Journal of Economics Bibliography
Not a member yet
217 research outputs found
Sort by
Unified Money Circulation Equation and an Analogical Explanation for Its Solvability
No full textAbstract. The equation of exchange is well-known as a quantitative expression of money circulation, but it has a defect in that the relation between the velocity of money and the situation of economic agents is not clear. This paper attempts to found the velocity which pays attention to movement of money. For that purpose, this paper shows a money circulation equation in which agents of the whole society are unified. If this equation has a unique solution, the velocity of money is reduced to the expenditure rate of the whole society. Thereby, the defect of the equation of exchange can be remedied. Our attempt can be interpreted as connecting the velocity of money with the multiplier analysis. Success or failure of the trial depends on its solvability. This solvability problem of the money circulation equation is closely related to the missing problems of the monetary budget constraint. This paper also attempts to explain the missing problems in the case of the budget constraint of the whole society. This paper explains that a time irreversible disposal solves those problems by using an analogy.Keywords. Equation of exchange, Money circulation, Budget constraint.JEL. C20, E10, E40
Evaluating Current Logistics Facilities with Analytical Hyepapchy Process (AHP) and Geographical Information Systems (GIS)
No full textAbstract. Logistics facilities which have important position within logistics supply chain are established in order for the demanded goods to be supplied on time, with the minimum cost and in the shortest duration. Given the cost and time factors, the location of such facilities should be selected very carefully and effectively. Especially, a quick settlement in logistics manner is experienced depending on transportation network, work force, proximity to market and raw materials of the times following the industrialization period after establishing the Republic. Nowadays, with the development of transportation and the communication systems as well as technology transportation costs decreased and the facilities and possibilities transport from one place to another increased. For this reason, like the private sector the public institutions and organizations began to shrink, shut down or merge their facilities. This situation was brought to reconsider the existing facilities. The purpose of this study is to evaluate and analyze current six logistics facilities with Analytical Hierarchy Process (AHP) and Geographical Information Systems (GIS). Analyses results will contribute the decision of revising logistics facilities for which are planned to be restructured. Moreover, suggestions are presented for proper ones to continue operating, for improper ones to get closed or transferred to another place.Keywords. Analytic Hierarchy Process, (AHP), Geographic Information Systems, (GIS), Facility Site Selection.JEL. J61, L86, Q55
Financial Stress Indicator Variables and Monetary Policy in South Africa
No full textAbstract. This paper analyses the relationship between financial stress indicator variables and monetary policy in South Africa with emphasis on how robust these variables are related to the monetary policy interest rate. The financial stress indicator variables comprise a set of variables from the main segments of the South African financial market that include the bond and equity securities markets, the commodity market and the exchange rate market.The empirical results show that the set of financial stress indicator variables from the bond and equity securities markets as well as those from credit markets and property markets are robustly associated with the monetary policy interest rate, while the set of financial stress indicator variables from commodity markets and the exchange rate market are weakly associated with the monetary policy interest rate.Keywords. Financial stressindicator variables, Monetary policy.JEL. C32, C51, E52, E61, G01, G10
Effective Cost of Borrowing from Microfinance Institutions
No full textAbstract. It has been observed lately that the dependence on moneylenders for borrowing needs of poor borrowers remained stable despite the presence of MFIs, particularly in developing economies. This is surprising given the fact that MFIs charge relatively lower interest rate as compared to moneylenders. The paper explains this trend by arguing that the effective cost of borrowing from MFI is higher relative to the effective cost of borrowing from moneylender. It is due to the additional burden incurred in the form of transaction costs in case of MFI borrowing. Simulation results also support this phenomenon.Keywords. Microfinance, Group lending, Informal finance, Transaction cost, Effective cost.JEL. G21, O16, O17
South African Exchange Rate After 2000s: An Econometric Investigation
No full textAbstract. This paper is an econometric investigation, an analysis on the difficulty of modeling the South African exchange rate. The aim of the paper is to examine the nature of the existing relationship between the real exchange rate of the Rand, real prices of gold, platinum and the real interest rate differential through different empirical models, and this over the period going from January 2000 to September 2014. Our analysis shows that, over the same period, with different empirical methods, the variables used can be the determinants ofthe real value of the South African Rand, but at different horizons. To achieve our goals, longrun (Engle & Granger, 1987; Johansen, 1988) and short run (VAR process; Sims, 1980) analysis have been performed. We come to the conclusion that, the determinants of the Rand change according to the methods used and these do not therefore allow us to have robustresults. The long run analysis performed by Engle and Granger approach result to a lack of long run