The microfoundation of macroeconomic populism: The effects of economic inequality on public inflation aversion

Kim, Hyunwoo

doi:10.1111/ecpo.12210

Cited by 3 publications

(3 citation statements)

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“…According to Keynes's theory, when the economy expands and aggregate demand causes inflation, there is a high probability that people will earn more money. In general, inflation caused by economic cycles has a greater impact on income than spending and will ultimately improve bank performance (Adem, 2023;Balakrishnan & Parameswaran, 2023;Ghosh &;Nath, 2023;H. Kim, 2023;Sümer, 2023).…”

Section: Effect Of Inflation On Mudharabah Financingmentioning

confidence: 99%

Interconnection of Inflation, Bi Rate, and Exchange Rate on Mudharabah and Murabahah Financing

Ridho Kismawadi,

Annisa Shafira Tania,

Iskandar

et al. 2023

JEBIS

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The purpose of this study is to analyze the relationship between inflation, BI interest rates, and exchange rates on Mudharabah and Murabahah financing at Sharia Commercial Banks. This research is a quantitative study that applies the Johansen Integration Test and Vector Error Correction Model to see the long-term impact and shock response on certain variables. Research findings show that the exchange rate has a significant negative impact in the short term on Mudharabah financing income, while inflation factors and BI interest rates have a smaller negative impact in the short term. The receipt of Murabahah financing is negatively affected by all factors, especially inflation, BI interest rates, and currency exchange rates. Inflation and exchange rates have a significant negative impact in the long run on Mudharabah and Murabahah financing income, while BI interest rates have a small positive impact in the long run. Recommendations based on the results of this study are the importance of maintaining exchange rate stability and controlling inflation, as well as the need for effective risk management in the face of exchange rate fluctuations and inflation. In addition, Islamic banks need to improve operational efficiency, educate customers about economic risks, and encourage collaboration between relevant institutions for further research and better policy development.

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Section: Effect Of Inflation On Mudharabah Financingmentioning

confidence: 99%

Interconnection of Inflation, Bi Rate, and Exchange Rate on Mudharabah and Murabahah Financing

Ridho Kismawadi,

Annisa Shafira Tania,

Iskandar

et al. 2023

JEBIS

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“…Scholars find that after economic shocks, populists often gain votes in particularly economically deprived regions (Fernández-Albertos, 2018), and political austerity increases the support of both left- and right-wing populists (Baccini & Sattler, 2020). Finally, populism is often a response to economic inequality, and large cross-country surveys show that inequality makes citizens less averse to inflation (Kim, 2022). Lower interest rates thus appeal to populists.…”

Section: Populist Governments and Independent Central Banksmentioning

confidence: 99%

Populism and De Facto Central Bank Independence

Gavin

Manger

2022

Comparative Political Studies

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Although central bank independence is a core tenet of monetary policy-making, it remains politically contested: In many emerging markets, populist governments are in frequent public conflict with the central bank. At other times, the same governments profess to respect the monetary authority’s independence. We model this conflict drawing on the crisis bargaining literature. Our model predicts that populist politicians will often bring a nominally independent central bank to heel without having to change its legal status. To provide evidence, we build a new data set of public pressure on central banks by classifying over 9000 analyst reports using machine learning. We find that populist politicians are more likely than non-populists to exert public pressure on the central bank, unless checked by financial markets, and also more likely to obtain interest rate concessions. Our findings underscore that de jure does not equal de facto central bank independence in the face of populist pressures.

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“…In addition, measures like quarantine, social distancing and, more recently, the economic and social aggravations, have brought social inequalities into focus, especially considering the reduction in the purchasing power of the minimum wage and the inflation evidenced in several countries ( 8 – 10 ).…”

Section: Introductionmentioning

confidence: 99%

Proximity matrix indicates heterogeneity in the ability to face child malnutrition and pandemics in Brazil: An ecological study

Miguel

Silva²,

Trindade‐da‐Silva³

et al. 2022

Front. Public Health

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BackgroundAmong the social inequalities that continue to still surpasses the basic rights of several citizens, political and environmental organizations decisively “drag” the “ghost” of hunger between different countries of the world, including Brazil. The COVID-19 pandemic has increased the difficulties encountered in fighting poverty, which has led Brazil to a worrying situation regarding its fragility in the fight against new pandemics.ObjectivesThe present study aims to estimate, compare, and report the prevalence of mortality due to child malnutrition among the macro-regions of Brazil and verify possible associations with the outcome of death by COVID-19. This would identify the most fragile macro-regions in the country with the greatest need for care and investments.MethodsThe prevalence of mortality was determined using data from the federal government database (DataSus). Child malnutrition was evaluated for the period from 1996 to 2017 and COVID-19 was evaluated from February to December 2020. The (dis)similarity between deaths from malnutrition and COVID-19 was evaluated by proximity matrix.ResultsThe North and Northeast regions have above average number of deaths than expected for Brazil (p < 0.05). A prospective analysis reveals that the distribution of the North and Northeast macro-regions exceeds the upper limit of the CI in Brazil for up to the year 2024 (p < 0.05). The proximity matrix demonstrated the close relationship between deaths from COVID-19 and malnutrition for the Northern region followed by the Northeast region.ConclusionsThere are discrepancies in frequencies between macro-regions. Prospective data indicate serious problems for the North and Northeast regions for the coming years. Therefore, strategies to contain the outcome of health hazards must be intensified in the macro-regions North and Northeast of the country.

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The microfoundation of macroeconomic populism: The effects of economic inequality on public inflation aversion

Cited by 3 publications

References 98 publications

Interconnection of Inflation, Bi Rate, and Exchange Rate on Mudharabah and Murabahah Financing

Interconnection of Inflation, Bi Rate, and Exchange Rate on Mudharabah and Murabahah Financing

Populism and De Facto Central Bank Independence

Proximity matrix indicates heterogeneity in the ability to face child malnutrition and pandemics in Brazil: An ecological study

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