Monetary theory and policy

This research work focused on the impact of fiscal and monetary policy on Nigeria"s economic growth between 1980 and 2016. In the study, variables such as government expenditure and taxation revenue were used to proxy fiscal policy while the broad money supply was employed as a proxy for monetary policy. The other variable employed as controlled variable is interest rate. The unit root test confirmed that all the variables were not stationary at levels but were stationary at first difference. Also, the Johansen cointegration test confirmed that a long run relationship exists between fiscal policy, monetary policy and economic growth in Nigeria. The empirical results reported using the ordinary least squares technique suggested that fiscal policy has positive and significant impact on economic growth, and monetary policy has positive impact on economic growth as well. We, therefore, conclude that both fiscal and monetary policies have positive and significant impact on Nigeria"s economic growth between 1980 and 2016. To this end, we recommend that the Federal Government of Nigeria should focus on using the fiscal policy instruments to stimulate the economy in the desired direction in order to sustain economic growth process. We also call on the Central Bank of Nigeria to consistently embark on appropriate and effective monetary policy to boost the economy. Furthermore, since interest rate is observed to negatively impact economic growth, efforts should be made as lowering the cost of borrowing in the commercial banks and other financial institutions in order to boost investment and increase economic growth in the country. I.

Commercial banks in Kenya have posted good financial performance as indicated by ROA and ROE. This coincides with a period of enormous diversification occasioned by global financial sector liberalization, allowing banks to venture into a range of businesses while maintaining the traditional intermediation business. Theory and empirical evidence is equivocal on the financial performance impact of diversification. Often, theory provides an isolated analysis of the diversification – performance relationship which limits their generalizations especially in the face of systemic financial risks and crisis. Using an ex post facto explanatory design we investigate whether bank diversification affects financial performance and whether this effect is moderated by solvency and credit risk based on panel data from 34 commercial banks in Kenya over nine firm years. The authors find that income and asset diversification negatively and significantly affect commercial bank ROA while geographical ...

Examining the effect of the financial performance of organizations has gained importance in the wholesale refinance literature; however, the study investigated determinants of financial performance of listed DMBs in Nigeria for ten years from 2011-2020. The study adopts the correlation design so that to correlate the relationship between variables. The population of this study comprises the Seventeen listed deposit money banks in Nigeria as at 31 December, 2020. A total of thirteen which represent seventy-seven percent of the banks were duly used as sample for the study. The audited annual reports were obtained from Nigerian stock exchange. The result provides evidence Bank size, Capital adequacy ratio and Income diversification have insignificant impact return on assets of the banks. In the determining the effects of moderating impact on firm age is that Capital adequacy ratio, Bank size, Income diversification has a statistically insignificant influence on the return on assets of ...

The study investigates the drivers of deforestation in Nigeria using annual time series data for the period 19902012. The data on all the variables were tested for unit root using KPSS unit root test. The results from KPSS units root test revealed that all the variables are stationary at level. And they are cointegrated as reported by the Engle granger test for cointegration. The result from fully modified ordinary least squares (FMOLS) indicates that wood fuel, economic growth, agricultural land and foreign direct investment have significant positive impacts on deforestation with urbanization been inversely related to deforestation in the long run. Government should give more emphasis on providing alternative means of cooking and lightening apart from fire woods, providing modern means of farming with crops that require small amount of land and lastly emphasis more on public enlightenment campaign on the dangers of deforestation and desertification.

This article finds that in an open, free market economy, with a privately accessible state mint and an official currency based on a metallic standard, supply or demand shocks leave prices stable both in the short run and in the long run, with the exception of when the currency is debased. The stabilization property of this kind of currency derives from the mechanism by which changes in commodity prices motivate the holders of the stock of currency to shift their demand for it such that its acquisition cost equates to its purchasing power in terms of goods and services. When a country is large relative to the international market for specie, maintenance of price stability may require adjustments in the seigniorage charge, whereas in countries with closed economies such adjustments are in general imperative. In addition, through seigniorage adjustments, the price level may even be held fixed irrespective of the magnitude and origin of shocks, the relative size of the country, and the ...

