Liquidity Creation, Oil Term of Trade Shocks, and Growth Volatility in Middle Eastern and North African Countries (MENA)

نویسندگان

چکیده

Both real and monetary shocks have been extensively researched, with conflicting findings on the involvement of banking sector following occurrence these shocks. Nonetheless, liquidity creation (LC) appears to be one most underappreciated operations. This research analyses impact LC economic volatility mechanisms through which influences in 10 MENA countries from 2000 2019. Using a recently published panel cointegration estimating approach, we show that does influence growth over long term short term—in other words, LC, as primary activity banks, helps reduce volatility. According PMG’s findings, both significantly increase compared their term. The channels expression mitigates (amplifies effect shocks) volatility, there is greater magnitude this Strengthening industry business, could critical strategy avoiding swings.

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ژورنال

عنوان ژورنال: Economies

سال: 2023

ISSN: ['2227-7099']

DOI: https://doi.org/10.3390/economies11050147