Digital Currency and Monetary Policy in Tanzania: Empirical Investigation | Chapter 8 | New Advances in Business, Management and Economics Vol. 12

 

Despite the progress made in managing macroeconomic policies in Tanzania, the expectations that the existing digital environment can support stable monetary policy performance remain uncertain due to a lack of studies in this area. There are concerns about the potential effects of cryptocurrencies on monetary policy performance in Tanzania. This study investigated the effects of digital currency on monetary policy in Tanzania. The main variables were Bitcoin (BTC) and Mobile money transaction (MBT) as the independent variables and Money supply (M3) as the dependent variable. A quantitative methodology was employed, using empirical analysis and estimation methods. Quarterly time-series data covering the period from 2014Q1 to 2021Q4 were used and were obtained from the Bank of Tanzania, Tanzania National Bureau of Statistics and online data from  www.blockchain.com. The Vector Error Correction Model (VECM) was used to estimate the empirical regression model, while STATA version 14 was used to analyse data. The results indicated a significant negative relationship between BTC and M3, and a significant positive relationship between MBT and M3 in Tanzania. The study concluded that digital currency has a significant effect on monetary policy in the country. It is recommended that both the bitcoin and mobile money transaction markets work together to affect monetary policy and economic growth in the country. Therefore, the government should show more concern about the use of these two forms of money market so as to make the country achieve high economic growth.

 

Author(s) Details

Kennedy Arthur Wainyaragania
Economics and Business at the Faculty of Business Administration, Catholic University of Mbeya (CUoM), Tanzania.

 

Please see the book here :- https://doi.org/10.9734/bpi/nabme/v12/6950

Monetary Policy and Sustainability: Historical Lessons and Contemporary Challenges | Chapter 11 | Contemporary Research in Business, Management and Economics Vol. 9

 

In this chapter, the role of monetary policy in addressing inflation and deflation from a sustainability perspective will be examined. The effectiveness of traditional interest rate adjustments in the current economic climate, influenced by geopolitical factors and speculation will be examined. In this chapter, the historical context of monetary policy, particularly the strategies employed by Volcker's FED in the 1980s, is examined and contrasted with contemporary challenges. The findings suggest that while interest rate hikes can curb speculation, they may not effectively control inflation driven by international cost pressures. A re-evaluation of monetary strategies to align with sustainable economic practices may be required.

 

A difficult moment for broader monetary policy, hit by the accusation of having caused the looming global recession with the rise in rates. But is it really like that? That is, would a more accommodative monetary policy have saved the economy for everyone? Probably a poorly posed question, because it is difficult to agree with those who want to blame the policies of the main banks for an economy that is not actually getting worse. Meanwhile, it should be emphasized that inflation due to international prices cannot be cured by manipulating interest rates. Nonetheless, major central banks made (on average) ten consecutive small jumps as inflation reared its head, resurrected by rising international prices. How can we now explain the interest rate shock to the real economy if the rates themselves have almost no effect on international price-driven inflation? What is perhaps meant is that with the proposed interest rate cut, we could avoid the reduction in prices due to the announced recession? But this hypothesis also does not seem to hold because the expected recession is not in sight and the stability of interest rates does not harm the economy. However, if central banks around the world insist on this unaccommodated tone, they must have their own reasons. Meanwhile, we can say that there was and still is a good reason, but it is only partly linked to the inflation of international prices. Indeed, the decision to repeatedly raise interest rates, which hovered around zero, was sacrosanct. It ended cheap credit, which in turn encouraged speculation in the prices of oil and rare metals. The pace of rising rates as stock market pressure eases is obviously less clear. The answer seems to be that central banks did not change their model after the victory over inflation achieved by Volcker's FED, which raised rates above the inflation rate in the early 1980s. With the exceptional result of bringing inflation back under control and a record economic situation in the USA. But those were different times and another standard of inflation, linked to errors in the direction of the economy and not to the expected effects of speculation as in today's context.

 

 

Author(s) Details

Giovanni Antonio Cossiga

Collegio Sindaci Policlinico Umberto 1, Università Sapienza, Rome, Italy.

