Effectiveness of anti-inflation policy that ensures economic growth: Evidence from post-Soviet countries

Kerimov, Atik; Babayev, Azer; Ashurbayli-Huseynova, Nigar; Gubadova, Aybaniz A.

doi:10.21511/ppm.21(2).2023.50

Cited by 3 publications

(1 citation statement)

References 41 publications

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“…The decisive role of the monetary policy of central banks in ensuring the regulation of inflation has been repeatedly proven by international researchers (Nguyen et al, 2022;Suhendra & Anwar, 2022). In particular, the importance of anti-inflationary policies in ensuring financial stability and macroeconomic growth has been established (Kerimov et al, 2023b). It has been proven that the development of the financial system of countries largely depends on its social, cultural, political features (Njegovanović, 2023;Bilan et al, 2020;Boiko et al, 2021;Chumachenko et al, 2021), as well as on the intensity of implementation internationally recognized regulatory norms and principles (Habiba, 2023;Kuznyetsova et al, 2017a).…”

Section: Literature Reviewmentioning

confidence: 98%

Central bank independence as a prerequisite for ensuring price stability: Modeling the role of the national pattern

Kerimov,

Babayev,

Dudchenko

et al. 2023

Banks and Bank Systems

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Ensuring price stability is a dominant function of the central bank. Empirical studies on various statistical samples give conflicting results regarding the influence of central bank independence on the inflation rate. The study offers a methodology for assessing the role of the formation of a national pattern of central bank independence in ensuring price stability. Calculations were made for 53 countries of the world using a combination of cluster analysis tools and panel regression modeling. The cluster analysis carried out at different time intervals of the study allowed defining three patterns of the formation of central bank independence. The changes in the clusters characterizing the peculiarities of the national patterns of central bank independence shows that for a number of countries there is no stable national pattern. Modeling based on panel data showed that when forming a country pattern “Limited level of central bank independence”, an increase in the level of independence of the central bank by one unit on average leads to an increase in the inflation rate by 7.09%. On the other hand, in the countries with the national patterns of central bank independence “Dominance of the institutional and financial component of ensuring the independence of the central bank” and “Dominance of the personal and functional component of ensuring the independence of the central bank”, the expected consequence of increasing the level of independence of the central bank by one unit is to reduce the inflation rate by an average of 3.32% and 6.03%, respectively.

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Section: Literature Reviewmentioning

confidence: 98%

Central bank independence as a prerequisite for ensuring price stability: Modeling the role of the national pattern

Kerimov,

Babayev,

Dudchenko

et al. 2023

Banks and Bank Systems

Self Cite

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Interconnection between bank capitalization and macroeconomic stability in the countries of South-West Asia

Ashurbayli-Huseynova,

Garmidarova

2023

Banks and Bank Systems

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The paper aims to define the specifics of the mutual interconnection between bank capitalization and indicators of macroeconomic stability. This is achieved by the following methods: grouping, analysis and synthesis, analysis of descriptive statistics, and canonical correlation analysis. The study was carried out based on eight bank capitalization indicators and five macroeconomic stability indicators in seventeen South-West Asian countries from 2010 to 2020. The information base of the research is the dataset from the World Bank. The selected list of indicators is determined by the availability of statistical information for the countries participating in the study. It was found that there is a close canonical correlation between the level of bank capitalization and the macroeconomic stability of the countries under investigation – 0.97 (2010) and 0.99 (2020). The variation of the investigated indicators of macroeconomic stability (68.95% (2010) and 70.64% (2020)) is determined by the change in bank capitalization indicators. On the other hand, the difference in macroeconomic stability indicators of countries by 48.66% (2010) and 42.79% (2020) is due to changes in bank capitalization indicators. Four indicators exert the most significant favorable influence on the level of bank capitalization: Bank return on assets – 0.303 (2010) and 13.033 (2020), Bank return on equity – 0.446 (2010) and 13.387 (2020), Bank regulatory capital to risk-weighted assets – 0.812 (2010), and Bank deposits to GDP – 1.580 (2020). The macroeconomic stability of countries is determined by two indicators: GNI – 3.311 (2010) and 3.461 (2020); GDP – 4.748 (2010) and 4.672 (2020).

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The impact of investment and social factors on pension savings in Kazakhstan

Bekbossinova

Kireyeva²,

Kenzhegulova

et al. 2023

Investment Management and Financial Innovations

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In the current social conditions, pension systems have become the most important topic on the agenda for many countries. Therefore, governments have started paying attention and should reform their pension systems to guarantee an adequate contribution to pensions. Thus, this study analyzes the impact of investments and social factors on pension savings using Kazakhstan as an example. The paper is based on secondary data from the annual reports of the Unified Accumulative Pension Fund and annual statistical reports of the Bureau of National Statistics of the Republic of Kazakhstan from 2014 to 2022. SPSS software was used to analyze the collected data, specifically through correlation and regression analysis, to determine the impact and relationships between selected indicators (i.e., inflation rate, number of contributors, pension contribution, investment income and average wage). To check the reliability of the models, Fisher’s F-test and Student’s t-test were conducted. Therefore, a VIF diagnosis was conducted. The correlation analysis results showed that in the group of investment factors, pension savings are more dependent on pension contributions (,900**), and in social factors, on average wages (1,000**). Based on the results obtained, all factors have a positive impact on pension savings, except inflation. Inflation growth by 1% on average reduces the amount of pension savings by 23% over the nine-year period between 2014 to 2022, which is reflected in the results of Model 2. The study’s results can be applied to managing pension funds and reforms related to the pension system. AcknowledgmentsThis research was funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (Grant “Exploring the impact of economic, social, and environmental factors on the relationship between urbanization and greenhouse gas emissions” No. AP19576071).

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Effectiveness of anti-inflation policy that ensures economic growth: Evidence from post-Soviet countries

Cited by 3 publications

References 41 publications

Central bank independence as a prerequisite for ensuring price stability: Modeling the role of the national pattern

Central bank independence as a prerequisite for ensuring price stability: Modeling the role of the national pattern

Interconnection between bank capitalization and macroeconomic stability in the countries of South-West Asia

The impact of investment and social factors on pension savings in Kazakhstan

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