We consider the problem of financing two productive sectors in an economy through bank loans, when the sectors may experience independent demands for money but when it is desirable for each to maintain an independently determined sequence of prices. An idealized central bank is compared with a collection of commercial banks that generate profits from interest rate spreads and flow those through...

This paper examines the bank lending channel, which considers how monetary authority actions affect the variation of loans. We focus on the BRICS (Brazil, Russia, India, China and South Africa) totalizing 1254 banks from five countries in the period 2000-2012 (totalizing 13 years). The empirical results show that the effect of money supply growth on the growth of loans is non-linear and inverte...

This study aims to analyze the relationship between defense expenditure and growth of economy in Sri Lanka applying annual data during period 1990-2019 by engaging ARDL bounds test Granger causality test. Economic is considered as a dependent variable whereas; expenditure, broad money supply, capital investment exchange rate are independent variables for this study. The findings revealed that s...

This study investigated the factors which contributed to inflation in Bangladesh from 1986 2021. The also explored presence of a long-run relationship among (denoted by Consumer Price Index), GDP, broad money supply, and exchange rate. Johansen cointegration test confirmed no those selected variables Bangladesh. I employed Vector Auto Regression (VAR) method reveal causal them. estimated result...

this article aims to identify what and how factors influence management of supply risk in automotive industry supply chain. based on grounded theory and 13qualitative in-depth interviews with 10 managers in iran's automotive industry supply chain, a theoretical framework is developed to examine antecedents and effective factors of this process. this framework suggests a broad range of fact...

This paper examines the role of the monetary instrument choice for local equilibrium determinacy under sticky prices and different fiscal policy regimes. Corresponding to Benhabib et al.’s (2001) results for interest rate feedback rules, the money growth rate should not rise by more than one for one with inflation when the primary surplus is raised with public debt. Under an exogenous primary s...

I characterize a large family of monetary policies that implement Milton Friedman’s prescription of zero nominal interest rates in a monetary search economy with multiple assets and aggregate uncertainty. This family of optimal policies is defined by two properties: (i) the money supply must be arbitrarily close to zero for an infinite number of dates, and (ii) asymptotically, on average (over ...

Monetary rules matter for the equilibrium rate of employment when the number of price-wage setters is small, even when assuming rational expectations, complete information, central bank precommitment, and absence of nominal rigidities. If the central bank is nonaccommodating, sufficiently large unions, bargaining independently, have an incentive to moderate sectoral money wages, and thereby exp...