 

Please see the link:- https://doi.org/10.9734/bpi/crbme/v9/960

Financial Vulnerability, Customer Engagement and Satisfaction in South African Banks: A Structural Equation Model | Chapter 4 | Economics and Entrepreneurship: The Proceedings of the 10th International Conference on Business and Management Dynamics (ICBMD), Edition 1

This study investigates the impact of financial vulnerability on customer engagement and satisfaction within the South African banking sector under a persistent inflation and prolonged contractionary monetary policy environment.

The relationships examined were hypothesized based on the SABI model, which underpins the functional analysis of interactions provided by the interdependence theory. Utilizing a structural equation modeling approach, data were collected from 314 bank customers through the questionnaire method. The analysis reveals a significant and positive relationship between financial vulnerability and customer engagement (p < 0.05), indicating that customers with lower financial resilience engage more with their banks. Furthermore, a direct and significant link (p < 0.05) between financial vulnerability and customer satisfaction suggests that current financial hardships do not diminish overall satisfaction levels. However, a positive relationship between customer engagement and customer satisfaction is not statistically significant, suggesting that customer interactions were not a determining factor of their satisfaction level. These findings imply that monetary policymakers and banks should adapt their strategies to support financially vulnerable customers, promote customer engagement, and thus enhance bank-customer long-term relationships. However, the study is limited by the demographic scope of the sample, necessitating further research to validate these insights across diverse customer segments.

 

Author (s) Details

 

Sophie Kasse-Kengne
Cape Peninsula University of Technology, South Africa.

 

Please see the book here:- https://doi.org/10.9734/bpi/mono/978-93-49238-53-4/CH4

Monetary Policy and Sustainability: Historical Lessons and Contemporary Challenges | Chapter 11 | Contemporary Research in Business, Management and Economics Vol. 9

In this chapter, the role of monetary policy in addressing inflation and deflation from a sustainability perspective will be examined. The effectiveness of traditional interest rate adjustments in the current economic climate, influenced by geopolitical factors and speculation will be examined. In this chapter, the historical context of monetary policy, particularly the strategies employed by Volcker's FED in the 1980s, is examined and contrasted with contemporary challenges. The findings suggest that while interest rate hikes can curb speculation, they may not effectively control inflation driven by international cost pressures. A re-evaluation of monetary strategies to align with sustainable economic practices may be required.

A difficult moment for broader monetary policy, hit by the accusation of having caused the looming global recession with the rise in rates. But is it really like that? That is, would a more accommodative monetary policy have saved the economy for everyone? Probably a poorly posed question, because it is difficult to agree with those who want to blame the policies of the main banks for an economy that is not actually getting worse. Meanwhile, it should be emphasized that inflation due to international prices cannot be cured by manipulating interest rates. Nonetheless, major central banks made (on average) ten consecutive small jumps as inflation reared its head, resurrected by rising international prices. How can we now explain the interest rate shock to the real economy if the rates themselves have almost no effect on international price-driven inflation? What is perhaps meant is that with the proposed interest rate cut, we could avoid the reduction in prices due to the announced recession? But this hypothesis also does not seem to hold because the expected recession is not in sight and the stability of interest rates does not harm the economy. However, if central banks around the world insist on this unaccommodated tone, they must have their own reasons. Meanwhile, we can say that there was and still is a good reason, but it is only partly linked to the inflation of international prices. Indeed, the decision to repeatedly raise interest rates, which hovered around zero, was sacrosanct. It ended cheap credit, which in turn encouraged speculation in the prices of oil and rare metals. The pace of rising rates as stock market pressure eases is obviously less clear. The answer seems to be that central banks did not change their model after the victory over inflation achieved by Volcker's FED, which raised rates above the inflation rate in the early 1980s. With the exceptional result of bringing inflation back under control and a record economic situation in the USA. But those were different times and another standard of inflation, linked to errors in the direction of the economy and not to the expected effects of speculation as in today's context.

 

Author (s) Details

 

Giovanni Antonio Cossiga,
Collegio Sindaci Policlinico Umberto 1, Università Sapienza, Rome, Italy.

 

 

Please see the book here:- https://doi.org/10.9734/bpi/crbme/v9/960

The Quantifiable Relationship between Monetary Policy and the Australian Property Market | Chapter 14 | Contemporary Research in Business, Management and Economics Vol. 8

 

The present study highlights about quantifiable relationship between Monetary Policy and the Australian Property Market. The use of monetary policy has important implications within an economy as it directly affects the supply and demand of cash itself. The adjustment of the official cash rate (OCR) and its implications on the domestic and international arenas are among Australia's most prominent uses of monetary policy. To quantify the impact of the OCR on the Australian housing markets, we look at both effects from domestic sources and effects from overseas investors.

