A number of analysts believe that these financial developments have altered significantly the relationship between Ml growth and the gr’owth of GNP. rendering the narrow monetaiy aggregate less usefi.rl as an intermediate target for monetary policy.’ Others have objected on broader grounds, arguing that these innovations illuminate the problem of simply adding up various financial assets curren...

I study how the general and specific details of a micro founded monetary framework affect the determination of policy when the government has limited commitment. The conduct of policy depends on the interaction between the incentive to smooth distortions intertemporally and a time-consistency problem. In equilibrium, fiscal and monetary policies are distortionary, but long-run policy is not aff...

Concentrating on the period of quantitative easing in Japan, this paper reexamines the correlation between the asymmetry of sectoral relative-price changes and the aggregate inflation rate. This correlation is widely interpreted as evidence that short-run inflation is determined by supply-side factors; however, we study whether, in addition to the inflation rate, monetary environment and aggreg...

This paper examines the question of what kind money will govern 21st century by examining developments which characterise this landscape. On basis a review available literature and evidence, it is clear that certain technological innovations, such as movement towards electronic money, undoubtedly change how we operate. However, conclusion in less sanguine regarding prospects global currency, re...

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 posit...

This study is aimed at examining the long run and short run relationships between both Islamic and conventional financial development with the economic growth in the Bahrain dual financial system. Using quarterly data (2000:1-2010:4) retrieved from Monthly Statistical Bulletin of Central bank of Bahrain (CBB) and International Financial Statistics (IFS) of International Monetary Funds (IMF), th...

This paper examines the causal relationship among composite indicators for real, monetary/financial, social and infrastructure development in Pakistan. This is an effort to provide evidence on the two highly debatable issues, i.e. money-real causality and social-economic causality in a single multivariate framework. We use a large number of variables to construct the composite indicators of dev...