Money Supply

The foreign exchange rate fluctuations do create an
impact on stock returns, which has been
investigated for non-financial listed Pakistani firms. The real
effective exchange rate has been used as the true measure of foreign
exchange exposure. The modelled econometric equation includes;
firm size, firm liquidity, money supply and inflation as predictors
of stock returns. Twenty-five non-financial listed firms have been
evaluated for the study period 2004 to 2013, which signifies the
military regime era proceeded by peoples party rule in Pakistan.
Financial data analysis, including; ADF unit root and Johansen
Co-integration tests, have been applied to evaluate financial data,
which further led to correlation, descriptive stats and panel data
regression analysis. The results have suggested a very weak
relationship between stock returns and foreign exchange exposure.
Therefore, sample non-financial listed firms have not been foreign
exchange exposed; however, firm size, liquidity, money supply and
inflation rates have definitely created an impact on stock returns.

A specific risk of this period is liquidity risk arised from inexistence of adecquted management. A new risk arises from financial measures against the effects of economic worldwide crisis. These measures are dedicated to mitigate the crisis risks but, they may become a real challange for companies and individuals caused by new competence needed. As a conclusion, the topic of

We turn our attention to the role of money for determining nominal magnitudes. Using US data, we find that the aggregate “nominal output plus and stock market capitalisation” is closely related to the money stock, lending support to one of Milton Friedman’s key monetarist propositions. This finding should be particularly important for ECB monetary policy: an inflation-free euro plays a

This study examines the impact of mortgage credit on economic growth in Nigeria. The data used were collected from the Central Bank of Nigeria statistical bulletin for a period of 24years from 1992-2015. Mortgage credit was proxy by mortgage loans advance by a Primary mortgage institutions (PMIs) as well as other macroeconomic variables which include broad money supply (M2) and Inflation rate (infr) while economic growth was proxy by Gross Domestic Product (GDP). Unit root test was carried out using Augmented Dickey Fuller and Phillips Perron test and the findings showed that all variables were stationary at first difference. The error correction mechanism result showed that there exist a long run relationship among the variables therefore, we recommend that mortgage credit should be made available to the public and the CBN should ensure that inflation rate are kept as low as possible, because high inflation rate impedes the impact of credit on economic growth.

Monetary services in an economy is delivered by various financial assets like demand deposits, saving deposits, time deposits and others. Hence it is very important to define money supply of any economy and evaluate the trends for the same .RBI has defined money supply from time to time. Hence various prepositions of money supply are available. This paper will elaborate the available prepositions and will evaluate the trends for the same from 1964-65 to 2016-17. This paper will also study the growth rate of reserve money, broad money and narrow money for the same period of time. Correlation between various prepositions is also evaluated.

This paper investigates on the impacts of money supply, inflation rate and interest rate on economic growth of Bangladesh by using the time series data on past 36 years from the period of 1981 to 2016. In order to do so, Autoregressive Distributive Lag (ARDL) model along with the Error Correction Model (ECM) model are used. The empirical analysis shows that broad money supply, inflation rate, interest rate possesses a long-run association with economic growth. The broad money supply and economic growth exhibits a significant and positive relationship whereas a positive but insignificant relation is found between inflation rate and economic growth in the long run. In addition, interest rate negatively related with the economic growth in the long run because of the deterioration of investment in the economy. This study also concludes that no significant short-run association is found between the assigned variables. However, in case of short run, broad money supply and inflation rate have negative effects on economic growth with the exception of the interest rate. The short-run and long-run models of economic growth are free from serial correlation and are stable over the sample periods of Bangladesh found from the test of Cumulative sum of recursive residuals (CUSUM). Index Terms-Economic growth, money supply, inflation rate (CPI), interest rate, Autoregressive Distributive Lag (ARDL), Error Correction Model (ECM), Stability.