This research also draws attention to the variation in the growth rate of property prices in major Australian cities and how it reacts to the changes in this major economic variable. Our study also addresses the limitations of the devised models however, at a high level these models give guidance to general movements in housing prices given monetary policy changes with fixed money supply as determined by the Reserve Bank of Australia (RBA) and with that reinforced by movements in several macroeconomic indicators. In the case of a booming housing market where foreign direct investment and domestic real estate investment are growing rapidly, change in the adverse direction on a normal notion will not translate as anticipation based on investment expectation that leads to inaccuracy in measuring the opportunity cost of investment. We conclude that the monetary policy of RBA is effective but inefficient in dealing with property prices and property prices are affected not only by the change in OCR, but also shifts due to foreign investments and economic outlook.

 

Author(s)details:-

 

Syed Muhammad Tafseer Naqvi
Australian School of Business, University of New South Wales, Kensington, Sydney NSW 2033, Australia.

 

Benjamin Choo
Australian School of Business, University of New South Wales, Kensington, Sydney NSW 2033, Australia.

 

Chen Yu Yan
Australian School of Business, University of New South Wales, Kensington, Sydney NSW 2033, Australia.

 

Tony Wen Fang
Australian School of Business, University of New South Wales, Kensington, Sydney NSW 2033, Australia.

 

Yihan Liu
Australian School of Business, University of New South Wales, Kensington, Sydney NSW 2033, Australia.

 

Please See the book here :-  https://doi.org/10.9734/bpi/crbme/v8/792

Modeling the Macroeconomic Determinants of Bank Credit in Saudi Arabia | Chapter 4 | Contemporary Research in Business, Management and Economics Vol. 4

Bank credit mechanisms play a crucial role in conditioning how the macroeconomy responds to underlying economic disturbances. Thus, the transmission of monetary policy and the propagation mechanism of business cycle shocks depend heavily on bank credit. Given its importance in this context, bank credit has received particular attention after the global financial crisis in recent decades. The purpose of this chapter is to examine the relationship between bank credit and the major macroeconomic variables of Saudi Arabia during the period from 1993 to 2019. An autoregressive distributed lag (ARDL) method was employed to estimate the short- and long-run effects of the major macroeconomic variables on bank credit. The study revealed that the real exchange rate and money supply have positive long-run effects on bank credit compared with the negative effects of inflation on bank credit. Gross domestic product (GDP) has a negative effect on total bank credit, which conflicts with the Keynesian view. In the short-run, the effect of GDP on bank credit is negative, whereas inflation has a positive influence on bank credit. Based on the results, the study recommends a number of expansionary fiscal and monetary policies, including lowering borrowing costs and raising asset prices, increasing spending and lowering taxes to create budget deficits that stabilize the financial system, and raising national income to encourage steady and sustainable growth in bank credit.  Some financial and monetary measures are required in light of the development policies to diversify the production base and not rely on oil as the sole source of income, taking into account the major economic transformations at the local and international levels, in order to achieve the goals of Saudi Arabia’s 2030 development vision.

Author(s) Details:

Mohamed Sharif Bashir,
Imam Mohammad Ibn Saud Islamic University, Riyadh, Saudi Arabia.

Ahmed Abdu Allah Ibrahim,
Alneelain University, Khartoum, Sudan.

Please see the link here: https://stm.bookpi.org/CRBME-V4/article/view/14073

Determination of Growth Efficiency of Expansionary Fiscal Policy via Monetary Policy in Shrinking Periods: Wide Range of Country Analysis | Chapter 5 | An Overview on Business, Management and Economics Research Vol. 8

