Monetary Policy In Low Financial Development Countries

Author : Juan Antonio Morales,Paul Reding
Publisher : Oxford University Press
Page : 360 pages
File Size : 55,9 Mb
Release : 2021-07-22
Category : Business & Economics
ISBN : 9780192597021

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Monetary Policy in Low Financial Development Countries by Juan Antonio Morales,Paul Reding Pdf

Monetary Policy in Low Financial Development Countries provides a broad coverage of the monetary policy issues faced by developing countries with low financial depth. These low and lower middle income countries are characterized by the predominance of bank finance, shallow financial markets, low financial inclusion, weak integration with world capital markets, and a high degree of informality in economic activity. Monetary policy acquires special twists, making it different in many aspects from the policies followed in advanced and emerging market economies. This book covers the main facets of monetary policy making, using an approach that combines discussions of theoretical arguments, of results from empirical studies and of relevant policy experiences. It presents the monetary policy instruments that central banks rely on in these countries. It assesses the specificities of their monetary transmission mechanism, i.e. the way central banks' actions affect output and prices. It evaluates the advantages, drawbacks, and challenges of the different nominal anchors they may choose from: exchange rate targeting, monetary targeting, and inflation targeting. This discussion is set against the background of the three main goals pursued by central banks: price, output, and financial stability. Particular attention is devoted to the issue of the credibility of central banks and to the trade-offs they face when external shocks, to which these countries are very vulnerable, lead to conflicts among the three goals they pursue. The authors also cover more specific topics, such as the coordination between monetary and fiscal policy, the challenges raised by dollarization, the implications of informal labour markets and of microfinance institutions for monetary policy-making, as well as the role of models for forecasting and policy evaluation by central banks.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 74 pages
File Size : 51,5 Mb
Release : 2015-10-23
Category : Business & Economics
ISBN : 9781498344067

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Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries by International Monetary Fund Pdf

Over the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial markets, and stabilized inflation at moderate levels. Monetary policy frameworks that have helped achieve these ends are being challenged by continued financial development and increased exposure to global capital markets. Many policymakers aspire to move beyond the basics of stability to implement monetary policy frameworks that better anchor inflation and promote macroeconomic stability and growth. Many of these LLMICs are thus considering and implementing improvements to their monetary policy frameworks. The recent successes of some LLMICs and the experiences of emerging and advanced economies, both early in their policy modernization process and following the global financial crisis, are valuable in identifying desirable features of such frameworks. This paper draws on those lessons to provide guidance on key elements of effective monetary policy frameworks for LLMICs.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 89 pages
File Size : 49,9 Mb
Release : 2015-10-27
Category : Business & Economics
ISBN : 9781498344050

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Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries — Background Paper — Country Experiences by International Monetary Fund Pdf

This background paper focuses on the experiences of evolving monetary policy frameworks in nine individual countries and three thematic groupings of countries. The country case studies are complemented by analyses of common issues faced by countries in currency unions in the CFA franc zone, selected resource rich countries, and advanced economies and emerging markets during their modernization process of monetary policy regimes. Finally, the background paper also contains a discussion on the benefits of effective communication in conducting monetary policy.

Author : Akampurira Abraham
Publisher : Anchor Academic Publishing (aap_verlag)
Page : 97 pages
File Size : 44,5 Mb
Release : 2013-09
Category : Business & Economics
ISBN : 9783954891382

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Monetary Policy and Public Finance: An Aspect of Development by Akampurira Abraham Pdf

There is a link between the financial development and a real growth of economies. Financial development in combination with a growth in banking stimulates the entrepreneur’s action, and thus transfers resources from the traditional sector to the modern sector. This paper is divided into two sections. Section A is entitled ‘Monetary Economics’, and covers the following topics: Money in the macro economy, demand for money, supply for money, money and inflation, central banking and monetary policy, international financial institutions and policy, monetary market, and the Hansen Hickisian IS-LM curve analysis. Section B covers the topics of public revenue, tax burden, and incidence of taxes, classification and choices of taxes, public debt, public expenditure and public budget.

