scholarly journals Money Supply, Credit Expansion, and Housing Price Inflation

2010 ◽  
Vol 2010 (6) ◽  
Author(s):  
Yi Wen
Keyword(s):  
Money Supply ◽  
Housing Price ◽  
Credit Expansion ◽  
Price Inflation

scholarly journals Credit Risk Models For Five Major Sectors In Indonesia

2018 ◽  
Vol 20 (4) ◽  
pp. 376-396
Author(s):  
Ndari Surjaningsih ◽  
Ina Nurmalia Kurniati ◽  
Reni Indriani
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Manufacturing Industry ◽  
Housing Price ◽  
Nominal Exchange Rate ◽  
Economic Sectors ◽  
Commodity Trade ◽  
Price Inflation ◽  
Credit Risks ◽  
Main Driver

This paper analyze Nonperforming Loan ratio to total credit (NPL), as a proxy forcredit risk, for five major economic sectors by utilizing panel data of 117 commercialbanks in Indonesia over period 2000Q1 to 2016Q3. Our empirical analysis shows thatreal economic growth is the main driver that is negatively correlated with credit risksin all sectors. The inverse relation is also found in commodity and housing price.Commodity price inflation affects NPL in manufacturing industry and trade sectors,meanwhile housing price inflation influences NPL in manufacturing industry, trade,and construction sectors. In addition, decreased in policy rate will decline credit riskin commodity, trade, and other sectors, meanwhile nominal exchange rate only affectscredit risks in other sector. Our assessment shows that credit risks in commodity andother sectors are more sensitive to real economic growth than those on manufacturingindustry and trade sectors. Real economic growth elasticities to credit risk forcommodity and other sectors are almost twice higher than for manufacturing industryand trade sectors. Thus, during economic contraction phase, NPL in commodity andother sectors will increase higher than NPL in manufacturing industry and tradesectors.

scholarly journals Conflicting Interests and Structural Inflation: TUrkey, 1980-1990

1993 ◽  
Vol 32 (3) ◽  
pp. 303-327 ◽  
Author(s):  
A . Erinc Yeldan
Keyword(s):  
General Equilibrium ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Aggregate Demand ◽  
General Equilibrium Model ◽  
Equilibrium Analysis ◽  
Nominal Wage ◽  
Credit Expansion ◽  
Price Inflation ◽  
National Output

The paper analyses the structural causes of the recent Turkish inflationary episode. It is argued that monetary policies based on credit tightening alone are not likely to yield the desired target of price stabilisation. Instead. it is hypothesised that the underlying sources of price inflation are affected by income inequality and conflicting claims on national output; and that excessive credit expansion serves mainly to accommodate the inertial inflation thereby originated in the real sector. Given this hypothesis. the paper employs a computable general equilibrium model to investigate four distinct sources of structural inflation for the Turkish economy: (i) the profit/rent inflation based on monopolistic mark-Ups over prime costs; (ii) imported inflation due to the import-dependent structure of the domestic industry; (iii) cost-push and demand inflation due to urban wage claims; and (iv) inflation that results from the fiscal pressures of the government's budget deficits. The general equilibrium model is in the Keynesian tradition in determining the production level by aggregate demand constraints. Furthermore. it accommodates oligopolistic mark-up rules and working capital expenses for price determination. and nominal wage fixity to determine the level of employment. The general equilibrium analysis of the macro economy suggests that. over the analysed period. conflicting claims of various social classes on national output and conflicting rates of intersectoral accumulation warranted by competing producer groups have become important sources of disequilibria in the domestic economy; and that the distributional conflict among socio-economic classes had a direct impact on the formation of price movements.

Cultural Consequences of Monetary Interventions

2016 ◽  
Vol 22 (1) ◽  
Author(s):  
Jörg Guido Hülsmann
Keyword(s):  
Twentieth Century ◽  
Money Supply ◽  
Monetary Theory ◽  
Credit Expansion ◽  
Demand For Money ◽  
Cultural Implications

