Debt-financed fiscal stimulus programmes directly stimulate aggregate demand through government expenditure or tax cuts, but their effectiveness is highly dependent on direct crowding out of private sector expenditure, spillover effects to the a higher risk premium interest rates, and interaction between policy monetary policy. Using an open-economy dynamic stochastic general equilibrium model,...

abstract this study uses annual data over the period 2005-2014 and the panel vecm approach to examine financial inclusion and monetary policy effectiveness in africa. the study shows that financial inclusion and monetary policy effectiveness are linked by a set of long-run relationships. policy reaction to the positive financial inclusion shock is not significant. policy reaction to the positiv...

always, financial sector has a central role in development and economic growth. hence the relationship between financial development and economic growth appears to be essential. this article examines the impact of financial development on economic growth, with consider other variables affecting the economic growth, such as ratio of commercial, domestic investment and interest rate. this study e...

considering the importance of the agriculture sector in iran, this study investigated factors affecting economic growth and development of the agriculture sector in iran over the period of 1967-2009 for short term and long term, using ardl model. the results showed that the ratios of public investment expenditure to the gdp for short-term and long term have positive impacts on the economic grow...

In the standard New Keynesian model, monetary policy is often described by an interest rate rule (e.g. a Taylor rule) that moves the interest rate in response to deviations of inflation and some measure of economic activity from target. Nominal interest rates are bound from below by 0 – since money is storable, one would never accept a negative nominal return. How does the behavior of the NK mo...

This paper investigates the wealth effects of consumer price index, interest rate, domestic credit and real economic activity on Amman Stock Exchange performance. Over period 1991–2020 using autoregressive distributed lag (ARDL) bounds test. While rate is a powerful monetary tool to fight inflation recession, it can be detrimental investors. The target variables, index (CPI) (IDR), are both hig...

We solve equilibrium models of lumpy investment wherein establishments face persistent shocks to common and plant-specific productivity. Nonconvex adjustment costs lead plants to pursue generalized (S,s) decision rules with respect to capital; as a result, their individual investments are lumpy. In partial equilibrium, this yields substantial skewness and kurtosis in aggregate investment, thoug...