Author : Akampurira Abraham
Publisher : GRIN Verlag
Page : 126 pages
File Size : 53,9 Mb
Release : 2013-05-15
Category : Business & Economics
ISBN : 9783656429555

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Monetary Policy and Public Finance by Akampurira Abraham Pdf

Lecture Notes from the year 2013 in the subject Economics - Monetary theory and policy, grade: A, Atlantic International University (BUSINESS STUDIES AND ECONOMICS), course: REGIONAL DEVELOPMENT, language: English, abstract: 1.0.Introduction There has been a link between financial development and real growth of economies. Financial development together with growth in banking stimulates entreprenuer action and this transfers resources from the traditional sector to modern sector. This paper is divided into two sections; Section A-Monetary Economics that covers the following topics; Money in the macro economy, Demand for money, Supply for money, Money and Inflation, Central banking and Monetary policy, International Financial Institutions and Policy, Monetary market and the Hansen Hickisian IS-LM curve analysis. Section (B) covers; Public revenue, Tax Burden, Incidence of Taxes, Classification and Choices of Taxes, Public Debt, Public expenditure and Public Budget. Course Objectives: The main objective of the course is to equip learners with analytical skills in understanding the basic concepts of monetary economics in the context of developing countries. It enables students acquire sufficient knowledge of monetary theory and the working of financial institutions that help in carrying out monetary and other macroeconomic policy analysis. The course also equips learners with issues relating to taxation and public expenditure

Author : Warren L. Coats,Deena R. Khatkhate
Publisher : Elsevier
Page : 842 pages
File Size : 43,7 Mb
Release : 2014-05-19
Category : Business & Economics
ISBN : 9781483157306

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Money and Monetary Policy in Less Developed Countries by Warren L. Coats,Deena R. Khatkhate Pdf

Money and Monetary Policy in Less Developed Countries: A Survey of Issues and Evidence focuses on monetary policy, the financial intermediation process, and the role of money in economic development in less developed countries (LDCs). Topics covered include financial development and economic growth in underdeveloped countries; instruments and techniques used in the implementation of monetary policy: and econometric policy models. This book is comprised of 46 chapters and begins with a discussion on the main lines of thought in the field of money and monetary policy in LDCs, with emphasis on the significant empirical results. The reader is then introduced to the role of money in the development process; production and monetization in the subsistence sector; some aspects of financial policies and central banking in developing countries; and the efficacy of monetary rules for LDCs. The subsequent chapters explore monetary policy instruments such as interest rates, credit controls, and exchange rates; credit policy and the balance of payments in developing countries; and price and output behavior in the Indian economy from 1951 to 1973. A semiannual macroeconometric model of the Philippines for the period 1967-1976 is also described. This monograph will be a valuable resource for economists, economic policymakers, and central bankers as well as students.

Author : Sheila Page
Publisher : Routledge
Page : 381 pages
File Size : 43,5 Mb
Release : 2013-10-11
Category : Business & Economics
ISBN : 9781136139161

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Monetary Policy in Developing Countries by Sheila Page Pdf

Developing countries now use monetary policy as part of their adjustment programmes but its targets, the tools, and the theory were developed for advanced countries. Low income countries do not have the sophisticated financial sectors that rich ones can assume, and the shocks and size of adjustment which they face may be much greater. Using six country studies, with special analysis of the roles of the external sector and the informal financial sector, this book analyses the interaction among monetary policy, the financial sector, and development.

