scholarly journals Bayesian Graphical Model Application for Monetary Policy and Macroeconomic Performance in Nigeria

2019 ◽  
Author(s):  
David Oluseun Olayungbo
Keyword(s):  
Monetary Policy ◽  
Graphical Model ◽  
Macroeconomic Performance ◽  
Model Application

scholarly journals A Political Economy of Wellbeing/Wellness in Nigeria

2022 ◽  
Vol 13 (1) ◽  
pp. 1
Author(s):  
Anselm Adodo
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Inflation Rate ◽  
Policy Position ◽  
Macroeconomic Performance ◽  
The World Bank ◽  
Misery Index ◽  
High Level ◽  
Stiffening Effect

Since the turn of the new millennium, which was the period of clear comparison and computation of the misery index, Nigeria had always record low in the index for the report. Within the last three years, the misery index that was published has shown that Nigeria is the sixth (6th) most miserable country that one can reside. This measure of misery index was also substantiated by the recent report from the World Bank on the issue of poverty, inequality, and wellness. However, it seems to be an intensified interest in how Nigeria will overcome such an unpleasant pattern. In this research, the study examined how macroeconomic indices in enhancing people’s wellbeing—utilising economic growth, monetary policy position, and governance efficiency as, unemployment, interest rate, and inflation rate for macroeconomic performance indicators. The conclusions drawn suggest that economic growth, resulting in the advancement of wellbeing via allocative as well as distributive productivity is possible. Second, there is a stiffening effect on the wellbeing of contractionary monetary policy which increases interest rates and unemployment rates. The outcome extracted also shows that unnecessary domestic lending characteristics of the Nigerian economic system invalidate the wellbeing of the Nigerian people. Therefore, it proposed that the monetary authority reevaluate its present position on sustaining a high level of rediscount rate.   Received: 17 November 2021 / Accepted: 30 December 2021 / Published: 5 January 2022

scholarly journals Should Monetary Policy Respond To Asset Price Bubbles? Revisiting the Debate

2008 ◽  
Vol 206 ◽  
pp. 25-34 ◽  
Author(s):  
Sushil Wadhwani
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Asset Prices ◽  
Asset Price ◽  
Financial System ◽  
Central Banks ◽  
Macroeconomic Performance ◽  
Asset Price Bubbles ◽  
Price Bubbles ◽  
Inflation Forecasts

Recent events have highlighted the importance of asset prices to central bank decisions. We argue that, in response to asset price bubbles, central banks should ‘lean against the wind’ (LATW hereafter). Even if the bubbles themselves are not significantly affected by LATW, macroeconomic performance can be improved if monetary policy reacts to asset price misalignments over and above the reaction to fixed horizon inflation forecasts. In addition, it might reduce the probability of bubbles arising at all. This article restates the case for LATW, and reviews the debate. In particular I respond to various criticisms that have been made against LATW and briefly consider alternative policies designed to make the financial system less cyclical.

Swings and the Rules-Discretion Balance

2013 ◽  
Author(s):  
John B. Taylor
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
The Other ◽  
Macroeconomic Performance ◽  
Fiscal Stimulus ◽  
Policy Rules ◽  
The Past ◽  
Simple Rules ◽  
Economic Policymaking

This chapter examines two major swings in the balance between rules and the discretion of policymakers in U.S. economic policymaking in the past four decades: one in favor of rules and the other in favor of discretion. Evidence of the swing away from discretion is seen in actual fiscal policy and in the wide consensus among economists against the use of discretionary countercyclical fiscal policy in the 1980s and 1990s. The swing back toward discretion is found in the recent large discretionary fiscal stimulus packages and in deviations of monetary policy from the simple rules that described policy well in the 1980s and 1990s. Before elucidating the causes and effects of these swings, the chapter considers the economic and political rationale for policy rules. It suggests that the swing toward rules improved macroeconomic performance while the swing back toward discretion worsened it.

scholarly journals Taylor Rule and the Macroeconomic Performance in Pakistan

2010 ◽  
Vol 49 (1) ◽  
pp. 37-56 ◽  
Author(s):  
Wasim Shahid Malik ◽  
Ather Maqsood Ahmed
Keyword(s):  
Monetary Policy ◽  
Taylor Rule ◽  
Jel Classification ◽  
Macroeconomic Performance ◽  
Policy Strategy ◽  
Simple Instrument ◽  
Extreme Deviation ◽  
Parameter Values ◽  
Actual Policy ◽  
Counterfactual Simulation

A near-consensus position in modern macroeconomics is that policy rules have greater advantage over discretion in improving economic performance. For developing countries in particular, simple instrument rules appear to be feasible options as pre-requisites since more sophisticated targeting rules are generally lacking. Using Pakistan’s data, this study has attempted to estimate the Taylor rule and use it as monetary policy strategy to simulate the economy. Our results indicate that the State Bank of Pakistan (SBP) has not been following the Taylor rule. In fact, the actual policy has been an extreme deviation from it. On the other hand, counterfactual simulation confirms that macroeconomic performance could have been better in terms of stability of inflation and output, had the Taylor rule been adopted as monetary policy strategy. The study also establishes that further gains are possible if the parameter values of the rule are slightly modified. JEL classification: E47, E31, E52 Keywords: Taylor Rule, Macroeconomic Performance, Counterfactual Simulation

scholarly journals Inflation Targeting Monetary Policy and Macroeconomic Performance: The Case of Middle Income Countries

2019 ◽  
Vol 6 (5) ◽  
pp. 1
Author(s):  
Paul Owusu Takyi ◽  
Richard Fosu
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Instrumental Variable ◽  
Inflation Targeting ◽  
Macroeconomic Performance ◽  
Dynamic Panel ◽  
Difference In Differences ◽  
Middle Income ◽  
Macroeconomic Variables ◽  
Middle Income Countries

The number of studies investigating the effects of inflation targeting (IT) on inflation and macroeconomic variables has increased with the rising number of countries adopting IT. The empirical evidence has, however, failed to converge. In line with the need for more such studies, this paper uses a difference-in-differences (DID) model with dynamic panel fixed effect and instrumental variable (IV) techniques to estimate the effect of IT on inflation and economic growth for a sample of 40 middle-income countries. Generally, we find that the effects of IT on inflation is quantitatively large but statistically insignificant. We, however, find strong evidence that IT leads to higher growth in middle-income countries.

scholarly journals Better off without the euro? Evaluating monetary policy and macroeconomic performance for the u.k. and sweden

2016 ◽  
Vol 34 (2) ◽  
pp. 133
Author(s):  
Stefan Krause Montalbert
Keyword(s):  
Monetary Policy ◽  
Macroeconomic Performance

En este artículo comparo los resultados macroeconómicos, medidos por la volatilidad del PIB real y la inflación, para dos de los países que optaron por no entrar en la UEM: el Reino Unido y Suecia. En particular, estoy interesado en saber cuánto de los cambios en el desempeño macroeconómicos experimentados por el Reino Unido y Suecia después de 1999 se debe al aumento de la eficiencia en la conducción de la política monetaria independiente. El objetivo es analizar los cambios en la volatilidad macroeconómica que se podrían haber alcanzado si estos dos países hubieran adoptado el Euro a partir de enero de 1999.

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