Szerte a világban valóságos válság várótermet rendeztek be maguknak a köz- gazdászok, ebben hosszasan elidőzve azt latolgatják, milyen előjeleket látnak, azokból milyen jövő következik, vajon lassulást vagy recessziót hoz, és mindez mikor köszönt be. Mások azt méricskélik, mennyire védettebb ma a világ egy globális recesszióval szemben, mint 2008-ban volt. Megint mások az „új normalitás” jellemzőit gyűjtögetik, és azon merengenek, milyen körülményekre kell a monetáris és a fiskális politikának felkészülnie. A szerkesztőség végzetes hibának tartaná, ha ebből a globális párbeszédből éppen a Külgazdaság maradna ki. Ezért arra kértük szerzőinket, osszák meg velünk s olvasóinkkal ezzel kapcsolatos gondolataikat, vágyaikat, félelmeiket és reményeiket! Természetesen bármelyik rész ki lehet ragadni az összefüggések láncolatából. Szándékaink szerint különös figyelmet fordítanánk a várható magyarországi fejleményekre. Például arra, hogy egy globális turbulencia, dekonjunktúra, recesszió, depr...

FDI as a growth stimulating factor is seen as the largest source of external financing to developing countries and helps to ease capital constraints and contributes to output and employment generation. This paper examined the impact of foreign direct investment on employment generation in Nigeria within the period 1991 to 2021. The variables used in the study include employment rate, foreign direct investment, trade openness and real exchange rate. The paper used the autoregressive distributed lag (ARDL) model for its regression analysis. The data for the analysis was sourced from CBN statistical bulletin and world bank development indicator. The study finds that foreign direct investment and Trade openness have a positive impact on employment generation in Nigeria. Real exchange rate has a negative impact on employment generation in Nigeria. The paper finds that a short run relationship exists between foreign direct investment, real exchange rate, trade openness and employment generation in Nigeria. Based on the findings, the paper recommends that Government should make effort to attract more Foreign Direct Investment into the country to create more employment opportunities through MultiNational Corporations. The Government should encourage trade openness in order to enhance more Foreign Direct Investment in the country as it will increase the standard of living of the citizens by the provision of highly paid employment.

This study examined the nexus between monetary policy and the achievement of a bank’s profit objective. There have been lots of arguments about the benefits of monetary policy implementation on deposit money bank’s operations, since the policies have been seen to impact on their performance. This study was carried out to establish the influence of variables like Liquidity Ratio, Interest and Money supply (M2), which are used as monetary policy instruments, on deposit money bank profitability objective. The study covers the period from 2002-2019. The Auto Regressive Distributed Lag and Error correction model were adopted in the analysis of the data. The study revealed that there was a positive long run relationship between Liquidity Ratio and deposit money bank’s profitability; there also existed a negative long run relationship between interest rate and deposit money bank profitability; lastly, there existed a positive long run relationship between Money Supply (M2) and deposit mone...

Administrative inefficiency and ineffectiveness like red tapism, bottleneck, lethargy, statism, infringement of human right, employee work dissatisfaction and many more led to the necessary establishment of the Ombudsman institution which has its roots in Sweden over two hundred years ago. However, the institution in Nigeria could be trace back to the Udoji Reform of 1974 that recommended its establishment in Nigeria. The main purpose of this research is to analyze the institution of the ombudsman and its effect on the bureaucracy practiced in Nigeria. This study therefore, assesses the Ombudspersons by investigating them in the operations of a smooth bureaucracy as well as analyzing their successes and failures in the past years of existence. To achieve this objective, related literatures and publications were reviewed and the research discovered that to a greater extent the ombudsman has been able to solve problems relating to it notwithstanding its several short coming, and as such; if properly financed, and left independent, it will enhance smooth bureaucracy in the country.

The study investigates the drivers of deforestation in Nigeria using annual time series data for the period 19902012. The data on all the variables were tested for unit root using KPSS unit root test. The results from KPSS units root test revealed that all the variables are stationary at level. And they are cointegrated as reported by the Engle granger test for cointegration. The result from fully modified ordinary least squares (FMOLS) indicates that wood fuel, economic growth, agricultural land and foreign direct investment have significant positive impacts on deforestation with urbanization been inversely related to deforestation in the long run. Government should give more emphasis on providing alternative means of cooking and lightening apart from fire woods, providing modern means of farming with crops that require small amount of land and lastly emphasis more on public enlightenment campaign on the dangers of deforestation and desertification.

This research model looks at the long-term relationship between exchange rates, interest rates, and inflation using Autoregressive Distributed Lag (ARDL) co-integration analysis based on database 2018. This study aims to ensure stability in the exchange regime through the structurally nexus of interest rates and inflation volatility and its targets. The data used is historical data on the country of China from 1987-2017. The results of the estimates show that inflation and interest rates in the previous period had a significant effect on the movement of the Chinese exchange rate, while the movement of the exchange rate of the previous period did not affect the movement of the exchange rate of the next period. Although there is a long-term cointegration between the independent variables, namely interest rates and inflation (CPI) against the dependent variables i.e. exchange rates, the long-term relationship between independent variables does not significantly affect the dependent var...