Author : Mr.Luis Brandao-Marques,Mr.R. G Gelos,Mr.Thomas Harjes,Ms.Ratna Sahay,Yi Xue
Publisher : International Monetary Fund
Page : 54 pages
File Size : 46,9 Mb
Release : 2020-02-21
Category : Business & Economics
ISBN : 9781513529738

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Monetary Policy Transmission in Emerging Markets and Developing Economies by Mr.Luis Brandao-Marques,Mr.R. G Gelos,Mr.Thomas Harjes,Ms.Ratna Sahay,Yi Xue Pdf

Central banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT). However, questions regarding the strength of monetary policy transmission from interest rates to inflation and output have often stalled progress. We conduct a novel empirical analysis using Jordà’s (2005) approach for 40 EMDEs to shed a light on monetary transmission in these countries. We find that interest rate hikes reduce output growth and inflation, once we explicitly account for the behavior of the exchange rate. Having a modern monetary policy framework—adopting IT and independent and transparent central banks—matters more for monetary transmission than financial development.

Author : Edmund Valpy Knox Fitzgerald,Rob Vos
Publisher : Gower Publishing Company, Limited
Page : 360 pages
File Size : 43,9 Mb
Release : 1989
Category : Business & Economics
ISBN : UOM:39015015462487

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Financing Economic Development by Edmund Valpy Knox Fitzgerald,Rob Vos Pdf

Author : Naoyuki Yoshino,Pornpinun Chantapacdepong,Matthias Helble
Publisher : Oxford University Press, USA
Page : 345 pages
File Size : 54,6 Mb
Release : 2019
Category : Business & Economics
ISBN : 9780198838104

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Macroeconomic Shocks and Unconventional Monetary Policy by Naoyuki Yoshino,Pornpinun Chantapacdepong,Matthias Helble Pdf

Barely two decades after the Asian financial crisis Asia was suddenly confronted with multiple challenges originating outside the region: the 2008 global financial crisis, the European debt crisis, and finally developed economies' implementation of unconventional monetary policies. The implementation of quantitative easing, ultra-low interest rate policies, and negative interest rate policies by a number of large central banks has given rise to concerns over financial stability and international capital flows. Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets explains how shocks stemming from the global financial crisis have affected macroeconomic and financial stability in emerging Asia. Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets brings together the most up-to-date knowledge impacts of recent macroeconomic shocks on Asia's real economy; the spillover effects of macroeconomic shocks on financial markets and flows in Asia; and key challenges for monetary, exchange rate, trade and macro prudential policies of developing Asian economies. It is authored by experts in the field of international macroeconomics from leading academic institutions, central banks, and international organizations including the International Monetary Fund, the Bank for International Settlement, and the Asian Development Bank Institute.

Author : Subrata Ghatak,José R. Sánchez-Fung
Publisher : Red Globe Press
Page : 326 pages
File Size : 41,9 Mb
Release : 2007-08
Category : Business & Economics
ISBN : UCSD:31822034724443

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Monetary Economics in Developing Countries by Subrata Ghatak,José R. Sánchez-Fung Pdf

This book is an introduction to monetary economics with a particular reference to issues relevant for developing economies.

Author : Mr.Alfredo Baldini,Mr.Jaromir Benes,Mr.Andrew Berg,Mai Dao,Rafael Portillo
Publisher : International Monetary Fund
Page : 47 pages
File Size : 54,9 Mb
Release : 2012-04-01
Category : Business & Economics
ISBN : 9781475502848

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Monetary Policy in Low Income Countries in the Face of the Global Crisis by Mr.Alfredo Baldini,Mr.Jaromir Benes,Mr.Andrew Berg,Mai Dao,Rafael Portillo Pdf

We develop a DSGE model with a banking sector to analyze the impact of the financial crisis on Zambia and the role of the monetary policy response. We view the crisis as a combination of three related shocks: a worsening in the terms of the trade, an increase in the country’s risk premium, and a decrease in the risk appetite of local banks. We characterize monetary policy as "stop and go": initially tight, subsequently loose. Simulations of the model broadly match the path of the economy during this period. We find that the initial policy response contributed to the domestic impact of the crisis by further tightening financial conditions. We study the factors driving the "stop" part of policy and derive policy implications for central banks in low-income countries.