There are many different opinions in the literature that expansionary fiscal policies can be effective on growth during periods of economic contraction. In this study, the effectiveness of fiscal policy is included in empirical analysis both in theory and practice, while the results of its interaction with monetary policy are also included. This study examines different approaches to expansionary fiscal policies regarding the effects and tradeoffs between fiscal expenditures-growth, expansionary tax policies-growth, and inflation-growth. The short-term and long- term effects of fiscal policies on growth in 110 countries for 2007-2016 were analyzed, considering the expansionary policies of the 2007-2009 period, the effect of the primary growth dynamics, and the interaction of monetary-fiscal policies. The results show a holistic view and effectiveness. When looking at the fiscal policies, only subsidies were found to be significant among the expenditure items in the short term, with a low probability. However, no positive relationship was found with growth. For this reason, it is observed that the fiscal policy composition discussed within the scope of the study is not pro-growth, and resources are inadequate or incorrectly transferred at the global level. It becomes clear that the common area of action in monetary policy supports growth and the importance of structural growth dynamics. Collaborating in fiscal and monetary policies among all countries may be more pro-growth. In the processes where growth was supported, inflation was reflected in the results where the trade-off was more limited.

Author(s) Details:

Tugba Demirtas,
Central Bank of the Republic of Turkiye, Istanbul, Turkiye.

Please see the link here: https://stm.bookpi.org/AOBMER-V8/article/view/13107

Ethics, Public Policies, Financial Markets, and Institutions: New Global Policies, Financial, and Social Crises | Chapter 1 | Current Topics on Business, Economics and Finance Vol. 1

In this unit are discussed some righteous issues regarding the fiscal market, the institutions, and new public policies, monetary and monetary one. Morality and morality are very important for a society and a country with its own government and reveal the wellbeing of allure structure, allure business, its organizations, its policies, allure government, allure education, its advantage system, and its life after death. All these foreshadow the future of the country with its own government and the wellbeing of its voters and future generations. In a country place ethics have been deserted, we can, from historical experience, surely to predict allure future. It has no future. A democratic government has to dictate fair regulations, laws and order, to hold the entire humankind at an advanced ethical level, however this knowledge of thousands of age of history, sophistication, experience, tradition, and disclosure. Public policy (both monetary and monetary), institutions, organisations, and instrumentalities must all be guided by ethical, fair, and moral standard. The latest two financial, economic, and public crises, particularly, the last one, the suspicious coronavirus (COVID-19) universal, the lockdowns, the elections irregularities, could have been prevented or curtailed if the accountable generators (“elites”) of these occurrences were ethical and respectful towards the different people, different nations, and to our democratic plan. But, because they are acting in favor of their egoism and against social interest, they should be controlled by the independent sovereign countries with its own government and democratic governments of the realm.

Author(s) Details:

Ioannis N. Kallianiotis,
Economics/Finance Department, The Arthur J. Kania School of Management, University of Scranton, Scranton, PA 18510-4602, USA.

Please see the link here: https://stm.bookpi.org/CTBEF-V1/article/view/9704

Economic Crises, Liberal Fiscal Policies, and Modern Monetary Policy | Chapter 1 | Current Aspects in Business, Economics and Finance Vol. 4

 This article addresses the most recent economic crises, including the global financial crisis and the many-sided coronavirus crisis, as well as the public measures put in place to lessen the effects of the downturn and boost economic growth. Since December 2008, the current target rate (monetary policy) has been set at zero in order to encourage investment, growth, and employment. This new experimental, modern monetary policy (quantitative easing, among other new measures). The abandonment of fiscal policy, the current tax structure in the United States, which lowers disposable income and causes savings to turn negative (dissaving or borrowing), as well as high inflation, which has caused real deposit rates to turn negative, have all contributed to the slow expansion of output and ongoing true unemployment. The COVID-19 issue is a protracted one that has been preserved for political gain, and it appears that people will continue to suffer through it until a new crisis is "created" by the "experts." The national debt and budget deficits have increased dramatically as a result of the policies put in place and the light tax burden placed on businesses. Because of their large debt and low income, people borrow the present value of their uncertain future wealth, which elevates the risk and pushes up the interest rate on loans, notably credit cards. To lower the national debt, the government must increase corporate taxes, minimise unnecessary expenditure (such on the military, national security, and wastes), reduce inefficiencies, and combat corruption (infrastructures). Public policies must be combined in order to prevent crises, increase growth and employment first, then reduce inflation and maintain moderate interest rates (fiscal and monetary). To promote social welfare, fairness, equity, and justice as well as to help the society's 90% middle class, which has been neglected, the current unbalanced monetary policy and tax structure must be altered and made to function optimally. Due to low disposable income, rising unemployment, and unfavourable monetary policy, the middle class cannot be harassed, controlled, or forced to labour merely to pay taxes and interest on its debt (redistribution of its wealth to the government and banks). The decline of the middle class will have a detrimental impact on the nation's whole socioeconomic system and pose a threat to its survival.