Povezujući štednju i investicije finansijski sistem doprinosi ubrzanom privrednom rastu a time i rastu životnog standarda, odnosno blagostanju svih ljudi. To je ujedno i osnovni razlog zašto je ovaj udžbenik prvenstveno posvećen finansijskom sistemu i njegovim pojavnim oblicima sa kojima se svakodnevno susrećemo.

Тук Професор Паскал Сален прилага австрийската икономическа теория за да представи и изтълкува различните стопански явления довели до тежката криза от 2007-2009. За него именно етатизмът подхрани кризата. След един ХХ-ти век белязан с войни и различни форми на тоталитаризъм, за щастие завършил със срутването на комунистическите режими, бе позволено да мислим, че светът ще се приобщи към капитализма изразен както в действия, така и в начин на мислене и вяра. Това не се случи. Държавният интервенционизъм се засили в повечето страни и капитализмът бе остро и тежко критикуван и атакуван. Именно в този контекст се разрази икономическата криза. И преобладаващото мнение с лекота обясни тази криза като една красноречива проява на нестабилната същност на капитализма както и на неговата неморалност.
Последствие на липсата на етика от страна на банкерите ли е кризата? Или ефект на едно алчно безразумие подстрекано да рискува прекомерно за да се сдобие с още повече бонуси? За Паскал Сален това е един прекалено семпъл анализ. А може би е продукт на едно прекалено дерегулиране? Грешка, твърди той. По-скоро на прекалено много регулации, погрешни икономически и парични политики ... и на недостъг на капитализъм. В последствие държавата би ли била отново решението, както твърдят подържниците на интервенционизма и регулациите отново на мода? Съвсем не е сигурно подчертава Сален. Това „възвръщане на държавата” застрашава съвсем да ни разори ... Ето как кризата и обичайните лицемерни интерпретации са видяни през погледа на един свободен ум.

The relationship between inflation and money growth has been tested for Brazil over the period 1991- 2012. Thereafter using the data on money growth and inflation for USA, for the same period, we test if the relationship is as strong for the developed economy. Our estimates suggest that a smoothened measure of money and quasi money growth, corrected for real-time estimates of trend velocity and potential output growth, has important leading indicator properties for switches in inflation. Thus money growth provides an important early warning indicator for risks to price stability. However the relationship does not prove to be so strong for developed economies (USA) as it is for developing countries (Brazil).

The Bank of England, which has been independent since 1997, possesses the role of policing the UK’s money supply; usually done through their monetary policy. Money supply is the amount of money in circulation at any time, though the quantity isn’t always distinct; this could be down to the fact that money always fluctuates because it is subject to the instabilities of demand. Money supply can be broken down into two types of money; narrow and broad (Ken Heather, 2004). Narrow money (M₀/M₁) can be described as the notes and coins in transmission which includes the deposits received at commercial banks that are with the Bank of England. Whereas Broad money (M₃/M₄) is an amalgamation of narrow money and deposits with banks, which also includes foreign currency/deposits; this is because broad money is the total amount of money flowing in the economy. Money supply tends to be regulated as an attempt at maintaining constant price stability in the economy (Friedric S. Mishkin et al 2012). There are a number of ways in which the Bank of England could go about increasing the money supply in the economy which include open-market operations, refinancing rate and adjusting requirements.

Extract:
This work is describing the creation of monetary functions in a POW camp during the Second World War. It displays how ‘cigarette’ has become the means of exchange taking the role of money in a closed environment. One can notice that in such circles, the means respected by all participants can play the role of the means of exchange and storing the value functions. The study is prepared from an article using a diary of a POW.
Özet:
Bu çalişmada İkinci Dünya Savaşı sırasında bir kampta paranın görevlerinin nasıl ortaya çıktığı anlatılmaktadır. Böylesi bir kapalı ortamda, sigaranın nasıl bir ‘mübadele aracı’ haline geldiği açıklanmaktadır. Okurlar, bütün katılımcıların kabul ettiği ödeme vasıtalarının, değişim ve değer saklama aracı haline geldiğini izlemektedirler. Çalışma, bir kamptaki savaş esirinin notlarını kullanarak hazırlanan bir makaleden esinlenmiştir.