relationship among our variables. To have a robust idea on the lack of cointegrating relationship, we have performed another long run analysis: the vector error correction model (VECM approach) of Johansen which results on the existence of one cointegrating relation among real value of the Rand and their determinants. However, because of the lack of long run relationship resulting of the Engle & Granger approach, we have performed a short run analysis with the vector autoregressive process. We find that only the real platinum price in our study is a short term determinant of the real value of the Rand. The real impact is effective only at the end of the first quarter with a real appreciation of the Rand. The main surprise is the absence of impact of real price of gold shock on the real value of the Rand. Analyze the South African exchange rate through one empirical method/model to find their determinants can bebiased.Keywords. Exchange rate, Raw materials, Vector Auto-Regressive, Co-integration.JEL. C13, C58, D53, D81, G01, G02, G15, H63
Parthasarathi Shome, The G20 Development Agenda: An Indian Perspective
No full textAbstract. In the aftermath of the global economic crisis during 2008-09, the group of 20 nations (G20) came together to implement a series of macro-economic and financial sector reforms to bring the world economy back on the path of stability. India, given its growing GDP and increased external sector orientation, became a crucial part of the group. Once the recovery process started since 2010, G20 moved on to adopt a series of development agendas, including provisions on food security, infrastructural augmentation, energy and environmental sustainability and so on. Given India’s unique position that allows coexistence of economic growth with livelihood challenges and considerations over environmental degradation, the new G20 development agendasmay significantly influence the country’sfuture policy choice and growth path. In this context, the recent volume edited by Shome is a well-structured and timely contribution to the literature, which analyses the G20 development agendas from an Indian perspective.Keywords. Economic development, Macroeconomic analysis.JEL. F63, O10, O20, O50
Taxpayers Subsidise Private Money Creation
No full textAbstract. Publicly created money, i.e. base money, costs much less to produce than privately created money because amongst other things private banks have to check up on the credit worthiness of borrowers before supplying them with money. In contrast governments do not need to do those checks when creating and spending base money into the economy. It might be claimed that the cost of private money creation is the cost of organising loans and hence that the cost of private money creation as such is not particularly high. That claim does not stand inspection. Despite the high cost of private money, it nevertheless manages to drive public money to near extinction (except in the current very low interest scenario). Reason is that private banks can create and lend out money at below the going rate of interest because they are not burdened with one of the main costs normally involved in lending, namely earning money and abstaining from consumption (so that borrowers can consume.) When an economy is at capacity, the result of that extra lending is inflationary, so government has to withdraw base money from the economy, i.e. rob taxpayers, in order to counteract the inflation, for example by cutting the deficit / raising the surplus or by raising interest rates. In short, private money printing is subsidised by taxpayers, and subsidies reduce GDP, unless there is a good reason for a subsidy. The net result of letting private money displace base money is an artificially low rate of interest and an artificially high level of debt, plus GDP is reduced. Thus GDP would be increased if privately issued money was banned, though its complete elimination is not necessary.Keywords. Money and interst rates, Money policy, Banking system, Government policy.JEL. E40, E50, G21, G28
Innovation, Cooperation Network and Economic Growth, a Tunisian Case
No full textAbstract. In this paper we investigate postulations on the relation between innovation activities andeconomic factors of growth. The old explication of innovation are limited to the notion of technological progress. Generally, technological progress deals about the number of patent and its impact on nation growth and firm modernity, in this case innovationsactions are considered as an improvements activities. However, there is a new way to analyze innovation, itdoesn’t limit itself to the number of patents or a new technological products but it also deals with improvements in production process, organization, finance and distribution. Thisstudy analyze the determinant of innovations on a macroeconomic and microeconomic level. In this paper, we see the important role of innovation system, government rolecooperation network and human resources capacity in improving Tunisian firmgrowth.Keywords. Innovation, Economic growth, Patent, Open innovation, Cooperation.JEL. O11, O12, O14, O31, O33, O44, O55
Oil Prices and REER with Impact of Regime Dummies
No full textAbstract. This study is basically explores the long run relationship between REER, IRD and Oil Prices, with the use of dummies and interaction terms for exchange rate regimes in Pakistan. By using Hatemi – J residual based cointegration test. Test has modified by including level shift, level shift with trend and regime shift. The data span is from the period of 1982m01-2014m03 in case of Pakistan. Also negative relationship betweenIRD and REER is due to indirect relationship between inflation and nominal interest rate that leads to fall in exchange rate. Long run relationship has concluded from cointegration test between variables.Keywords.Hatemi-J residual based cointegration, Cointegration test, Level Shift, Regime Shift and Interaction terms.JEL. N70, O13, P28