Monetary Policy and Public Finances: Inflation Targets in a New Perspective

Beddies, Christian

doi:10.5089/9781451844368.001

Cited by 6 publications

(8 citation statements)

References 18 publications

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“…The panel Granger causality test indicates that there is bidirectional causality between LGDPC and LFDII in short run. Further, bidirectional causality was also found between LGDPC and LGCF (Bakare, 2011; Beddies, 1999; Chen, 2006; Perkins, Fedderke, & Luiz, 2006; Shahbaz & Rahman, 2012). The results demonstrate that unidirectional causality is running from LGDPC to LM3 (Model A) supporting demand following hypothesis which argues that when an economy grows, demand for financial services increases.…”

Section: Results and Interpretationmentioning

confidence: 96%

Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries

Rani¹,

Kumar

2018

Emerging Economy Studies

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The purpose of this article is to investigate the possible cointegration and direction of causality between foreign direct investment (FDI) inflow, trade openness, and economic growth in BRICS countries using panel data from 1993 to 2015. Besides these variables, money supply and domestic credit (DC) to private players are also added in the model to examine the impact of financial openness on economic growth. The Pedroni’s panel cointegration test is used to examine the existence of long-run relationship, and coefficients of cointegration are examined by fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS). Further panel Granger causality test is used to examine the direction of causality among the competing variables. The results of Pedroni’s panel cointegration test indicate that there exists a long-run relationship among the variables under considerations in BRICS countries. The coefficient of FMOLS and DOLS indicates that trade openness has a positive impact on economic growth in BRICS countries while FDI inflow has a negative impact in these nations. In addition, the results of panel Granger causality confirmed bidirectional causality between FDI inflow and economic growth in the short run. The study recommends that BRICS countries should liberalize trade openness as it strengthens the position of member countries in the world economy.

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Section: Results and Interpretationmentioning

confidence: 96%

Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries

Rani¹,

Kumar

2018

Emerging Economy Studies

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“…First, distortionary taxation is the only fiscal instrument impacting the aggregate supply with no effect on 4 The Rogoff (1985) model assumes complete information, deterministic policy preferences, a static economy and no interaction with other policy makers. Among recent contributions, we note Beetsma and Jensen (1998), Muscatelli (1998), Schaling et al (1998) -uncertain central bankers' preferences -Herrendorf andLockwood (1997) -stochastic inflation biases -Svensson (1997) -output persistence - Cukierman andLippi (1999, 2001), Guzzo and Velasco (1999), Lawler (2000) -explicit labour market institutions - Huang and Padilla (1995), Debrun and Wyplosz (1999), Debrun (2000), Levine and Pearlman (1998), Pina (1999), Beddies (1999), Catenaro and Tirelli (2000), Beetsma and Bovenberg (2001a), Dixit and Lambertini (2003) -the interaction with fiscal policy.…”

Section: Models Of Monetary and Fiscal Policy Interactionsmentioning

confidence: 91%

“…'Obviously, the degree of central bank independence plays a meaningful role only in the presence of differences of emphasis on alternative policy objectives between the political authorities and the CB' (Cukierman 1992, p. 350). The induced inefficiency of the policy mix is emphasized in different models by Nordhaus (1994), Huang and Padilla (1995), Debrun (2000), Levine and Pearlman (1998), Beddies (1999), Castellani (2001) and Dixit (2001), among others. 12 For detailed discussions of this issue, see Bovenberg (1997, 1998) or Beetsma and Debrun (2004).…”

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confidence: 99%

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Designing Macroeconomic Frameworks: A Positive Analysis of Monetary and Fiscal Delegation*

Castellani

Debrun

2005

Int Finance

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This paper proposes a simple model illustrating the potential benefits of approaching the design of a macroeconomic framework conducive to low inflation in both its monetary and fiscal dimensions rather than relying exclusively on the merits of central bank independence and other monetary commitment devices such as currency boards or dollarization. The reason is that monetary delegation alone merely 'relocates' the timeinconsistency problem stemming from the government's incentive to address structural output shortfall with a macroeconomic stimulus. This paper also provides a new argument explaining why fiscal deficit rules may be less effective than instrument-specific rules. Ã We benefited from insightful comments and suggestions by Roel Beetsma, Andrew Feltenstein, Robert Flood, the Editor (Benn Steil), Charles Wyplosz and seminar participants at the IMF. We are grateful to two anonymous referees for comments and suggestions that led to substantial improvements in many dimensions of the paper. Of course, the opinions expressed in this paper are those of the authors and do not necessarily reflect those of the International Monetary Fund (or IMF policies) nor the official position of the Inter-American Development Bank. We are also solely responsible for any remaining errors and omissions. r Blackwell Publishing Ltd. 2005, International Finance 8:1, 2005: pp. 87-117 Ã With centralized policy making, fiscal pre-commitment/discretion is irrelevant. ÃÃ If both monetary and fiscal authorities can pre-commit, then the game unravels to the CP regime. FD, fiscal discretion; FP, fiscal pre-commitment; FR, fiscal rules.

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“…According to Ncanywa and Makhenyane (2016), some studies have shown in the recent years that the role of capital formation economy among the developing countries is of great importance to economic growth (Ghura, and Hadji, 1996;Ghura, 1997;Beddies, 1999;Kumo, 2012;Ugochukwu, and Chinyere, 2013). It has been verified, that the increase in the economic growth, is associated to flow with an increase in capital formation in Nigeria (Ugochukwu, and Chinyere, 2013;Adegboyega, and Odusanya, 2014;Muneer et al, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Eastern Cape Gross Fixed Capital Formation and Its Impact on the South African Economic Performance

Yalezo¹,

Bokana²

2018

JEBS

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This study aimed at investigating the factors that determine gross fixed capital formation in the Eastern Cape province of South Africa using time series autoregressive distributive lags (ARDL) on a data covering 1996-2015. We are constraint with the time length of the data because the range of time falls within the period when South Africa got her independence and actually the reliability of most data for most economic activities began after independence. The analyses carried out in this study are basically from two study dimensions. Firstly, we investigated which factors determine the growth of Eastern Cape Gross fixed capital formation and the classification of all economic activity into primary, secondary and tertiary sectors enabled us to identify the significant role of tertiary sector among others in analyzing which factors determine Easter Cape gross fixed capital formation. Again, growth is enhanced through the following determinants: Catering and Accommodation (TF17) and not necessarily when Wholesale and retail trade is inclusive; Again, there is a better performance of the GFCF in the tertiary sector with Communication (TG19) than when Transport and storage are merged together, and finally, Business services (TH21) behaves better with tertiary sector than when it combines with Finance, Insurance and real estate. Hence, for policy implication, the growth of primary and secondary should be considered urgent and should be given ultimate policy consideration as it appears that these sections contribute very negligibly to the growth of Eastern Cape gross fixed capital formation.

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Monetary Policy and Public Finances: Inflation Targets in a New Perspective

Cited by 6 publications

References 18 publications

Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries

Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries

Designing Macroeconomic Frameworks: A Positive Analysis of Monetary and Fiscal Delegation*

Determinants of Eastern Cape Gross Fixed Capital Formation and Its Impact on the South African Economic Performance

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