This paper examines the effect of inflation and money supply on output growth in Nepal over the period of 45 years from mid-July 1975 to 2019. Autoregressive distributed lag (ARDL) model is applied in this study in order to investigate the existence of the long-run and short-run relationships between the variables. Furthermore, this study uses natural logarithm of real GDP as a proxy for output growth, natural logarithm of broad money (M2) as a proxy for money supply and percentage change in Consumer Price Index (CPI) as a proxy for inflation rate. The results of ARDL bounds test reveal that inflation and money supply are cointegrated with economic growth over the study period. In addition, money supply in Nepal leads to output growth in the long-run as well as short-run, however, inflation negatively effects output growth both in the long-run and short-run. Based on these results, it can be concluded that money supply in Nepal can stimulate output growth, whereas inflation can be detrimental to economic growth. Thus, government should plan monetary policy to maintain a tolerable and lower rate of inflation, so as to boost the economy of the country.

The present study builds upon the seminal work of Engel and West [2005, Journal of Political Economy 113, 485-517] and in particular on the relationship between exchange rates and fundamentals. The paper discusses the well-known puzzle that fundamental variables such as money supplies, interest rates, outputs etc. provide help in predicting changes in floating exchange rates. It also tests the

This study aims to better understand the role of centralized and decentralized ledgers in the money supply process. The aim is to highlight the strengths, weaknesses, opportunities, and threats of these tools in the context of finance and banking. A thorough investigation of the prior literature was carried out using sources extracted from various academic databases. A SWOT analysis based on an integrative literature review methodology was conducted to synthesize various research contributions and analyze relevant information related to centralized and decentralized ledgers. The findings reveal that centralized ledgers are still critical in the record-keeping of financial transactions, despite the strengths and opportunities of decentralized ledgers outweighing those of centralized ledgers. This study helps to increase the understanding of financial and banking sector managers concerning the importance of decentralized ledgers in delivering more value to customers.

How can a particular allocation and prices be implemented? Under what conditions does a policy deliver a unique competitive equilibrium? How many degrees of freedom there are in the determination of the policy variables, or how many are the instruments of policy? In this paper we analyze a standard dynamic general equilibrium monetary model and determine the conditions on fiscal and monetary policy under which there is single equilibrium. We first obtain that in general, when taxes are chosen in order to satisfy the government budget constraint for all prices and quantities, policy must include exogenous rules for both money supply and interest rates in order for there to be a single equilibrium. However, there are particular interest rate feedback rules, or money supply rules, that guarantee a unique equilibrium. We consider alternative fiscal policy rules and extend the analysis to environments with sticky prices. We obtain similar results for particular restrictions on the settin...

This research examines the impact of crude oil price and money supply on Malaysian stock price. In this research, multiple regression technique is applied using monthly data from January 2009 to December 2013 of Brent crude oil price obtained from Federal Reserve Economic Data (FRED) Database, money supply acquired from the Monthly Statistical Bulletin published by Bank Negara Malaysia and FTSE Kuala Lumpur Composite Index (FBM KLCI) sourced from Wall Street Journal. The empirical findings of this research exhibit the evidence of positive influence of crude oil price and money supply on Malaysian stock price.

We propose an improved version of fractional reserve banking and thus put an end to commercial bank's role as creator of money in the economy. In the new method, this duty is entrusted with central banks and thus ensures greater financial stability. It has sound structure and is non-inflationary by nature. Above all, it's a sustainable proposition with greater social and economic benefits for the society. We also propose an essence market concept. JEL CODES: E50, E51, E58, G01, G21, G23, G28,

This study, using currency demand model, finds Australia’s underground economy to be around 2 to 3 per cent of gross domestic product. We extend the related literature (see, inter alia, Bajada, 1999 and Breusch, 2005) in three novel ways. First, we use Austrian levels of taxes and welfare payments as the minimum levels of taxes and welfare payments. Secondly, we