Corruption in Nigeria has long hindered economic development and raised concerns about resource misallocation, reduced foreign direct investment, and eroded public confidence in institutions. Established in 2003, the Economic and Financial Crimes Commission (EFCC) was tasked with combating economic and financial offenses, including corruption. This study aimed to assess the impact of anti-corruption efforts, particularly the role of the Economic and Financial Crimes Commission (EFCC), on Nigeria's economy. A survey research design was employed, with data collected through 109 structured questionnaires administered to personnel from various units of the EFCC at the Enugu state branch. Out of the questionnaires distributed, 100 were properly filled out and returned for analysis. Respondents were selected using a simple random sampling technique. The collected data were processed using the Statistical Package for Social Sciences (SPSS) 20.0. Descriptive statistical tools, such as simple percentages presented in tables and charts, were used to analyze and interpret the questionnaire data. The study revealed several key findings. Firstly, it emphasized the importance of the fight against corruption in Nigeria. Secondly, it highlighted the positive impact of anti-corruption efforts on the country's economy. Thirdly, it found that the EFCC has been making progress in combating corruption. Lastly, it confirmed that corruption hinders Nigeria's economic development. In conclusion, this study casts a glaring spotlight on the corrosive impact of corruption on Nigeria's economy, translating to staggering losses exceeding $100 billion in GDP. Consequently, the research emphasized the necessity of intensifying anti-corruption efforts. It proposed recommendations to address this issue, including the strengthening of anti-corruption agencies, the improvement of legal frameworks, and the promotion of economic growth as crucial steps towards achieving sustainable development in Nigeria.

This study examined the impact of financial development and economic growth on poverty reduction in middle-income African countries using panel data from 1990 to 2021. The study was limited to Botswana, Kenya, Nigeria, South Africa and Tunisia. Im, Pesaran and Shin unit root test and Pedroni cointegration test approach were used for data analysis. Also, data were analysed using Panel ARDL model based on MG and PMG estimators proposed by Peseran and Smith (1995) and Peseran, Smith and Shin (1999). Results of the unit root test shows the variables are stationary of mixed order, while cointegration test indicates that the variables are linearly cointegrated in the long run. The study revealed that financial development proxy by broad money as share of GDP and broad money as ratio to reserve contributed to poverty reduct ion in the long the-run. On the other hand, Economic growth proxy by gross domestic product per capita also contributed to poverty reduction in the long run. On the contrary, financial development proxy by domestic credit to private sector as share of GDP had detrimental impact of poverty. To reduce poverty, the study recommended the need for the middle-income countries to implement long run sustainable financial and growth policies. Also, there is need for the implementation of sustainable financial policies that will encourage more credits to private sector at single digit interest rate to promote inclusive financial system, grow the economy and increase income redistribution and reduction in poverty.

The Greek financial crisis is instrumentally linked to the ECB’s ‘non-conventional’ monetary policy tools developed since 2010.  The official rationale of these policies, known as the Securities Market Programme, was to insulate the financial markets from the ramifications of a possible Greek sovereign default.  Translated into actual policy measures, it provided an outlet for the European banks - mainly German, French and Dutch - to offload the government bonds of Greece and other peripheral countries held by them at the time to the ECB.

In this way, the ECB became one of the lenders of Greece and a member of the triumvirate of institutions – the Troika - overseeing the implementation of the so-called adjustment programmes signed by Greece and its Eurozone partners in 2010, 2012 and 2015.  The ECB has in other words become a staple part of the crisis management framework started in 2010.  The ECB’s Outright Monetary Transactions programme as well as its Quantitative Easing policies build on the experience gained in relation to the Securities Market Programme.

The election of a left-wing party to the government of Greece in early 2015 provided the testing ground for the ECB in dealing with a member state challenging the prevailing policy dogma of the EU.  The ECB took swift action in applying pressure on the country’s liquidity.  In the first six months of 2015 a succession of measures were imposed on the Greek banking system, leading to financial asphyxiation and to the need for capital controls.  In this way, the non-compliant member state was ‘disciplined’.  At the same time, the deeply political nature of the ECB became amply clear.

This paper investigates empirically digitalization as a vehicle for innovation that brings about growth and effectiveness to deposit money banks in Nigeria. The data utilized for the study were sourced from Statistical Bulletin of Central Bank of Nigeria spanning from the period of 2010-2018. A documentary and econometrics technique were used for the study. Various analysis/test were conducted ranging from graphical regression analysis, test of stationarity, long-run relationship test, granger causality test to residual diagnostic tests. From the interpretation of empirical result of the study, it was discovered that digitalization has negative and significant influence on the growth and effectiveness of deposit money banks in Nigeria. Based on the findings of the study, it is recommended, among others, that Education and sensitization of customers on how to use the various mobile apps and other applications for transactions should be carried out and intensified by Deposit Money Ban...