Author : Alison Harwood,Bruce Smith
Publisher : Brookings Institution Press
Page : 212 pages
File Size : 40,9 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 0815720955

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Sequencing? by Alison Harwood,Bruce Smith Pdf

The importance of the financial system in economic development has been frequently neglected by analysts and poorly understood by policymakers. Are there policy reforms, or any particular sequence of reform measures, that will contribute to the successful functioning of the financial system and thus spur long-term economic growth? What kind of regulatory changes are appropriate as countries move toward financial liberalization and as government development banks decline in importance compared to private banks and nonbank financial institutions? What broad lessons can be discerned from the experience of financial reform in Asia and Latin America for the transitional countries of Russia and Eastern Europe? The world's financial system has been buffeted in recent years by the crisis in the U.S. savings and loan industry, the implosion of the Japanese "bubble economy" of the late 1980s, the Mexican peso crisis, and other events. The experience of Western nations in adapting to financial liberalization can provide useful insights for the many countries embarking on a course of market reforms and beginning to build the financial infrastructure for a market economy. This volume analyzes the recent financial reforms and reform strategies in Asia, Latin America, Eastern Europe, and Russia. The chapters draw on the extensive practical experience of the authors and reflect the most recent empirical research in the field. The contributors are Gerald Caprio, Jr., Dimitri Vittas, and Ross Levine, the World Bank; David C. Cole and Betty F. Slade, Harvard Institute for International Development; Maxwell J. Fry, University of Birmingham at Edgbaston; Claudio Gonzalez-Vega, Ohio State University; Stephan Haggard, University of California, San Diego; R. Barry Johnston, International Monetary Fund; Philip A. Wellons, Harvard Law School; Lawrence J. White, New York University; and Alison Harwood.

Author : Hang-Sheng Cheng
Publisher : Springer Science & Business Media
Page : 451 pages
File Size : 45,6 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9789400926851

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Monetary Policy in Pacific Basin Countries by Hang-Sheng Cheng Pdf

The chapters in this book are based on papers prepared for a conference organized by the Federal Reserve Bank of San Francisco, held at the bank September 23-25, 1987, to review and compare monetary policy experiences of Pacific Basin countries during the past 15 years. The theme of the conference was conceived with two purposes in mind. First, there was (and still is) a great need to enhance knowledge on the workings of economies in the Pacific Basin, which has been the fastest growing region in the world economy during the past 30 years. While much has been written on Pacific Basin trade and economic growth, relatively few studies have been published on the conduct of monetary policy in these economies. Second, as we in the United States and others elsewhere have learned, rapid financial market changes over the last 15 years have led to considerable adjustment in the conduct of monetary policy. A comparative study of various national experiences can yield insights into the inter actions between monetary policy and financial market changes more than is obtainable by examining indi vidual national experiences separately.

Author : Corinne Deléchat,Lama Kiyasseh,Ms.Margaux MacDonald,Rui Xu
Publisher : International Monetary Fund
Page : 41 pages
File Size : 54,9 Mb
Release : 2020-05-29
Category : Business & Economics
ISBN : 9781513545677

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Drivers of Financial Access: the Role of Macroprudential Policies by Corinne Deléchat,Lama Kiyasseh,Ms.Margaux MacDonald,Rui Xu Pdf

This study analyzes the drivers of the use of formal vs. informal financial services in emerging and developing countries using the 2017 Global FINDEX data. In particular, we investigate whether individuals’ choice of financial services correlates with macro-financial and macro-structural policies and conditions, in addition to individual and country characteristics. We start our analysis on middle and low-income countries, and then zoom in on sub-Saharan Africa, currently the region that most relies on informal financial services, and which has the largest uptake of mobile banking. We find robust evidence of an association between macroprudential policies and individuals’ choice of financial access after controlling for personal and country-level characteristics. In particular, macroprudential policies aimed at controlling credit supply seem to be associated with greater resort to informal financial services compared with formal, bank-based access. This highlights the importance for central bankers and financial sector regulators to consider the potential spillovers of monetary policy and financial stability measures on financial inclusion.