...2012 The Monetary Transmission Mechanism in Nigeria: A Sectoral Output Analysis Philip Ifeakachukwu, NWOSA (Correspondence author) Department of Economics, Accounting and Finance Bells University of Technology, Ota, Ogun State, Nigeria Tel: 234-082-470-7555 E-mail: nwosaphilip@yahoo.com Muibi Olufemi, SAIBU Dept of Economics, Obafemi Awolowo University Ile-Ife, Osun State, Nigeria Tel: 234-085-338-1914 Received: May 31, 2011 doi:10.5539/ijef.v4n1p204 Abstract E-mail: omosaibu@yahoo.com Published: January 1, 2012 Accepted: July 5, 2011 URL: http://dx.doi.org/10.5539/ijef.v4n1p204 The study investigated the transmission channels of monetary policy impulses on sectoral output growth in Nigeria for the period 1986 to 2009. Secondary quarterly data were used for the study while granger causality and Vector Auto-regressive Method of analysis were utilized. The results showed that interest rate channel was most effective in transmitting monetary policy to Agriculture and Manufacturing sectors while exchange rate channel was most effective for transmitting monetary policy to Building/Construction, Mining, Service and Wholesale/Retail sectors. The study concluded that interest rate and exchange rate policies were the most effective monetary policy measures in stimulating sectoral output growth in Nigeria. Keywords: Sectoral output, Monetary transmission channels, Granger causality, VAR model 1. Introduction The channels through which monetary policy impulse is being...
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...Monetary policy in Vietnam: the case of a transition country Ulrich Camen 1 1. Introduction A major objective of the Vietnamese authorities in the coming five years is it to strengthen the integration of the Vietnamese economy into the world economy. An important milestone has been the Vietnam-US Bilateral Trade Agreement, BTA. A subsequent milestone will be Vietnamese membership in the WTO, which is under preparation and expected for 2006. As part of this process of internationalisation, Vietnam is also opening its financial sector to foreign financial institutions. Currently, foreign banks have already started to provide banking services in Vietnam. Internationalisation will pose major challenges for financial sector polices, underlining the importance of further progress with financial sector reforms and reforms of monetary policy. This paper will present the current status of the reform of monetary policy in the context of economic and financial sector developments in Vietnam and identify key reform issues with respect to monetary policy. Section 2 will give a brief overview of principal economic and financial developments to situate monetary policy in the context of economic developments in Vietnam. Section 3 describes the monetary policy framework currently in use in Vietnam, and Section 4 presents empirical results on the determinants of inflation and the role of monetary factors. 2. 2.1 Background: macroeconomic developments Economic growth and inflation ...
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...Solutions for exchange rate policy of transition economy of Vietnam Dissertation zur Erlangung des Grades Doktor der Wirtschaftswissenschaft (Doctor rerum politicarum, Dr. rer. pol.) der Juristischen und Wirtschaftswissenschaftlichen Fakultät der Martin-Luther-Universität Halle-Wittenberg vorgelegt von M.A. Mai Thu Hien geb. am 23. August 1976 in Hanoi, Vietnam Gutachter: 1. Prof. Dr. Dr. h.c. Rüdiger Pohl, Martin-Luther-Universität Halle-Wittenberg 2. Prof. Dr. Martin Klein, Martin-Luther-Universität Halle-Wittenberg Datum der Einreichung: 07.06.2007 Datum der Verteidigung: 12.07.2007 Halle (Saale), Juli 2007 urn:nbn:de:gbv:3-000012127 [http://nbn-resolving.de/urn/resolver.pl?urn=nbn%3Ade%3Agbv%3A3-000012127] 2 Acknowledgements This doctoral dissertation could not be completed if I have not received the help and encouragement from numerous people. Firstly, I am greatly indebted to my first supervisor, Prof. Dr. Dr. h.c. Rüdiger Pohl, who kept an eye on the progress of my work and was always available when I needed his advices. His great advices, supports, criticisms, comments, and encouragement helped me to develop necessary knowledge to understand and to build theoretical context in this dissertation. I also would like to express my deep gratitude to Prof. Dr. Martin Klein, my second supervisor, for his suggestions and concerns with my dissertation. I gratefully acknowledge the financial support of DAAD, without which this dissertation would not have been...