Georg Simmel, a German philosopher writing his sociological works in the late nineteenth century, formerly forgotten, now belongs to the authors of the re-popular. In recent years, new editions of Georg Simmel's monographic works have appeared in Germany and also in Poland. In the first published in 1900 "Philosophy of Money", the author did not limit himself to considerations concerning only the problem of socioeconomics, but also took into account a number of other problems related to sociology, economics and finance, many of which are still valid. A significant part of the considerations in the "Philosophy of Money" concerned the nature, function and importance of money in the context of the effective functioning of social economic processes. The analysis of the sources of financial crises that occurred several dozen and more than a hundred years later since the first issue of "Philosophy of Money" emerges from the analysis contained in the "Philosophy of money" of the paraphilosophical thoughts of Georg Simmel. Georg Simmel in his work stated that: "both rapid price drops and unconscious booms may be the cause of many breakdowns and destruction of the basis of existence. (...). The great bankers from these opposing dangers (...) managed to achieve even profits". In the context of the last global financial crisis of 2008, Georg Simmel's statements seem to be still valid.

Since the emergence of the global financial crisis, a decade of time has passed, which allowed for a number of analyzes aimed at assessing government intervention programs of anti-crisis activities to rescue key economic entities from financial bankruptcy and to stimulate demand, investment and production as well as liquidity in the credit market . Currently, taking into account successful intervention in this area in the American economy, the result of these assessments is easy to predict. As part of the pro-development activities of the state intervention, the Federal Reserve Bank applied a low monetary policy of low interest rates and a program for activating lending and maintaining liquidity in the financial system by financing the purchase of the most endangered assets from commercial banks. A few years later, the European Central Bank applied the same activities of activation monetary policy. Currently, among economists prevails the view that if it were not for the application of rapid state intervention referring to the Keynesian formula from 1930s, the scale of the economic slowdown in the world and individual countries would be much greater.

This paper reviews the book by Professor Richard A. Werner entitled "A Lost Century in Economics. Three Theories of Banking and Accurate Evidence ", which was translated and published in Polish in August 2016. This book has become an inspiration for the role, significance and need for reforming modern central banking systems and monetary systems in developed countries. Numerous discussions and reflections on the issues described in this book were made, inter alia, during several conferences held during the last few months. For example, the concepts and needs of the reform of modern central banking systems and monetary systems, as described by Professor Richard A. Werner, have inspired the discussions that took place during the Conference on "Implementation of parallel local currency in the Otwock District", held on 31 August 2016. In the seat of the Warsaw Higher School in Otwock near Otwock.

Since 1989, the central bank in Poland is the National Bank of Poland, whose activity is regulated by the Act on the National Bank of Poland. According to the regulations of this Act and in connection with the functioning of the national currency in Poland, ie the Polish zloty, the central bank conducts the entire monetary policy in Poland. The National Bank of Poland, using its instruments of domestic monetary policy, may influence economic processes within the framework of countercyclical intervention in order to activate economic processes, affecting the amount of circulating money in the economy and changing the cost of money borrowed in loans by commercial banks to economic entities. In this way, in the situation of a significant slowdown in the country's economic growth caused by the global financial crisis, the National Bank of Poland runs anti-crisis, interventionist monetary policy. Such activities have already been carried out by central banks in many other countries in the past. Despite the fact that the financial market, like other markets, is built according to the classic model of the market mechanism, in which two sides of the market interact, ie demand and supply, and the subject of trading is cash in cash or contained in various financial instruments, but it is it is a particularly institutionalized and regulated market.

The financial market in Poland consists of institutions and rules of market trading regulated by legal norms of laws and regulations defined by financial law regulations. The main banking sector in Poland is the banking system, which in the model of the western banking model was in 1989 structured in a two-tier structure with a division into central and commercial banking. The central bank is the main institution of the interbank market and indirectly also of the entire financial market. The central bank, using monetary policy instruments, regulates the amount of money in the national economy. These instruments include the impact on interest rates on the interbank market, open market operations, lending and deposit operations and shaping the reserve requirement of commercial banks. The application and functioning of these monetary policy instruments is strictly regulated by law. Despite the fact that the financial market, like other markets, is built according to the classic model of the market mechanism, in which two sides of the market interact, ie demand and supply, and the subject of trading is cash in cash or contained in various financial instruments, but it is it is a particularly institutionalized and regulated market.