Chronicle of the Liquidity Effect Foretold

2004 ◽  
Author(s):  
Munir A Jalil
Keyword(s):  
Liquidity Effect

scholarly journals MONETARY DISCRETION BY FISCAL MEANS: THE CASE OF BULGARIA

2019 ◽  
Vol 7 ◽  
Author(s):  
Preslav Dimitrov ◽  
Ivan Todorov ◽  
Stoyan Tanchev ◽  
Petar Yurukov
Keyword(s):  
Interest Rates ◽  
Balance Sheet ◽  
Liquidity Effect ◽  
Currency Board ◽  
Automatic Adjustment ◽  
Adjustment Mechanism ◽  
Study Results ◽  
National Bank ◽  
The Impact ◽  
Reserve Ratio

The specific design of the Bulgarian currency board arrangement (CBA), which provides an opportunity for the Bulgarian government to conduct discretionary monetary policy by changes in the fiscal reserve, was analyzed. The impact of government deposit fluctuations on the dynamics of reserve money and interbank interest rates was investigated. The hypotheses of an automatic adjustment mechanism and a liquidity effect under the Bulgarian currency board arrangement were tested. The methodology employed was a vector autoregression, which included the following variables: MB – monetary base; BP – the balance of payments; GD – government deposit on the balance sheet of the Issue Department of the Bulgarian National Bank; MRR – minimum required reserve ratio of commercial banks. The target variable was MB. Monthly data for the period of January 1998 - December 2018 were used. The study results did not provide evidence of a statistically significant impact of changes in government deposit on reserve money and interbank interest rates. The hypotheses for the existence of an automatic adjustment mechanism and a liquidity effect did not find an empirical confirmation.

scholarly journals The Liquidity Effect and Long-Run Neutrality

10.3386/w6608 ◽  
1998 ◽  
Author(s):  
Ben Bernanke ◽  
Ilian Mihov
Keyword(s):  
Liquidity Effect ◽  
Long Run

scholarly journals Intertemporal substitution and the liquidity effect in a sticky price model

2002 ◽  
Vol 46 (8) ◽  
pp. 1399-1421 ◽  
Author(s):  
Javier Andrés ◽  
J. David López-Salido ◽  
Javier Vallés
Keyword(s):  
Liquidity Effect ◽  
Price Model ◽  
Intertemporal Substitution
Sign in / Sign up

Export Citation Format

Share Document