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...First International Symposium on Data, Analysis of Current E-Payment Solution in China--Third Party Payment Platform Nie Jin School of Information Management Wuhan University Wuhan P.R.China 430072 Email: nie_jin@yahoo.com from Master Card and Visa [5]. This paper presented that establish an effective credibility guarantee system is important to the e-business development in China. Based on the analysis of different payment systems a third party payment platform is one way to avoid credibility and security pitfalls in e-business monetary transaction in China at present. Abstract—Electronic business and especially electronic payment systems have been flourished in the past decades. Securely transfer monetary value can establish e-business participants’ confidence and facilitate the e-transaction process. Establishing the guaranteed credibility system can effectively strengthen the electronic business growth. This paper presented that setting up an efficient credibility system will improve Chinese e-commerce environment. Implementing the third party payment platform would be one of the effective solutions to Chinese e-business monetary transactions at present. Key words: electronic payment system, third party payment platform, credibility system I. II. Credibility has always been a virtue in Chinese culture. China used to be under central planned economy. Central government controlled the whole nation’s economic activities and guaranteed...
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...Monetary Policy in Vietnam: Alternatives to Inflation Targeting Le Anh Tu Packard (tu.packard@gmail.com) Fifth Draft July 2007 Paper prepared for the Political Economy Research Institute (PERI) at the University of Massachusetts, Amherst with support from the United Nations Department of Economic and Social Affairs (UNDESA). Earlier versions of this paper were presented to the May 2005 CEDES/Amherst Research Conference in Buenos Aires and the July 2005 Da Nang Symposium on Continuing Renovation of the Economy and Society. Financial support for this project has been provided by the Ford Foundation, UNDESA, and the Rockefeller Brothers Foundation. My gratitude and thanks go to two anonymous referees, Gerald Epstein, Erinc Yeldan, Jaime Ros, Lance Taylor, Per Berglund, and Phillipe Scholtes for their insightful comments and valuable ideas, and also to numerous colleagues in Vietnam including Dang Nhu Van for their helpful feedback. I am responsible for all remaining errors and omissions. List of Acronyms and Abbreviations ASEAN BFTV BIDV CEPT CIEM CMEA CPRGS DAF FDI FIE GC GDI GDP GNP GSO HDI IMF JV NEER ODA PE PER PRGF PRSC RCC REER ROSCA SBV SOCB SOE UCC UNDP VCP VLSS WTO Association of South East Asian Nations Bank for Foreign Trade of Vietnam Bank for Investment and Development of Vietnam Common Effective Preferential Tariff Central Institute for Economic Management Council of Mutual Economic Assistance Comprehensive Poverty Reduction and Growth Strategy Development...
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...................................................................................................................... iv 1. Introduction ....................................................................................................................... 1 2. China’s macroeconomic imbalances ................................................................................. 2 3. China’s external imbalance ............................................................................................. 14 4. Reviewing the export surplus .......................................................................................... 22 5. The external surplus and foreign exchange reserves ....................................................... 23 6. Policies to correct the imbalance ..................................................................................... 31 7. Are the imbalances sustainable? ...................................................................................... 39 8. Conclusion...
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...beliefs and the western society started in the early 1970’s, it has incorporated in the society to such an extent that it can be portrayed as being impending. For more than forty years now neoliberalism has controlled governments, technology, housing and financial sector and has impacted our society in destructive ways. Neoliberalism reached a new height after the 2008 financial crisis leaving recession as an aftermath. Neoliberalism as explained by Harvey (2005) is a model of private enterprise which concentrates on the economy and its deregulation to empower a free market based monetary framework. Hillyard and Tombs (2004) see neoliberalism as a destruction breeding form of capitalism which they think makes a commanding dispute for, the state demanding to be considered in charge of methodically creating destruction. Neoliberalism as indicated by David Harvey is a "hypothesis of political monetary works on recommending that human prosperity can best be progressed by the augmentation of entrepreneurial opportunities inside of an institutional system portrayed by private property rights, individual freedom, unhampered markets, and free trade" (2005:2). The idea of neoliberalism in western social orders is connected with the Thatcher government in the UK and the Reagan government in the US which came to power in the late 1970s – mid 1980s henceforth presenting neoliberalism as a key financial guideline inside of free enterprise (Harvey, 2005). After World War II and ‘The Great...
