groups, the arts and academia: all were often dominated by left-of-centre voices that created networks of opposition to the recently elected Conservative government of Margaret Thatcher. Since the reforming Labour government of 1945, the liberal left had some reason to believe that it had shaped the orthodoxies of modern Britain with the welfare state, Keynesian economic policy and the liberal reforms that abolished censorship and challenged gender and racial discrimination. It was still possible, in 1980, for some to believe that a socialist future beckoned....