Risk Aversion and Monetary Policy in a Global Context

2013 ◽  
Author(s):  
Juan M. Nave ◽  
Javier Ruiz
Keyword(s):  
Monetary Policy ◽  
Risk Aversion ◽  
Global Context

Risk aversion and monetary policy in a global context

2015 ◽  
Vol 20 ◽  
pp. 14-35 ◽  
Author(s):  
Juan M. Nave ◽  
Javier Ruiz
Keyword(s):  
Monetary Policy ◽  
Risk Aversion ◽  
Global Context

scholarly journals MODELLING HOUSING SUPPLY AND MONETARY POLICY WITHIN THE CONTEXT OF GLOBAL ECONOMIC TURBULENCE

2013 ◽  
Vol 17 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Junxiao Liu ◽  
Kerry London
Keyword(s):  
Monetary Policy ◽  
Housing Stock ◽  
Housing Demand ◽  
Housing Supply ◽  
Policy Makers ◽  
Vector Error Correction ◽  
Global Context ◽  
Dummy Variable ◽  
Vector Error ◽  
Economic Climate

Housing supply is an essential component of the property sector. Compared with an increasingly strong housing demand, the growth rates of total housing stock in Australia have exhibited a downward trend since the end of the 1990s. Over the same period, the significant adjustments in the Australian monetary policy were being implemented under a turbulent global economic climate. This research aims to identify the relationship between housing supply and monetary policy within the context of global economic turbulence by a vector error correction model with a dummy variable. The empirical evidence indicates that the monetary policy changes and global economic turmoil can significantly affect the supply side of the housing sector in Australia. The models developed in this study assist policy makers in estimating the political impacts in the global context.

scholarly journals Bank risk aversion and the risk-taking channel of monetary policy in the euro area

2017 ◽  
Vol 64 (5) ◽  
pp. 607-621
Author(s):  
Silvo Dajcman
Keyword(s):  
Monetary Policy ◽  
Risk Aversion ◽  
Euro Area ◽  
Risk Taking ◽  
Academic Research ◽  
Bank Lending ◽  
Bank Risk ◽  
Econometric Methodology ◽  
Survey Responses ◽  
Panel Vector Autoregression

The financial crisis has provoked economic policy interest and academic research on the functioning and empirical verification of the risktaking channel of monetary policy. The results of this paper demonstrate how the European Central Bank?s Bank lending survey responses can be used to construct a ?pure? risk aversion indicator of banks? business lending. Using panel vector autoregression econometric methodology, we find evidence that the monetary policy affects the ?pure? risk aversion of banks and later affects business loans and inflation in the euro area. The results suggest that the risktaking channel in the euro area is operational.

EuroTragedy

2018 ◽  
Author(s):  
Ashoka Mody
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Growth Potential ◽  
Single Currency ◽  
Italian Economy ◽  
Member States ◽  
Global Context ◽  
Institutional Cooperation ◽  
Open Trade

In May 1950, five years after the second of two catastrophic wars, European nations began building a magnificent structure of institutional cooperation and open trade borders to secure peace and prosperity. Then, in 1969, they took an astonishingly ill-advised leap towards a single currency—requiring a single monetary policy for vastly divergent economies. This was economic folly, critics untiringly warned. Worse, it carried the seeds of political division. Europe’s leaders went forward unheeding, and in January 1999, the tragedy of the euro began. This vivid and compelling chronicle describes how the euro improbably emerged through a narrow historical window as a flawed compromise wrapped in a false pro-European rhetoric of peace and unity. The book then situates the tragedy in a fast-paced global context and guides the reader through forced—and unforced—errors eurozone authorities committed during their long financial crisis. The euro unfolded as both economic and political tragedy. It weakened the growth potential of member states, which made financially vulnerable Europeans more anxious. It deepened the sense of unfairness and widened the division between nations. Now, the burden falls upon younger Europeans, a generation with a discouragingly bleak future. A compassionate view of European possibilities, EuroTragedy makes clear that the euro’s structural flaws will continue to haunt—especially along cracks in the Italian economy. Instead of centralizing authority to prop up an ossified pro-Europeanist model, it is time to loosen ties that bind too tightly so that a liberal order can once more flourish.

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