scholarly journals The Effectiveness of Credit Policy: Evidence from the Republic of Korea

2019 ◽  
Vol 36 (1) ◽  
pp. 206-224
Author(s):  
Jiho Lee
Keyword(s):  
Great Recession ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Republic Of Korea ◽  
Real Economy ◽  
Credit Policy ◽  
Policy Makers ◽  
Advanced Economies ◽  
The Republic ◽  
The Global Financial Crisis

In response to the global financial crisis and subsequent Great Recession, central banks embarked on a variety of unconventional measures. Among others, credit policy has been widely employed in many advanced economies. However, credit policy is far less understood than unconventional monetary policy by both policy makers and academic scholars. This paper sheds new light on what credit policy is, how it differs from other central bank policies, and what its risks and limitations might be. In particular, I examine whether credit policy has been effective in stimulating the real economy in the Republic of Korea.

scholarly journals What Has Publishing Inflation Forecasts Accomplished? Central Banks and Their Competitors

2019 ◽  
pp. 736-778 ◽  
Author(s):  
Pierre L. Siklos
Keyword(s):  
Global Financial Crisis ◽  
Central Banks ◽  
Output Gap ◽  
Great Moderation ◽  
Confidence Set ◽  
Short Term ◽  
Inflation Forecasts ◽  
Advanced Economies ◽  
The Global Financial Crisis ◽  
Model Confidence Set

This chapter explores short-term sources of inflation forecast disagreement in nine advanced economies. Domestic versus global factors among other determinants are considered. The chapter also adapts an idea from the model confidence set approach to obtain a quasi-confidence interval for inflation forecast disagreement. Some forecasters may change their outlook, especially when data are frequently revised (e.g., the output gap). This extension is also considered. Estimates of disagreement are found to be sensitive to the chosen benchmark, and central banks need not always be the benchmark of choice. The range of forecast disagreement can be high even when levels of disagreement are low. There is little evidence that forecasts are strongly coordinated with those of the central bank. Finally, at least over the period considered, which covers the end of the Great Moderation and the global financial crisis, there is consistent evidence that global factors impact forecast disagreement.

scholarly journals Contagion effects of the global financial crisis in us and European real economy sectors

2014 ◽  
Vol 61 (3) ◽  
pp. 275-288 ◽  
Author(s):  
Dimitris Kenourgios ◽  
Dimitrios Dimitriou
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Global Financial Crisis ◽  
Regional Analysis ◽  
Real Economy ◽  
Policy Makers ◽  
Contagion Effects ◽  
Market Contagion ◽  
Show Evidence ◽  
The Global Financial Crisis

This paper empirically investigates the contagion effects of the Global Financial Crisis (2007-2009) from the financial sector to the real economy by examining nine sectors of US and developed European region. We provide a regional analysis by testing stock market contagion on the aggregate level and the sector level, on the global level and the domestic/regional level. Results show evidence of global contagion in US and developed European aggregate stock market indices and all US sector indices, implying the limited benefits of portfolio diversification. On the other hand, most of the European regional sectors seem to be immune to the adverse effects of the crisis. Finally, all non-financial sectors of both geographical areas seem to be unaffected by their domestic financial systems. These findings have important implications for policy makers, investors and international organizations.

scholarly journals Short-Selling Bans and the Global Financial Crisis: Are They Interconnected?

2018 ◽  
Vol 64 (2) ◽  
pp. 159-177
Author(s):  
Martin T. Bohl ◽  
Badye Essid ◽  
Pierre L. Siklos
Keyword(s):  
Financial Crisis ◽  
Stock Prices ◽  
Global Financial Crisis ◽  
Short Selling ◽  
Equity Returns ◽  
Policy Makers ◽  
Advanced Economies ◽  
The Individual ◽  
The Global Financial Crisis ◽  
Jel Classifications

