The Currency Composition Channel of Monetary Policy and the Role of Macroprudential Regulation

Previous authors have argued that Roman coinage was used as an instrument of financial control rather than simply as a means for the state to make payments, without assessing the accounting implications. The article reviews the literary and epigraphic evidence of the public expenditure accounts surrounding the Roman monetary system in the first century AD. This area has been neglected by accounting historians. Although the scope of the accounts supports the proposition that they were used for financial control, the impetus for keeping those accounts originally came from the emperor's public expenditure commitments. This suggests that financial control may have been encouraged by the financial planning that arose out of the exigencies of funding public expenditure. In this way these two aspects of monetary policy can be reconciled.

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On the Limits of Macroprudential Policy

The B E Journal of Macroeconomics ◽

10.1515/bejm-2018-0189 ◽

2020 ◽

Vol 0 (0) ◽

Author(s):

Marcin Kolasa

Keyword(s):

Monetary Policy ◽

Policy Instruments ◽

New Keynesian ◽

Output Volatility ◽

Macroprudential Policy ◽

Collateral Constraints ◽

Keynesian Model ◽

Additional Stabilization ◽

The Interest Rate

AbstractThis paper studies how macroprudential policy tools applied to the housing market can complement the interest rate-based monetary policy in achieving one additional stabilization objective, defined as keeping either economic activity or credit at some exogenous (and possibly time-varying) levels. We show analytically in a canonical New Keynesian model with housing and collateral constraints that using the loan-to-value (LTV) ratio, tax on credit or tax on property as additional policy instruments does not resolve the inflation-output volatility tradeoff. Perfect targeting of inflation and credit with monetary and macroprudential policy is possible only if the role of housing debt in the economy is sufficiently small. The identified limits to the considered policies are related to their predominantly intertemporal impact on decisions made by financially constrained agents, making them poor complements to monetary policy, which also operates at an intertemporal margin. These limits can be overcome if macroprudential policy is instead designed such that it sufficiently redistributes income between savers and borrowers.

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French Firms and COVID-19: Do the Debt Status, Crisis Management System, and Monetary Policy Play a Role?

Jahrbücher für Nationalökonomie und Statistik ◽

10.1515/jbnst-2020-0052 ◽

2021 ◽

Vol 0 (0) ◽

Author(s):

Mina Sami

Keyword(s):

Monetary Policy ◽

Stock Returns ◽

Crisis Management ◽

Management System ◽

Daily Growth ◽

Listed Firms ◽

Study Results ◽

Major Outbreak

Abstract This study has two main objectives: first, it assesses the effect of outbreak pandemic diseases on the French firms’ stock returns by considering the sector of activity as the main center of analysis. Second, it investigates the role of the crisis management system, firm debt strategy, and monetary policy in dealing with the adverse shocks of the major outbreak of the COVID-19. The study results can be summarized as follows: (1) the daily growth in COVID-19 cases and deaths are associated with lower stock returns of the listed firms, especially for the firms operating in the energy, industrial and health care sectors. In contrast, telecommunication and consumer sectors are not significantly affected. (2) The pandemic’s adverse effect is much more tolerant with the French firms with an efficient crisis management system and low long-term debt commitments than the firms that do not have such a system and engaged with long term debts. (3) Euribor rates and monetary policy are still playing an essential role during the pandemic period.

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Money Decentralization under Direct Democracy Procedures. The Case of Classical Athens

Journal of Risk and Financial Management ◽

10.3390/jrfm14010030 ◽

2021 ◽

Vol 14 (1) ◽

pp. 30

Author(s):

Emmanouil-Marios L. Economou ◽

Nicholas C. Kyriazis ◽

Nikolaos A. Kyriazis

Keyword(s):

Monetary Policy ◽

Central Bank ◽

Direct Democracy ◽

Hellenistic Period ◽

International Currency ◽

Monetary System ◽

Mediterranean World ◽

The Stability ◽

City State

By analyzing the case of Athens during the Classical period (508-323 BCE) the main thesis of this paper is that under direct democracy procedures and the related institutional setup, a monetary system without a Central Bank may function relatively well. We focus on the following issues: (i) Τhe procedures of currency issuing in the Athenian city-state, (ii) why the Athenian drachma become the leading international currency in the Mediterranean world (iii) how and towards which targets monetary policy without a Central Bank was possible (iv) defining the targets of monetary policy and the mechanisms for its implementation (v) the role of money in the economy (vi) the issue of deficit spending (vii) the reasons of the replacement of the Athenian drachma as a leading currency by others from the Hellenistic period onwards (viii) the correlation of our findings regarding the decentralized character of monetary policy in Classical Athens to today’s realities, such as the issue of cryptocurrencies. Our analysis shows that monetary policy without a Central Bank was possible, with its foremost aim being the stability of the currency (mainly, silver coins) in order to enhance trust in it and so, make it an international currency which could outcompete other currencies. Since there was no Central Bank like today, monetary policy decisions were taken by the popular assembly of citizens in combination with the market forces themselves.

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