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...y reformsFiscal Policy Reforms since the 1990s The fiscal imbalances of the 1980s spilled over to the external sector resulting in the macroeconomic crisis of 1991. Another disquieting feature of the fiscal system was the large size of monetised deficit, which in turn exerted inflationary pressures. The reforms aimed at augmenting revenues and removing anomalies in the tax structure through restructuring, simplification and rationalisation of both direct and indirect taxes. Deterioration of the fiscal situation and increased dissaving of Government administration by the latter half of the 1990s renewed the urgency for improving public finances at both Centre and State levels, particularly, in view of the need to benchmark Indian codes and practices to international standards in the aftermath of its membership to G-20 group of countries. The Central Government, through the enactment of the Fiscal Responsibility and Budget Management (FRBM) Legislation in August 2003, set for itself a rule-based fiscal consolidation framework. Expenditure Reform Commissions set up by the Government also suggested a host of measures to curb built-in-growth in expenditure and to bring about structural changes in the composition of expenditure. Fiscal Reforms - Central Government Revenue Pattern and Tax Reforms The revenue pattern of the Central Government shows that the gross tax revenue-GDP ratio, which had fallen to 8.8 per cent during 2000-04 from 10.3 per cent during 1995-2000,...
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...Research Paper No. 2006/54 Central Banks as Agents of Economic Development Gerald Epstein* May 2006 Abstract In the last two decades, there has been a global sea change in the theory and practice of central banking. The currently dominant ‘best practice’ approach to central banking consists of the following: (1) central bank independence (2) a focus on inflation fighting (including adopting formal ‘inflation targeting’) and (3) the use of indirect methods of monetary policy (that is, short-term interest rates as opposed to direct methods such as credit ceilings). This paper argues that this neo-liberal approach to central banking is highly idiosyncratic in that, as a package, it is dramatically different from the historically dominant theory and practice of central banking, not only in the developing world, but, notably, in the now developed countries themselves. Throughout the early and recent history of central banking in the US, England, Europe, and elsewhere, financing governments, managing exchange rates, and supporting economic sectors by using ‘direct methods’ of intervention have been among the most important tasks of central banking and, indeed, in many cases, were among the reasons for their existence. The neo-liberal central bank policy package, then, is drastically out of step with the history and dominant practice of central banking throughout most of its history. Keywords: financing, institutions, central banks, history, development JEL classification: E5, N2, O2 ...
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...O C C A S I O N A L PA P E R S E R I E S N O 1 2 3 / F E B R UA RY 2 011 THE INTERNATIONAL MONETARY SYSTEM AFTER THE FINANCIAL CRISIS by Ettore Dorrucci and Julie McKay OCCASIONAL PAPER SERIES NO 123 / FEBRUARY 2011 THE INTERNATIONAL MONETARY SYSTEM AFTER THE FINANCIAL CRISIS by Ettore Dorrucci and Julie McKay1 NOTE: This Occasional Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. In 2011 all ECB publications feature a motif taken from the €100 banknote. This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=1646277 1 European Central Bank, Ettore.Dorrucci@ecb.europa.eu, Julie.McKay@ecb.europa.eu. The views expressed in this paper do not necessarily reflect those of the European Central Bank. The authors would like to thank, outside their institution, A. Afota, C. Borio, M. Committeri, B. Eichengreen, A. Erce, A. Gastaud, P. L'Hotelleire-Fallois Armas, P. Moreno, P. Sedlacek, Z. Szalai, I. Visco and J-P. Yanitch, and, within their institution, R. Beck, T. Bracke, A. Chudik, A. Mehl, E. Mileva, F. Moss, G. Pineau, F. Ramon-Ballester, L. Stracca, R. Straub, and C. Thimann for their very helpful comments and/or inputs. © European Central Bank, 2011 Address Kaiserstrasse 29 60311 Frankfurt am Main, Germany...
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...witnesses that it has invariably led concerned economies into deep recession, unemployment, loss of public confidence, domestic and international trade reversal and even capital flight. The regulatory authorities engaged in watching and monitoring health of concerned economies have to proactively respond to mitigate and resolve the crises. There could be different causes for financial crises such as ongoing double digit inflation / uncontrolled monetary expansion, unsustainable internal or external public debt, excessive credit booms, large capital inflows, large current account deficits, balance sheet weaknesses due to maturity mismatches of public debts, fall out of impracticable exchange rate mechanism followed and currency crises (3). The selection of ways and means of mitigating and resolving a financial crisis and accelerating economic recovery is dependent upon root causes leading to financial crises. The policy options selected by regulatory authorities may be debatable. The debate could emanate from objectives of the policy or consequences / results. Object focus debates revolve around reducing the fiscal costs of financial crises or limiting the economic costs or achieving long-term, structural reforms. The result focused debates revolve around restoring the public confidence and economy, restoring growth or achieving of desired restructuring....
