scholarly journals Discretionary monetary policy in the Calvo model

10.3982/qe855 ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 387-418 ◽  
Author(s):  
Willem Van Zandweghe ◽  
Alexander L. Wolman
Keyword(s):  
Monetary Policy ◽  
Discretionary Monetary Policy

scholarly journals Business cycle synchronization and monetary policy in Bosnia and Herzegovina

Bankarstvo ◽  
2021 ◽  
Vol 50 (2) ◽  
pp. 8-20
Author(s):  
Dragan Jović
Keyword(s):  
Monetary Policy ◽  
Business Cycle ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Great Part ◽  
Currency Board ◽  
The Business Cycle ◽  
Further Development ◽  
Discretionary Monetary Policy ◽  
New Instruments

By adopting the currency board at the end of the last century, and by pegging its exchange rate to the Euro, a quarter of a century ago, Bosnia and Herzegovina surrendered a great part of its monetary policy in the hand of European Central Bank in the hope that the synchronization of the business cycle will make foreign monetary policy completely suitable for Bosnia and Herzegovina. At the same time during these two decades, the Central Bank of Bosnia and Herzegovina has been developing and using reserve requirement and remuneration as discretionary instruments of monetary policy. The research shows that the domestic business cycle and the foreign one are relatively weakly synchronized compared to other countries' degree of synchronization, and by this findings current discretionary monetary policy and its further development and enrichment with new instruments is fully justified. Bosnia and Herzegovina must continue with developing its own discretionary monetary policy without relying on foreign monetary policy.

scholarly journals Monetary Policy after the Great Moderation

2020 ◽  
Vol 9 (3) ◽  
pp. 5-26
Author(s):  
Guillermo Peña
Keyword(s):  
Monetary Policy ◽  
Ad Hoc ◽  
Global Financial Crisis ◽  
Financial Economic ◽  
Great Moderation ◽  
Full Sample ◽  
Long Run ◽  
Causality Tests ◽  
The Global Financial Crisis ◽  
Discretionary Monetary Policy

AbstractThe interferences among some financial, economic and monetary variables are checked as an indicator of economic performance in the long run and for the monetary policy applied between the Great Moderation (GM) of 1987-2001 and the Global Financial Crisis of 2007-2009. For achieving this target, some Granger causality tests are applied to GDP growth, credit growth, and lending interest of 36 countries of the EU and the OECD for the full sample of 1987-2012 and the sub-sample of 2002-2007. Results corroborate the interferences among these variables for the discretionary monetary policy applied immediately after the GM, within the “Ad Hoc Era” or “lax period”, and independence when monetary policy was correctly applied and rules-based.

scholarly journals DOES THE PROCYCLICALITY OF CAPITAL REQUIREMENTS AFFECT FINANCIAL STABILITY IN CEMAC?

2020 ◽  
Vol 8 (7) ◽  
pp. 17-37
Author(s):  
Djimoudjiel Djekonbé ◽  
Ningaye Paul ◽  
Nafé Daba
Keyword(s):  
Monetary Policy ◽  
Financial Stability ◽  
Policy Instruments ◽  
Factorization Method ◽  
Capital Requirements ◽  
Panel Var ◽  
Regulatory Capital ◽  
Short Term ◽  
Discretionary Monetary Policy

The objective of this article is to analyze the effects of procyclical variations of the capital requirements for risk coverage on financial stability in the CEMAC[1]. In order to achieve this objective, we have specified and estimated a panel VAR model using the structural factorization method on quarterly Central Bank data over the period 2006-2017. Firstly, the results show that procyclical capital adjustments in the CEMAC region lead to short-term financial instability through the contraction of credit to the private sector. Secondly, despite the low level of financial development, the effects maintained by the adjustment of monetary policy instruments in the short term remain significant on price stability. Finally, in the long term, the procyclicality of regulatory capital makes it possible to revive economic activity and guarantee financial stability. These results lead us to recommend the adoption of a more discretionary monetary policy so as to make more procyclical the capital requirement.     [1] Economic Community of Central African States comprising Cameroon, Central African Republic, Chad, Congo, Gabon and Equatorial Guinea.

Sign in / Sign up

Export Citation Format

Share Document