scholarly journals Price convergence patterns across U.S. States

2019 ◽  
Vol 66 (2) ◽  
pp. 187-201
Author(s):  
Christina Christou ◽  
Juncal Cuñado ◽  
Rangan Gupta
Keyword(s):  
Monetary Policy ◽  
Market Integration ◽  
Price Convergence ◽  
State Variables ◽  
Policy Decisions ◽  
Paper Point ◽  
Convergence Clubs ◽  
Low Degree ◽  
Price Deflator ◽  
The U.S

This study examines the convergence patterns of prices across 50 U.S. states over the period 1960-2007, by applying the convergence algorithm developed by Peter C. B. Phillips and Donggyu Sul (2007). The empirical findings suggest the rejection of full convergence across the 50 U.S. states? prices, and the presence of 11 subgroups, or convergence clubs. The main implications of this paper point to the low degree of market integration across the U.S. states, the limitations of using a unique national price deflator to calculate real U.S. state variables, and the different effects that national monetary policy decisions will have on U.S. state prices.

How the U.S. monetary policy affects the corporate investment by emerging market companies

2021 ◽  
Vol 27 (7) ◽  
pp. 1513-1539
Author(s):  
Renat M. DASHKIN ◽  
Igor' A. KOKH
Keyword(s):  
Monetary Policy ◽  
Emerging Market ◽  
Policy Implications ◽  
Real Economy ◽  
Policy Decisions ◽  
Transmission Mechanisms ◽  
Policy Transmission ◽  
Policy Objectives ◽  
Capital Intensive ◽  
The U.S

Subject. The article addresses the transmission mechanisms of the U.S. monetary policy. Objectives. Our aim is to evaluate the transmission mechanisms of the U.S. monetary policy. Methods. The paper analyzes how the investment activities of 3,983 companies of the eight non-financial industries (mining, construction, manufacturing, transportation, information sector, trade, and agriculture) of 23 emerging economies respond to the monetary policy decisions for 2010–2017. Results. Investment activities of companies are influenced by monetary policy decisions through the transmission mechanism of financial markets. We found that American companies are more exposed to the monetary policy decisions than other emerging market companies, while Asian companies are indifferent to them. We confirm that capital-intensive and large companies, as well as debt-laden companies are more sensitive to monetary policy decisions. We also confirm that companies at different stages of their development react differently to the said decisions. The article can be valuable for the scientific community as part of the study of issues related to emerging market and monetary policy implications, for representatives of investment community, considering the potential investments in the assets of emerging countries, and for monetary authorities, responsible for the consistent monetary policy and its effects on the real economy, while constructing better models of monetary policy transmission. Conclusions. We show that companies of EMEA, Asia and America macro-regions and firms from different industries react differently to the monetary policy changes.

Model of the influence of Internet finance on monetary policy based on gibbs sampling and vector autoregression

2020 ◽  
pp. 1-11
Author(s):  
Hui Wang ◽  
Huang Shiwang
Keyword(s):  
Monetary Policy ◽  
Gibbs Sampling ◽  
Posterior Distribution ◽  
Estimation Method ◽  
Financial Supervision ◽  
Var Model ◽  
Model Parameters ◽  
State Variables ◽  
Frequency Data ◽  
Internet Finance

The various parts of the traditional financial supervision and management system can no longer meet the current needs, and further improvement is urgently needed. In this paper, the low-frequency data is regarded as the missing of the high-frequency data, and the mixed frequency VAR model is adopted. In order to overcome the problems caused by too many parameters of the VAR model, this paper adopts the Bayesian estimation method based on the Minnesota prior to obtain the posterior distribution of each parameter of the VAR model. Moreover, this paper uses methods based on Kalman filtering and Kalman smoothing to obtain the posterior distribution of latent state variables. Then, according to the posterior distribution of the VAR model parameters and the posterior distribution of the latent state variables, this paper uses the Gibbs sampling method to obtain the mixed Bayes vector autoregressive model and the estimation of the state variables. Finally, this article studies the influence of Internet finance on monetary policy with examples. The research results show that the method proposed in this article has a certain effect.

scholarly journals Causes of The Outbreak of the Eurozone Crises: The Role of the Usa and the European Central Bank Monetary Policy

e-Finanse ◽  
2015 ◽  
Vol 11 (2) ◽  
pp. 47-63
Author(s):  
Natalia Białek
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
European Central Bank ◽  
Institutional Design ◽  
Global Financial Crisis ◽  
European Central ◽  
Low Interest Rates ◽  
The Usa ◽  
The U.S

Abstract This paper argues that the loose monetary policy of two of the world’s most important financial institutions-the U.S. Federal Reserve Board and the European Central Bank-were ultimately responsible for the outburst of global financial crisis of 2008-09. Unusually low interest rates in 2001- 05 compelled investors to engage in high risk endeavors. It also encouraged some governments to finance excessive domestic consumption with foreign loans. Emerging financial bubbles burst first in mortgage markets in the U.S. and subsequently spread to other countries. The paper also reviews other causes of the crisis as discussed in literature. Some of them relate directly to weaknesses inherent in the institutional design of the European Monetary Union (EMU) while others are unique to members of the EMU. It is rather striking that recommended remedies tend not to take into account the policies of the European Central Bank.

Do conservative governments make a difference in monetary policy? A study of the U.S. and the U.K.

2003 ◽  
Vol 31 (3) ◽  
pp. 242-254 ◽  
Author(s):  
Attiat F. Ott ◽  
Anna Belova ◽  
Vladislav Dolgopolov
Keyword(s):  
Monetary Policy ◽  
The U.S

Limitation Riders and Congressional Influence over Bureaucratic Policy Decisions

2010 ◽  
Vol 104 (4) ◽  
pp. 766-782 ◽  
Author(s):  
JASON A. MACDONALD
Keyword(s):  
United States ◽  
Policy Making ◽  
The United States ◽  
Policy Outcomes ◽  
Policy Decisions ◽  
The U.S ◽  
Regulatory Actions

Limitation riders, which allow the U.S. Congress to forbid agencies from spending money for specific uses, enable congressional majorities to exert greater influence over bureaucratic policy decisions than is appreciated by research on policy making in the United States. I develop a theory of limitation riders, explaining why they lead to policy outcomes that are preferable to a majority of legislators compared to outcomes that would occur if this tool did not exist. I assess this perspective empirically by analyzing the volume of limitation riders reported in bills from 1993 to 2002 and all limitation riders forbidding regulatory actions from 1989 to 2009. In addition to supporting the conclusion that Congress possesses more leverage over agencies’ decisions than is currently appreciated, the findings have implications for advancing theories of delegation.

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