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...trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments. Most of the issues that the WTO focuses on derive from previous trade negotiations, especially from the Uruguay Round (1986–1994). The organization is currently endeavoring to persist with a trade negotiation called the Doha Development Agenda (or Doha Round), which was launched in 2001 to enhance equitable participation of poorer countries which represent a majority of the world's population. However, the negotiation has been dogged by "disagreement between exporters of agricultural bulk commodities and countries with large numbers of subsistence farmers on the precise terms of a 'special safeguard measure' to protect farmers from surges in imports. At this time, the future of the Doha Round is uncertain." The WTO has 153 members representing more than 97% of total world trade and 30 observers, most seeking membership. The WTO is governed by a ministerial conference, meeting every two years; a general council, which implements the conference's policy decisions and is responsible for day-to-day administration; and a director-general, who is appointed by the ministerial conference. The WTO's headquarters is at the Centre William Rappard, Geneva, Switzerland. [pic] History Timeline of the...
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...TABLE OF CONTENTS INTRODUCTION 3 CHAPTER 1: BACKGROUNDS 4 1. Definition of Foreign Exchange (FOREX) 4 2. Features of Foreign Exchange (FOREX) 5 3. Forex categories: 5 4. Main participants in the foreign exchange market 6 4.1. Foreign exchange dealers 6 4.2. Financial and non-financial customers 7 4.3. Central banks 7 4.4. Brokers 8 4.4.1. In the Over-the-Counter Market 8 4.4.2. Voice Brokers 8 4.4.3. Automated Order-Matching or Electronic Broking Systems 8 4.4.4. In the Exchange-Traded Market 9 CHAPTER II: Situation of currency market in Vietnam 9 1.Roles of the SBV in controlling the currency market 9 2. Some basic features about the currency market in Vietnam from 1991 to 2011 12 2.1. The currency inter-bank market in Vietnam 12 2.1.1. The introduction of currency inter-bank market in Vietnam 12 2.1.2. The role of inter-bank transactions 14 2.1.3 The organization and operation of the currency market in Vietnam 15 2. Transactions in the parallel market and dollarization in Vietnam 15 2.1. Transactions in the parallel in Vietnam 15 2.2. Dollarization in Vietnam 16 3. Some description about the derivatives in Vietnam’s currency market 17 3.1. The introduction of derivatives in Vietnam 17 3.2. Changes of exchange rate. 19 CHAPTER III: SOLUTIONS 23 1. Shut down the black market 23 2. Implement a semi-peg system...
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...pragmatic solutions to environmental concerns by means of global governance as an international collective. “The distinct characteristics of global governance lies in the assumption that the effective handling of problems is no longer the exclusive responsibility of government but of joint activities by governments, international and supranational institutions.” This understanding of global interconnectedness has incited the creation of numerous organizations, institutions and international environmental initiatives, specifically the Kyoto Protocol. However, environmental impediments have not seen notable improvements and can be attributed to the flaws of global environmental governance. Firstly, contributing to the failure of environmental policies is the ineffective structure of the Kyoto Protocol. Furthermore, with the rise of globalization, neoliberal ideals have prioritized market successes at the detriment of the environment and international environmental initiatives. Lastly, the international environmental governing body of the United Nations Environment Programme (herein referred to as UNEP) lacks legitimacy, organization and corroborated influence. This paper asserts the fundamental flaws and failures of environmental global governance in efforts of controlling and improving environmental degradation. Although there have been many initiatives taken to...
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...REPORT ON Monetary Policy of Bangladesh PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY Monetary Policy of Bangladesh SUBMITTED TO M. Kazi Tamim Rahman Lecturer Department of Agricultural Economics and Rural Sociology Faculty of Business Administration and Management SUBMITTED BY Group: 01(Warrior) Level-3, Semester-1 Faculty of Business Administration and Management Name of the students | Reg. No. | Roll No. | Md. Kamruzzaman (L) | 00660 | 01 | Shuvradeb Barai | 00668 | 09 | Abu Zafour | 00680 | 21 | Sahana Parveen | 00666 | 07 | Nazmul Alam Siddiqui | 00565 | 25 | Money and Banking Course code: FBK 312 SUBMISSION DATE: PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY Acknowledgement At first we desire to express our deepest sense of gratitude of almighty Allah. With profound regard we gratefully acknowledge our respected course teacher M. Kazi Tamim Rahman, Lecturer, Department of Agricultural Economics and Rural Sociology, Faculty of Business Administration and Management, for his generous help and day to day suggestion during the preparation of this report. We like to give thanks especially to our friends and many individuals, for their enthusiastic encouragements and helps during the preparation of this report us by sharing ideas regarding this subject and for their assistance in typing and proof reading this manuscript. Table of Contents Chapter – 1 ...
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