Money Supply and Demand: A Cobweb?

1967 ◽  
Vol 8 (1) ◽  
pp. 1 ◽  
Author(s):  
Paul E. Smith
Keyword(s):  
Money Supply ◽  
Supply And Demand

Are capital inflows in the CR inflationary?

1996 ◽  
Vol 5 (1) ◽  
Author(s):  
Tomáš Dvořák
Keyword(s):  
Czech Republic ◽  
Money Supply ◽  
Money Demand ◽  
Empirical Investigation ◽  
Demand Function ◽  
Supply And Demand ◽  
Capital Inflows ◽  
Supply Function ◽  
The Czech Republic ◽  
Net Foreign Assets

It is evident that the volume of capital inflows in the Czech Republic has had seriously monetary consequences. As shown in the section 2 net foreign assets accounted for most of the growth in the money supply in the Czech Republic during 1993 and 1994. Inflationary effects of capital inflows depend on whether capital inflows are driven by the money demand or by the money supply. The inflows driven by a rightward shift in the money demand function are not likely to result in inflation, while a shift in the money, supply function, caused perhaps by institutional change and greater availability of foreign funds, is likely to put pressure on prices. Empirical investigation of the supply and demand effects attempted to confirm the existence of the supply of money supply function in the Czech Republic. The application of appropriate econometric analysis in the turbulent period of 1992 - 1994 was somewhat problematic.

MONETARY REGIMES, MONEY SUPPLY, AND THE USA BUSINESS CYCLE SINCE 1959: IMPLICATIONS FOR MONETARY POLICY TODAY

2021 ◽  
pp. 1-27
Author(s):  
Hylton Hollander ◽  
Lars Christensen
Keyword(s):  
Interest Rate ◽  
Business Cycle ◽  
Money Supply ◽  
Supply And Demand ◽  
Balance Sheet ◽  
Actual Behavior ◽  
Interest Rate Policy ◽  
Monetary Economy ◽  
The Usa ◽  
The Business Cycle

The monetary authority’s choice of operating procedure has significant implications for the role of monetary aggregates and interest rate policy on the business cycle. Using a dynamic general equilibrium model, we show that the type of endogenous monetary regime, together with the interaction between money supply and demand, does well to capture the actual behavior of a monetary economy—the USA. The results suggest that the evolution toward a stricter interest rate-targeting regime renders central bank balance sheet expansions ineffective. In the context of the 2007–2009 Great Recession, a more flexible interest rate-targeting regime would have led to a significant monetary expansion and more rapid economic recovery in the USA.

scholarly journals The Management of Fiat Money or Gold Standard in the Financial System

2020 ◽  
Vol 3 (1) ◽  
pp. 57-76
Author(s):  
Lathif Lanafir Rifqi ◽  
Ana Zahrotun Nihayah
Keyword(s):  
Money Supply ◽  
Gold Standard ◽  
Supply And Demand ◽  
Banking System ◽  
Financial System ◽  
Production Costs ◽  
Standard System ◽  
System Reform ◽  
Fiat Money ◽  
Physical Form

In recent years, several prominent figures in Islamic Economics have called for a reform of the financial system from the concept of fiat money to return to the gold standard system (dinar dirham). The main reason for financial system reform is the perspective that fiat money is considered not resistant to inflation. However, the gold standard system is considered to have various weaknesses namely; physical size is relatively heavy, is not proven to be anti-inflation based on historical records, high production costs, inefficient utilization of production resources, only benefits certain groups, and is vulnerable to payment deficits. In theory, the problem of inflation is caused by the imbalance between supply and demand for money itself. If the money supply is greater than the demand, it will cause inflation. Conversely, if the money supply is less than the demand, then the economic activity will not be smooth. Therefore, this article believes that inflation is not due to the physical form of money (paper or gold ), but is caused by effective money supply and demand management. Therefore, government policies are needed including (a) deregulation of the banking system by nationalizing all banks, (b) playing an active role in intervening in the surge in prices of goods and services (c) promoting Ziswaf institutions.

Impact of Economic Regulation through Monetary Policy: Impact Analysis of Monetary Policy Tools on Economic Stability in Uzbekistan

2017 ◽  
Vol 3 (1) ◽  
pp. 65-69 ◽  
Author(s):  
Umidjon Duskobilov
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Money Supply ◽  
Impact Analysis ◽  
Supply And Demand ◽  
Economic Regulation ◽  
Policy Tools ◽  
Financial Flows ◽  
The Impact

Monetary policy is an integral part of economic development strategy in any economy due to its significant impact on economic sustainability. It has been an effective tool for regulating the economy through several tools. Nowadays the use of monetary policy tools to manage economic growth processes is a common practice in all market economies by balancing money supply and demand in domestic markets, increasing the benefits from foreign trade by exchange rate and overall financial flows by monitoring inflation rate trends. However, most effective tools are refinancing rate, mandatory reserve requirements and sterilization operations, which have direct linkages to financial flows, money supply, inflation, and exchange rate. In this paper, the author examined the impact of monetary policy tools on economic regulation in Uzbekistan by analyzing the relationship between monetary policy tools and economic growth. Empiric analysis revealed that monetary policy tools influenced positively on economic growth with a long-term relationship.

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