AbstractHayek and Keynes are usually perceived as antipodes in one of the grand macroeconomic debates of the twentieth century. But they also agreed on some basic issues of monetary theory, most notably on the harmful character of money hoarding and the desirability of a flexible money supply to offset or neutralise changes in the demand for money. In our paper we highlight some of the cultural implications of a permanent expansion of the money supply. We will focus on the specific case of credit expansion (

scholarly journals PROMULGATION OF THE MACROPRUDENTIAL REGULATION AND THE GUIDELINES FOR THE NBU MACROPRUDENTIAL POLICY

2018 ◽  
pp. 187-208 ◽  
Author(s):  
Victor Kozyuk
Keyword(s):  
Capital Flows ◽  
Commodity Prices ◽  
Macroprudential Policy ◽  
Credit Expansion ◽  
Price Inflation ◽  
Macroprudential Regulation ◽  
National Bank ◽  
Sectoral Policy ◽  
Potential Efficiency ◽  
Specific Profile

Post-crisis spread of macroprudential regulation requires some generalizations and identification of the ways of adapting it to Ukraine. Current consensus about taxonomy and functionality of macroprudential toolkit is corresponded with empirical findings of potential efficiency of such instruments to restrain credit and assets price inflation. At the same time, macroprudential policy may be vulnerable to possibilities of large borrowing abroad and credit activity leakage on unregulated segments of financial system. In the paper it is noted that commodity rich economies constitute a specific profile there macroprudential policy is meant to diminish vulnerability to commodity prices volatility. Macroprudential instruments may help to restrain abnormal credit expansion in non-tradable sectors and bound sectoral credit concentration, thus opening new opportunities for sectoral policy. It is proved that macroprudential policy guidelines for National Bank of Ukraine should be determined by the specifics of implementing macroprudential policy in the environment of capital flows being influenced by the commodity prices, as well as by specific institutional distortions caused by oligarchical banking.

scholarly journals Mnożnik kreacji pieniądza – pojęcie, ograniczenia i krytyka

Ekonomia ◽  
2019 ◽  
Vol 25 (1) ◽  
pp. 35-54
Author(s):  
Michał Kresak
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Money Supply ◽  
Commercial Banks ◽  
Economic Education ◽  
Quantitative Easing ◽  
Price Inflation ◽  
Money Multiplier ◽  
Modern Economy ◽  
Money Creation

Money multiplier — the concept, limitations and criticismThe article presents the money creation process in the modern economy, including the role of the central bank and commercial banks in this process. The concept of money multiplier is described and set in the context of Fed’s monetary policy since 1970s. Special attention is paid to the decrease of the M1 multiplier below the value of one, which accompanied the quantitative easing after the crisis arousal in 2008. Then, the main constraints are mentioned of commercial banks in the process of money creation impeding the full utilization of the multiplier potential: bank profitability and competitiveness, risk of bank runs, demand for currency, limitations concerning credit collaterals and those resulting from monetary policy, prudential regulations, and the behaviors of bank clients. The paper also reports on arguments critical toward the multiplier approach and suggests to perceive the money supply in the modern economy as an endogenously determined phenomenon: first, commercial banks grant as many credits thus creating money as they can owing to the market situation; then, they turn to the central bank to provide reserves. The latter provides reserves monetary base as the lender of last resort, aiming to control the interest rate, and not money quantity itself. The conclusions are significant for monetary policy and economic education, as the endogenous approach to money supply can explain why the quantitative easing, contrary to some concerns, did not automatically translate into a considerable increase of credit expansion and price inflation.

‘A Supreme Example of Whitehall “Tinkering” ’

2018 ◽  
pp. 124-152
Author(s):  
Stuart Aveyard ◽  
Paul Corthorn ◽  
Sean O’Connell
Keyword(s):  
Money Supply ◽  
Consumer Credit ◽  
Credit Cards ◽  
Consumer Expenditure ◽  
Credit Expansion ◽  
Consumer Durables ◽  
Effect Change ◽  
The Status ◽  
Target Consumer ◽  
General Thrust

Competition and Credit Control contributed to the abandonment of hire purchase terms control, but officials continued to search for another mechanism that could target consumer expenditure. Their quest became more pressing after 1973, as tremendous economic difficulties strengthened the desire to control the growth of the money supply. Competition and Credit Control failed to restrict credit expansion and was modified by the introduction of the ‘credit corset’. Hire purchase terms controls returned, alongside the voluntary system for other forms of consumer credit. The failure was dramatic enough for Labour’s front bench to advocate a return to ceilings on bank advances and the withdrawal of credit cards. In office, however, Labour accepted the status quo and relaxed some controls following pressure from the consumer durables sector. The general thrust of the experience in the 1970s led officials and ministers to lose faith in the capacity of the state to effect change.

scholarly journals Informal urban green space as anti-gentrification strategy?

