The Role of Interest Rates and Bank Credit in the Economies of the British Dominions

1939 ◽  
Vol 49 (194) ◽  
pp. 222
Author(s):  
A. F. W. Plumptre
Keyword(s):  
Interest Rates ◽  
Bank Credit

Sukuk and monetary policy transmission in Indonesia: the role of asset price and exchange rate channels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suriani Suriani ◽  
M. Shabri Abd. Majid ◽  
Raja Masbar ◽  
Nazaruddin A. Wahid ◽  
Abdul Ghafar Ismail
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rates ◽  
Asset Price ◽  
Transmission Mechanism ◽  
Monetary Policy Transmission ◽  
Content Type ◽  
Policy Transmission ◽  
Monetary Policy Transmission Mechanism

Purpose The purpose of this study is to empirically analyze the role of sukuk in the monetary policy transmission mechanism through the asset price and exchange rate channels in the Indonesian economy. Design/methodology/approach Using the monthly data from January 2003 to November 2017, this study uses a multivariate vector error correction model causality framework. To examine the role of sukuk in the monetary policy transmission mechanism through the asset price channel, this study uses the variables of consumption, inflation, interest rates, economic growth and the composite stock price index. Meanwhile, to examine the role of sukuk in the monetary policy transmission mechanism through the exchange rate channel, this study used variables of inflation, interest rates, economic growth, foreign investment and exchange rate. Findings This study documented that sukuk has no causal relationship with inflation through asset price and exchange rate channels. Nevertheless, sukuk has a bidirectional causal relationship with economic growth through asset price and exchange rate channels. Sukuk is also documented to have a causal relationship with monetary policy variables of interest rate and stock prices through asset price and exchange rate channels. Finally, a unidirectional causality is recorded running from the exchange rate to sukuk in the exchange rate channel. Research limitations/implications The finding of independence of the sukuk market from interest rates provides evidence that the trading of the sukuk in Indonesia has been in harmony with the Islamic tenets. Practical implications The relevant Indonesian authorities need to enhance both domestic and global sukuk markets as part of efforts to promote the sustainability of Islamic capital market development in Indonesia. Originality/value To the best of the authors’ knowledge, this study is among the first attempts to empirically investigate the role of sukuk in monetary policy transmission through asset price and exchange rate channels in the context of the Indonesian economy.

The roundabout from interest rates to commodity prices in China: The role of money flow

2019 ◽  
Vol 61 ◽  
pp. 627-642
Author(s):  
Zesheng Sun ◽  
Yaoqing Wang ◽  
Xu Zhou ◽  
Lunan Yang
Keyword(s):  
Interest Rates ◽  
Commodity Prices ◽  
Money Flow

scholarly journals Analisis Peran Negara Di Bidang Ekonomi Dalam Prespektif Sistem Kapitalisme, Sosialisme, Dan Ekonomi Islam

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Muhammad Kambali
Keyword(s):  
Interest Rates ◽  
Conceptual Framework ◽  
Economic System ◽  
Economic Crisis ◽  
The State ◽  
Planning System ◽  
Role Of The State ◽  
The World ◽  
Low Interest Rates

The economic crisis that convolved the world economy a few years ago is the result of a series of government policies in the economic field. Starting from the Subprime Mortgage in America, the crisis eventually spreads across all sectors of the economy. As analysts say that the explosion of the current economic crisis is caused by the trend of low interest rates that are applied by the Fed. The trend of low interest rates will give rise to expectation of market to future economic situation. It is characterized by the overflow of capital expansion in all sectors, especially in property sector. Today, along with the growing mobility of capital from one country to another as part of unavoidable economic liberalization, mobility of capital, on the one hand, has spawned some of the imbalances in the life of a State. The powerlessness can not be separated from economic ideology and system on state role in the economy. Capitalism with its laissez faire brings the concept of state minimal role in the economy. In the empirical facts, it is broken by the crisis situation in 1930 and today's financial crisis. Socialism tends to carry the central role of the State in the economy through the centralistic planning system. The fall of the Soviet Union in the 1980s brought the world to a choice whether reconstructing capitalism or socialism as Fukuyama and Gidden said. On the other hand, as the new system, the economic system of Islam brings the concept of the role of the State in the economy on the basis of universal values of Islam, such as justice in the economy which is reflected in the mechanism of the prohibition of riba (usury), just income distribution and redistribution of income through zakat and social security. This article is an exposure of the State's role in the economy which is studied through the perspective of today’s economic system. The systems are capitalism, socialism, and Islam. The article not only explores conceptual framework, but also also contains an empirical framework mapping and how the conceptual framework is operated. At the end, from the two mapping (conceptual and empirical), author draws a reflection of how the State should play a role in the economic field. Keywords: Capitalism, Socialism, Islam, Economic Role of State

scholarly journals The role of investments in increasing economic efficiency in agricultural infrastructure

2020 ◽  
Vol 199 (8) ◽  
pp. 58-64
Author(s):  
Ramzi Abdullaev
Keyword(s):  
Interest Rates ◽  
Economic Efficiency ◽  
Systematic Approach ◽  
Mathematical Function ◽  
Short Term ◽  
Agricultural Economy ◽  
Agricultural Industry ◽  
Fixed Assets ◽  
The Republic

Abstract. The purpose of this study is to determine the role of investments in the development of agricultural infrastructure, including in the development of new approaches to the formation and use of investments as a factor in increasing the economic efficiency of the agricultural economy. The research method is comparative and analytical analysis, calculations using the “eviews” software package and a systematic approach. To determine the possibilities of creating the volume of investment products directed to fixed capital in agriculture, it is possible to construct a mathematical function of investment in agriculture, both in theoretical and practical terms. For example, in the form of the dependence of investments in fixed assets in agriculture on the volume of products produced, depending on the rate of return in agriculture, interest rates, etc. As a result of the study, the main directions of investment attempts to increase economic efficiency in agricultural industry. It was concluded that investments in agriculture in the Republic of Azerbaijan increased by 393.9 million manats in 2010 compared to 2003, and by 727 million manats in 2018. However, this growth is not at the desired level. In short-term and closed economic conditions, the multiplicative efficiency can be higher. The scientific novelty of the study consists in clarifying the essence and role of investment as an economic category based on its definition in both a narrow and a broad sense, as well as in identifying trends and patterns in the formation and use of investments in the agricultural economy.

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