The Effectiveness of Trilemma Policy Choice in the Presence of Macroprudential Policies: Evidence From Emerging Economies

Juhro, Solikin M.; Prabheesh, K.P.; Lubis, Alexander

doi:10.1142/s0217590821410058

Cited by 8 publications

(5 citation statements)

References 56 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Our findings imply that monetary policy cannot stand alone in managing macroeconomic stability during periods of high uncertainty like the current pandemic. In this case, the integration of monetary and macroprudential policies needs to be strengthened in a policy mix strategy to support the effectiveness of monetary policy transmission and, at the same time, maintain macroeconomic stability (Warjiyo and Juhro, 2019;Juhro et al, 2021). In addition, as economic agents wait for precise information to respond to policy changes, credible communication from central banks is vital for effective monetary policy transmission.…”

Section: Discussionmentioning

confidence: 99%

Covid-19 Uncertainty and Monetary Policy Responses: Evidence From Emerging Market Economies

Prabheesh

Juhro

Harun

2022

BEMP

Self Cite

View full text Add to dashboard Cite

This paper examines the effectiveness of monetary policy transmission in emerging economies during the COVID-19 outbreak. Using data from 14 emerging economies severely affected by the pandemic and the autoregressive distributed lag approach to cointegration, the study examines the effectiveness of monetary policy in affecting output, inflation, and credit. The study finds that: (1) In most economies, the monetary policy transmission to inflation is weakened due to the uncertainty created by the COVID-19 pandemic; (2) in a few economies, the transmission is found to be effective in stabilizing credit and output; and (3) the outbreak of the COVID-19 pandemic induced economic agents to follow a “cautionary” or “wait and see” approach.

show abstract

Section: Discussionmentioning

confidence: 99%

Covid-19 Uncertainty and Monetary Policy Responses: Evidence From Emerging Market Economies

Prabheesh

Juhro

Harun

2022

BEMP

Self Cite

View full text Add to dashboard Cite

show abstract

“…Capital openness reduces both of inflation volatility and output volatility. Juhro et al (2021) investigated the effects of Trilemma on macroeconomic stability in a sample of 10 emerging countries in light of the macroprudential financial policies adopted in most countries after the global financial crisis. The sample countries are Brazil, China, Hungary, India, Indonesia, Malaysia, Poland, Russia, Thailand and Turkey.…”

Section: The Impact Of Trilemma On Macroeconomic Performancementioning

confidence: 99%

“Impossible Trinity” effects on Macroeconomic performance in Non-oil Arab Economies: Evidence from Egypt, Jordan, Lebanon, Morocco, and Tunisia

Ezzat¹

2023

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

View full text Add to dashboard Cite

Monetary policy autonomy, exchange rate stability and free capital mobility are critical macroeconomic goals for all countries. However, Mundel-Fleming's impossible trinity hypothesis states that the extreme cases for these three goals cannot be targeted simultaneously. Despite the multiplicity of literature focused on testing the validity of impossible trinity, few empirical studies focused on its impact on macroeconomic performance. Neither these empirical studies nor the theoretical framework agreed on the validity of impossible trinity or its impacts on macroeconomic performance, particularly in developing countries. This study tests mainly the impact of impossible trinity indices on macroeconomic performance. The study uses deductive approach applied on five Non-oil Arab Economies using panel macroeconomic data. Two models are estimated for the period 1977-2021 using system generalized method of moments. Results confirmed the dynamic nature of macroeconomic performance, the validity of impossible trinity in sample countries and the significance of impossible trinity on affecting macroeconomic performance. More specifically, output volatility and inflation rates decrease by having greater capital openness and greater exchange rates stability. Inflation rate only can be reduced by greater monetary autonomy. Supportive policies are proposed to effectively improve macroeconomic performance relying on impossible trinity.

show abstract

“…В продолжение этой темы S. Juhro и др. [22] отметили важность сочетания макропруденциальной и денежно-кредитной политики.…”

Section: обзор литературыunclassified

Effectiveness of Macroprudential Policy: Problems of Measurement and Evaluation

Господарчук

Zeleneva

2023

jour

View full text Add to dashboard Cite

The macroprudential policy of central banks plays a key role in ensuring financial stability not only at the level of individual states but also on the scale of the entire global economy. In this regard, adequate measurement of its effectiveness is an urgent task for national and supranational financial regulatory authorities. The present study is focused on solving this problem. The purpose of the study is to develop indicators and criteria for a comprehensive assessment of the effectiveness of countries’ macroprudential policies, allowing for a cross-country analysis of this effectiveness and identifying the best global practices in macroprudential regulation. The study is based on the consolidation of the market and institutional approaches to measuring financial stability, as well as on the use of normative methods and methods of comparative economic analysis. As a result of the study, new indicators for diagnosing the effectiveness of macroprudential policy have been developed. Criteria are proposed to determine the international positions of countries in terms of the level of general, market, and institutional effectiveness of the macroprudential policy. Testing of the developed indicators and criteria was carried out for 180 countries for the period 1998–2019. The developed indicators and criteria for the effectiveness of macroprudential policy differ from the existing ones in a comprehensive manner, since they take into account the stability of financial markets and financial systems at the same time. They are also more representative as they include a wider range of parameters taken into account in financial stability calculations.

show abstract

The Effectiveness of Trilemma Policy Choice in the Presence of Macroprudential Policies: Evidence From Emerging Economies

Cited by 8 publications

References 56 publications

Covid-19 Uncertainty and Monetary Policy Responses: Evidence From Emerging Market Economies

Covid-19 Uncertainty and Monetary Policy Responses: Evidence From Emerging Market Economies

“Impossible Trinity” effects on Macroeconomic performance in Non-oil Arab Economies: Evidence from Egypt, Jordan, Lebanon, Morocco, and Tunisia

Effectiveness of Macroprudential Policy: Problems of Measurement and Evaluation

Contact Info

Product

Resources

About