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This study aims to assess the impact of economic growth and inflation on unemployment in Somalia by testing the Phillips curve and Okun’s law hypothesis utilizing the autoregressive distributed lag (ARDL) model and time series data covering the period from 1991 to 2017. The empirical results reveal the existence of long-run cointegration among the variables. Moreover, a negative relationship is established between economic growth and unemployment both in the short run and long run, hence confirming the validity of Okun’s law hypothesis in Somalia. The impact of inflation on unemployment is inconsequential in the long run, although a strong negative association exists in the short run, thus supporting the presence of the Phillips curve hypothesis in Somalia in the short run. The study recommends that policymakers should enact policies that favor economic growth to mitigate unemployment and create a balance between the required level of inflation and unemployment in Somalia.

The purpose of this study is to investigate the effect of monetary policy on conventional and Islamic banks in Malaysia. This study deployed autoregressive distributed lag (ARDL) model due to its appropriateness for small sample. Bond test result indicates that there is long run relationship among Islamic bank loans and its determinant and also conventional bank and its determinant at 1% significance level. Nevertheless, result from this study illustrates that there is significant negative impact of interest rate on Islamic bank loans in short run and although it is not significant in the long run. It also illustrates presence of significant negative impact of interest rate on conventional bank loans in the short run while there is significant positive impact on conventional bank loans in the long run. The outcome from this study led several policy implications; Firstly, overnight policy rate designed to influence day to day activities of financial institutions is effective in performing its function as short term predictor. Secondly, since the result supported impact of interest rate on Islamic bank loans which make necessary for the central bank to set up monetary policy that suits both banks while interest free banks needs to improve their risk management tools.

The main aim of this investigation was to model the volatility of Somali shilling against US dollar by using monthly data covering from 1950 to 2010. Further to that, this finding has adopted both symmetric and asymmetric generalized autoregressive conditional heteroscedastic (GARCH) family models in order to capture volatility clustering and leverage effect as the most stylized facts of exchange rate returns. Result from ARCH indicates presence of conditional heteroscedasticity in the residual series of exchange rate. Symmetric GARCH(1,1) model shows presence of volatility clustering and persistent coefficients of <1 indicating that volatility is an explosive process. Results from asymmetric TCHARCH(1,1) and EGARCH(1,1) indicates presence of leverage effect in the series of exchange rate meaning positive news have large effect on volatility than bad news of same magnitude. This study has an important implication to investors and risk managers. Nevertheless, this study suggests monetary authority to print new currency and de-dollarize the economy in order to be able influence exchange rate volatility. The outcome from this finding also suggests that GARCH family models sufficiently capture the volatility of Somali shilling against US dollar.

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