2017 ◽  
Author(s):  
Christoph Rupprecht ◽  
Jason A. Byrne
Keyword(s):  
Political Ecology ◽  
Return On Investment ◽  
Green Space ◽  
Housing Price ◽  
Green Spaces ◽  
Urban Residents ◽  
Urban Greening ◽  
Vacant Lots ◽  
Price Inflation ◽  
Urban Greenspaces

Access to urban greenspace is vital for urban residents’ wellbeing. Yet investment in new parks can trigger housing price inflation through a process termed environmental gentrification. This can in turn potentially displace marginalized and vulnerable residents. In this chapter, we examine cases from Japan and Australia, investigating how informal urban greenspaces (IGS) (e.g. vacant lots, street or railway verges, brownfields, and power line corridors) could function as an ‘anti-gentrification’ urban greening strategy. Employing conceptual insights from political ecology and environmental justice, we use spatial and statistical analysis to test whether IGS is socio-spatially differentiated by (dis)advantage, and whether factors such as income and education affect residents’ perception and use of IGS. Results suggest that IGS holds considerable potential as a ‘just green enough’ intervention, because it does not appear to trigger gentrification as occurs with more ‘intentional’ green spaces. We argue that a key difference between intentional and informal greenspaces is the apparent empowerment of residents as co-creators, designers, managers and users of greenspace – not as passive consumers. Informal greenspaces may thus fulfill recreational needs while avoiding demands for a ‘return on investment’, a driver of environmental-gentrification. Insights from Japan suggest that planners and urban managers should identify and reduce IGS use barriers, provide better information (e.g. IGS maps), and work with residents to promote its use.

About current problems of development of the world financial system

2019 ◽  
Vol 39 (2) ◽  
pp. 172-178
Author(s):  
E. V. Zenkina ◽  
Y. S. Begma
Keyword(s):  
Money Supply ◽  
Foreign Exchange ◽  
World Economy ◽  
Foreign Exchange Market ◽  
Modern World ◽  
Exchange Market ◽  
Credit Expansion ◽  
Financial Bubble ◽  
The World ◽  
Classical Principle

Domination of the financial sphere in modern world economy is caused first of all by issue of credit monetary requirements. Such issue exceeding the volume of fiat deposits breaks a ratio between money supply and cost of the consumed goods. The arising imbalanceis stimulated also with growth of a share of virtual products for which the classical principle of pricing on the basis of expenses of factors of production is initially broken. The financial bubble grows and remains firm so far the trust to the world foreign exchange market remains. But credit expansion cannot be infinite.

scholarly journals DO HIGHER HOUSE PRICES INDICATE HIGHER SAFETY? PRICE VOLATILITY RISK IN MAJOR CITIES IN TAIWAN

2020 ◽  
Vol 24 (3) ◽  
pp. 165-181
Author(s):  
Fang-Ni Chu ◽  
I-Chun Tsai
Keyword(s):  
Housing Market ◽  
House Prices ◽  
Emerging Market ◽  
Housing Prices ◽  
Housing Price ◽  
Housing Markets ◽  
Price Volatility ◽  
Price Inflation ◽  
Volatility Risk ◽  
Price Bubbles

This study investigates the housing market in Taiwan, an emerging market with relatively severe housing price inflation. Using data from the first quarter of 1991 to the second quarter of 2017 for four cities in Taiwan, this study compares the risk transmission and sources of their housing prices. The results reveal that Taipei−Taiwan’s main financial hub−has the highest house prices among the four cities but maintains the lowest risk. Thus, in terms of price volatility risk, Taipei has the safest housing market among the studied cities. Other studies have discussed the potential housing price bubbles in regions with high housing prices but have been unable to explain the continual overheating of the housing markets. The findings of this study reveal that despite having the highest housing prices and the greatest potential bubble, the Taipei housing market has the lowest fluctuation risk, making it the safest market in terms of housing investment. The results of this study imply that Taiwan’s economic development is excessively concentrated in Taipei, causing people to bear low returns and high risk when purchasing real estate in other areas, in turn increasing the continual imbalance between regional housing markets.

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