Author(s) Details:

Ioannis N. Kallianiotis,
Economics / Finance Department, The Arthur J. Kania School of Management, University of Scranton, Scranton, PA 18510-4602, United States.

Please see the link here: https://stm.bookpi.org/CABEF-V4/article/view/8285

Role of Monetary Policy during Financial Crisis and its Impact in India | Chapter 4 | New Innovations in Economics, Business and Management Vol. 10

The Sub Prime Crisis will be discussed in this essay along with its definition, causes, effects on BRIC economies, effects on the Indian economy, and lessons to be taken away. Monetary policy has a crucial role in how every economy develops. A country will be less impacted by the crisis if its monetary policy is sound and effective. India has a monetary policy structure that is more effective and stable, which has shielded us from the worst consequences of the crisis. The current economic crisis, commonly known as the "subprime crisis" or the "global financial crisis," began at the end of 2007. The "Sub Prime Crisis" that originated in the United States ultimately expanded to the rest of the globe as the "Global Financial Crisis." The Global Catastrophe is a crucial component of contemporary economics since it not only clarifies the need for an economic policy framework but also exemplifies how robust an economy is in the face of adversity. A healthy monetary policy is necessary for any economy in order to weather any financial storm. The study's conclusion is that policy should support growth rather than impede it.

Author(s) Details:

S. Madhusudhanan,

Government of India, New Delhi, India.

Please see the link here: https://stm.bookpi.org/NIEBM-V10/article/view/7409

The Economic History of Alexander the Great and his Expedition from Greece to India | Chapter 11 | New Innovations in Economics, Business and Management Vol. 8

 Xenophon is credited with developing economic theory and policy in Ancient Greece. Alexander the Renowned was a superb Hellenic monarch, civilizer, and "forerunner" who lived in the fourth century B.C. He was also a great economist, as he had to manage the economics of his huge campaign from Greece to India, as well as develop an efficient and successful public policy for his large Empire. "He sought neither pleasure or fortune, but only greatness and glory," according to the moral and ethical Greek philosophy of the period. Alexander had stated, "...I am glad the gods that I was birth Hellen..." and possessed all of the Hellenic moral and ethical principles, making him one of the most influential people in history. With salary rates, health and welfare, construction projects, supplies, transportation, tax reforms, indirect taxes and donations, loans, coin minting, and even controlling financial scandals and other information useful to our policymakers today, he had demonstrated exceptional management abilities. We use information from different historians of his time to compute and compare prices, and we use the weights of gold and silver coins to measure his budgets. The goal is to compare the expenses and revenue streams of this trip using the Greek drachma and the US currency as of today. The surpluses of Alexander's economic policies are highly valuable to our modern leaders and experts. Also discussed is the history and role of this extraordinary man, as well as the contribution of Greek civilization and language to God's plan for His revolted and deluded creation and humanity to be able to understand and accept His revelation, which Greeks had been anticipating since the Golden Age of Athens.

Author(S) Details

John N. Kallianiotis
Economics/Finance Department, The Arthur J. Kania School of Management, University of Scranton., Scranton, PA 18510-4602, U.S.A.

View Book:- https://stm.bookpi.org/NIEBM-V8/article/view/6742

Investigating the Impact of Cryptocurrencies on the Modern Banking System | Chapter 5 | Modern Perspectives in Economics, Business and Management Vol. 11

 This paper examines modern monetary instruments, particularly digital currencies and cryptocurrencies, as well as their impact on the global monetary, financial, and economic future. We shall pay special attention to how central banks around the world respond to the challenge posed by monetary constructions developed by the private sector, because they are still the main followers of all important global financial trends. The growth of digital cryptocurrencies will lead to the creation of new financial and monetary instruments and media, resulting in benefits and opportunities that have yet to be explored. Finally, we'll look at the legal structure around digital currencies and cryptocurrencies, as well as specific countries' approaches to regulation.

Author(S) Details

Agon Skeja
CFA, BKT Kosovo Bank, Macedonia.

