Monetary policy implementation and money demand instability during the financial crisis

Kapounek, Svatopluk

doi:10.11118/actaun201159070177

Cited by 3 publications

(2 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In literature, the market capitalization as a proportion of GDP, number of listed companies, value of shares traded as a percentage of GDP, value of shares trades as a percentage of market capitalization are used as proxy variables of stock market development. Also monetary aggregates are used as a possible proxy of financial development, e. g. see Kapounek (2011) or Kar et al (2011). J.…”

Section: Introductionmentioning

confidence: 99%

Stock Market Development and Economic Growth: Evidence from the European Union

Kajurová¹,

Rozmahel²

2017

Acta Univ. Agric. Silvic. Mendelianae Brun.

View full text Add to dashboard Cite

The paper examines the causal relation between the stock markets development and economic growth in the EU countries. In particular, the nature and causality direction is investigated. Panel data techniques including cointegration tests, vector error correction models and Granger causality tests were applied to indicate the nature and direction of causality. Long‑run effects of the economic growth upon stock market development was detected in the sample of the Euro area member countries. In addition, the short‑run mutual relations between growth and stock markets were indicated in that country‑sample. In the non‑Euro area countries, only short‑run impact of the stock market development upon economic growth was found. The empirical findings bring up implications for macroeconomic stabilization and development policies. The indicated relations also play a role in predicting economic growth and stock markets’ development.

show abstract

Section: Introductionmentioning

confidence: 99%

Stock Market Development and Economic Growth: Evidence from the European Union

Kajurová¹,

Rozmahel²

2017

Acta Univ. Agric. Silvic. Mendelianae Brun.

View full text Add to dashboard Cite

show abstract

“…The process of money creation is caused by economic and investment activity which reduced a er the fi nancial crisis. Moreover, the Czech Republic is signifi cantly linked with the banking system in the euro area where the upper limit of credit money creation disappears (Kapounek, 2011). Therefore, the probability of a credit crunch in the Czech Republic is very low.…”

Section: Discussionmentioning

confidence: 99%

Is There a Credit Crunch in the Czech Republic?

Reznakova¹,

Kapounek²

2015

Acta Univ. Agric. Silvic. Mendelianae Brun.

Self Cite

View full text Add to dashboard Cite

We apply a disequilibrium model of credit demand and supply to test the credit crunch hypothesis. We suppose that fi rms face credit rationing and a realised outstanding loan will be the minimum desired level of commercial bank loans and bank limit for the fi rm. We adopted the disequilibrium model which consists of credit supply and credit demand equations. We suggest that actual observed credit growth rate at time t lies on the supply curve (excess demand), or on the demand curve (excess supply), or on both (equilibrium). Our model is estimated by the full-information maximum likelihood approach with a numerical maximization of the likelihood function. Our basic fi ndings show that signifi cant decrease in credits a er the fi nancial crisis in the year 2007 was caused by low economic and investment activity and reject the hypothesis that there is a credit crunch in the Czech Republic.

show abstract

Evaluating structural relations between money demand and its determinants

Umoru¹,

Effiong²,

Ugbaka³

et al. 2023

CGOBR

View full text Add to dashboard Cite

The relationship between money demand and specific macroeconomic predictors has been explained by a number of money demand theories. Panel structural vector autoregressive (SVAR) and generalized autoregressive conditional heteroskedasticity (GARCH) techniques were deployed to analyze the data on money demand with lag adjustment in relation to inflation uncertainty, interest rate variations, household consumption, and exchange rate depreciation in Africa. The study which covers 30 African nations discovered a two way relationship between money demand and price level variation. While higher prices would increase demand for money, the same demand also influences changes in a nation’s price level, such that in the long run, inflation would result from more money held by economic units. With a standard deviation of 5.51, Guinea had the most erratic money demand, followed by Sierra Leone at 5.29. A variance of inflation uncertainty ranged from 9.45 percent to an extremely high proportion for Congo. Exchange rate devaluation is found to be considerably impactful in determining money demand. Results show that as more of the units of the local currency is used to exchange a unit of foreign currency such as the dollar, local economic units are discouraged to increase demand for money in local money and thus hold fewer local currencies while investing in foreign exchange investments

show abstract

Monetary policy implementation and money demand instability during the financial crisis

Cited by 3 publications

References 25 publications

Stock Market Development and Economic Growth: Evidence from the European Union

Stock Market Development and Economic Growth: Evidence from the European Union

Is There a Credit Crunch in the Czech Republic?

Evaluating structural relations between money demand and its determinants

Contact Info

Product

Resources

About