Abstract This paper begins with the observation that short-selling bans spread globally in 2008. We find some evidence that the bans were unsuccessful at least insofar as they did not take into account the global component a short-selling ban which reduced equity returns in about a third of the 17 countries sampled, most notably in some of the major advanced economies. In the individual countries we examine, the bans had relatively little impact. Our results are suggestive as evidence that the bans stemmed further deterioration in stock prices that policy makers sought to avoid, at least in a few economies. JEL classifications: G10, G12 Keywords: Short-selling bans, spillovers, stock markets, dynamic conditional correlations

scholarly journals Gold Reserve Policies of Selected Central Banks After the Global Financial Crisis: A Comparative Analysis

2018 ◽  
Author(s):  
Zehra Vildan Serin ◽  
Erişah Arıcan ◽  
Başak Tanınmış Yücememiş
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Gold Reserve ◽  
Bank Reserves ◽  
The Republic ◽  
The Global Financial Crisis ◽  
Republic Of Turkey

After the global financial crisis, central banks have changed attitudes towards gold and have unconventional policy measures, in addition to conventional interest rate cuts. With these measures central banks aimed to support financial stability, and to reduce to potential adverse effects from international capital flows. From the perspective of investors and central banks gold positions and gold reserves are still significant and debatable issues. The purpose of this study is to investigate the composition of central bank reserves the period of 2008 and 2018. In this paper, generally we compared gold reserve holdings of major central banks with Turkey. The Central Bank of the Republic of Turkey (CBRT) has increased gold reserves especially since 2002. With implementing effective policies, CBRT has increased gold holdings in international reserves. CBRT is one of the countries with the highest share of gold reserves in the world.

Is Globalization Reducing the Ability of Central Banks to Control Inflation? A Literature Review with an Application to the Euro Area

2016 ◽  
Vol 67 (3) ◽  
Author(s):  
Salomon Fiedler ◽  
Nils Jannsen ◽  
Stefan Reitz ◽  
Maik Wolters
Keyword(s):  
Monetary Policy ◽  
Literature Review ◽  
Euro Area ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Price Stability ◽  
Review Of The Literature ◽  
Inflation Target ◽  
Advanced Economies ◽  
The Global Financial Crisis

AbstractGlobalization influences inflation and the transmission channels of monetary policy in various ways. The effects of globalization on the ability of monetary policy to control inflation have been discussed intensively. However, in the light of recent experiences following the global financial crisis with extended periods of disinflation in many advanced economies, the question whether the ability of monetary policy to control inflation has suffered significantly from increasing globalization has received new relevance. Based on a review of the literature, this paper discusses whether globalization is reducing the ability of central banks to control inflation and draws conclusion for the current situation in the euro area. We find that globalization has made it more complicated for central banks to ensure price stability and that it has tended to reduce the ability of monetary policy to control inflation in the short- to medium-run. However, in principle the ECB is still able to control inflation but may have to tolerate deviations from its inflation target for somewhat longer periods.

From Financial Crisis to Great Recession: The Role of Globalized Banks

2012 ◽  
Vol 102 (3) ◽  
pp. 225-230 ◽  
Author(s):  
Shekhar Aiyar
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Bank Credit ◽  
Real Economy ◽  
Bank Of England ◽  
Bank Funding ◽  
The Global Financial Crisis

This paper provides evidence of the role of globalized banks in transmitting financial stresses to the real economy during the global financial crisis. A novel dataset is constructed from quarterly balance sheet reports provided by all UK-resident banks to the Bank of England. I find that the shock to bank funding from non-resident creditors was transmitted domestically through a significant reduction in bank credit supply. Resident subsidiaries and branches of foreign-owned banks reduced lending by a larger amount than domestically-owned banks, while the latter calibrated the reduction in domestic lending more closely to the size of the funding shock.

On the formation of a New Paradigm of fiscal Policy

2013 ◽  
pp. 152-158 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Real Economy ◽  
New Paradigm ◽  
Monetary Aggregate ◽  
The Past ◽  
The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

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