Seadin Xhaferi
Departament of Finance Accounting, University of Tetova, Macedonia.

View Book:- https://stm.bookpi.org/MPEBM-V11/article/view/4925

Study on Assessing the Role and Contribution of the Fiscal Policy - Monetary policy Combination in Macroeconomic Management: A Case Study from Vietnam (2010–2020) | Chapter 8 | Modern Perspectives in Economics, Business and Management Vol. 7

 Despite the intricate and unpredictable variations in the global economic situation from 2011 to 2020, the Covid 19 epidemic, which began in December 2019, has become increasingly unpredictable and harmful. Vietnam's economy, on the other hand, has been able to overcome its insecurity and regain its GDP growth rate. Contributing to this result must be mentioned the role of fiscal policy and monetary policy, in which the coordination between the two policies is increasingly focused and achieved more effectively. To elucidate the role of monetary policy and monetary policy in macroeconomic management, the study use qualitative methods and multivariable linear regression (MLR). The goal of this research is to better understand and explain the role and contribution of FP and MP in macroeconomic management.

Author(s) Details

Vu Thi Kim Hanh
Van Lang university, Hochiminh City, Vietnam.

View Book ,- https://stm.bookpi.org/MPEBM-V7/article/view/3624

Investigating If Inflation is always and Everywhere a Monetary Phenomenon? The Case of Nigeria| Chapter 5 | Insights into Economics and Management Vol. 4

This research modified our earlier version of an empirical investigation of the validity of the claim of monetarists that inflation is a monetary phenomenon always and everywhere. In our previous 2013 publication, we used the autoregressive distributed lag (ARDL) modelling to analyse quarterly time series data from 1970 to 2011, concluding that inflation was a monetary phenomenon not always and everywhere. However, the ARDL results in both the short-run and long-run show that the growth of large money supply is the most important variable that amplifies the general price level after the resizing of data to cover 59 years between 1961 and 2019. We have been led by this finding to Relax our little ones  An earlier stance that rejected the view of inflation-money supply relationships of the monetarists. Our Fresh Results  It has contributed to the fact that inflation is a monetary phenomenon at all times and everywhere. We, therefore,  Slow growth in the big supply of money as a strategic monetary policy panacea to the threat  Of Nigeria's inflation.

Author (s) Details

Salami Doyin
Lagos Business School, K.M 22 Lekki-Aja Expressway, Lagos Island, Lagos State, Nigeria.

Kelikume Ikechukwu
Lagos Business School, K.M 22 Lekki-Aja Expressway, Lagos Island, Lagos State, Nigeria.

View Book :- https://bp.bookpi.org/index.php/bpi/catalog/book/348

A Case Study on Macroeconomic Policies and Their Interactions of Czech Republic| Chapter 2 | Insights into Economics and Management Vol. 2

 The paper addresses macroeconomic policy interrelations and future conflicts, and offers an empirical study of monetary and fiscal policy interactions in the Czech Republic. In the event of a significant adverse shock, the optimal combination of macroeconomic policies should promote social and economic welfare and ensure the smooth operation of the economy. One instance of such a condition may be the current global COVID-19 pandemic. While policy-consistent steps against the immediate effects of the crisis are important, the value of policy coordination in the aftermath of the acute period of the recession should also be taken into account. There is also evidence of changes in policy behaviour over time. To this end, a six-variable Bayesian VAR is built and estimated and some refinements are proposed to the modelling system. The results point to the lack of complementarity between policy measures taken by the authorities and indicate that there is still ample space for economic policies to be more successful. In times of severe economic crisis, such as the current COVID-19 pandemic, better coordination between macroeconomic policies is especially needed. A comprehensive study of their contribution to the stabilisation of the economy at various stages of the business cycle, however, is necessary and could be a focus of future research.

Author(s) Details

Pavel Rezabek
Department of Economic and Social Policy, Faculty of Economics, University of Economics, Prague, W. Churchill sq. 4, 130 67 Praha 3, Czech Republic.

Petr Doucek
Department of System Analysis, Faculty of Informatics and Statistics, University of Economics, Prague, W. Churchill sq. 4, 130 67 Praha 3, Czech Republic.

View Book :- https://bp.bookpi.org/index.php/bpi/catalog/book/315