Impact of monetary policy on gdp
159281252
Impact of Monetary Policy on GDP of India
Monetary policy is a measure which is decided by the Apex bank to regulate currency supply and credit control in the Indian economy where as gross domestic product (GDP) is an indicator of growth and development of the economy. Monetary policy and its components i.e. CRR, SLR, BR, RR, RRR and MSF (Marginal Standing Facility) have impact on the inflation, credit supply in market and GDP of the country. The purpose of this study is to examine the impact of various financial components of monetary policy on the GDP, which is an index of economic growth and development of the economy. It has been observed during the study that monetary policy of the nation has positive impact on the GDP by applying the various tools and techniques with the help of Econometrics. In this study, GDP is used as dependent variable while components of monetary policy are used as independent variable to examine the impact.
Om Prakash Agrawal Prateek Bansal
212911006
A Study of Monetary Policy and its impact on GDP Performance (With reference to Indian Economy)
For maintaining stability and growth in the economy, every nation has to maintain good structure of monetary policies for achieving the country's development goal. Monetary policy affected through various scales like money supply, interest rates, and inflation rate according to these indicators monetary policies dynamically changed to maintain price stability and required economic growth rate. GDP Referred to national income of the country which determines the economic growth of the country and it depends upon the Monetary policy, so it is very important function to establish good balance between monetary and GDP of the country. The present paper emphases on the impact of monetary policies on the GDP, for this associated variable also have been studied for proving hypothesis. The duration of the study is from year 2014 15 to 2018 19, descriptive analysis, correlation and regression has been done to conclude remarks, and analyzes the influence of Monetary policy on GDP. Secondary data has been taken from RBI monetary policy reports.
Shobhit Sagar L N Koli
159163599
Monetary Policy Of The State And Its Impact On Gdp Growth
N I Kulikov
58924157
Impact of Monetary Policy on Gross Domestic Product (GDP)
This article explores the impact of monetary policy on gross domestic product (GDP) of the state. There is an immense effect of monetary policy on GDP of the country. In this regard variables have been studied to prove the hypothesis. The data of past 10 years from 2005 to 2014 has been used for driving the result. To determine the relationship between two exist regression and correlation technique has been used. The study proves that money supply, interest rate and inflation greatly affect the GDP. There are various unknown factor that impact on GDP. Now for some years monetary policy of Pakistan is very supportive and promoting the objective of price stability and economic growth and it is achieving its objective by targeting monetary aggregates in accordance with GDP growth and inflation target set by the Government.
Sidra Ayub Faiza Maqbool Shah
212856124
Impact of Monetary Policy on the Economic Growth of a Developing Country: An Empirical Study on Bangladesh Economy
Monetary policy plays a significant role in the economic growth of a developing country like Bangladesh by influencing the cost and availability of credit, inflation control and balance of payment. The current improving GDP growth of Bangladesh is the contribution of different components of monetary policy. This paper aims at identifying the impact of monetary policy on the overall economic development of Bangladesh. The purpose of the study is to develop a cause and effect relationship between the monetary policy and different economic factors that lead to economic growth of Bangladesh. To conduct this research data of last 20 years from 1997 2017 were collected. Primary data from 57 respondents from different commercial banks were collected to conduct this study. Different economic variables that affects a country's GDP such as inflation rate, employment rate, lending rate, borrowing rate, export import growth rate, broad money growth rate, FDI rate in percent of GDP were used for this study. Both descriptive and inferential statistics were used in analyzing the data. Multivariate analysis technique like Exploratory factor analysis using SPSS version 20.0 was performed to identify the factors that influence the overall economic performance of Bangladesh. Multiple regressions were run to identify the relationship between monetary policy and the economic development of Bangladesh. The results show that factors like consumption, investment, government net expenditure and net export significantly affects the GDP growth of Bangladesh. The study also identifies that the monetary policy of Bangladesh has significant impact on these mediating factors. The research brings an important insight regarding the socio economic development of Bangladesh by ensuring proper implication of the monetary policy. If the central bank and policy makers focus on the above significant factors Bangladesh will see more robust economic growth in the near future.
Md Nafizur Rahman Nowshin Nower Raqibul Hasan Tushar Syed Mahdee Abbas Maisha Nanjiba Musa
159122170
The Impact of Monetary Policy on Economic Growth in Cambodia: Bayesian Approach
This research paper aims to study the significance of monetary policy in the contribution to the economic growth of Cambodia. This study employs the data in the period of 2000 2018 consisting in total 19 years. Once the GDP of Cambodia is characterized as the limited dependent variable, the Tobit model is an appropriate model to be used. However, due to the limited data which only consists of 19 observations, this study uses Bayesian inference. The combination between Tobit model and Bayesian inference is known as Bayesian Tobit Model. The Bayesian Tobit Model with Markov chain Monte Carlo simulation uses Gibbs sampling to sample all conditional posterior distributions. The empirical results illustrate that money supply which represents the monetary policy tool is statistically indicated a positive correlation with GDP in Cambodia. Moreover, the inflation rate and exchange also revealed a positive relationship with GDP. The interest rate, on the other hand, is confirmed negatively insignificant with GDP which represents economic growth in Cambodia. Based on statistical results, the National Bank of Cambodia plays a vital role in authorizing the monetary policy in Cambodia.
Journal of Management, Economics, and Industrial Organization
M Kearney Sean
212838151
Impact of Monetary Policy and Fiscal Policy on Economic Growth in Nigeria
Monetary policy and Fiscal policy are Macroeconomic instruments used in regulating the financial operations in an economy towards the economic growth. Vast researches have been undertaken and empirical evidences proved that, both policies have to be efficiently and effectively maintained for a sustainable economic growth. The objective of this study is to establish the relationship between the monetary and fiscal policy with economic growth in Nigeria, and determine the suitable percentage mix of the policies. The study uses Money supply, Tax revenue generated and GDP as element of Monetary, Fiscal and Economic Growth respectively, for the period of 10years, from 2006 2015. Pearson correlation technique was used to establish the relationship between the dependent and independent variables. The analyses revealed that; Money supply made the most significant contribution to prediction of GDP in Nigeria than Tax revenue generated. The results of these findings are however translated to proportion of percentage mix as 87% and 13% for monetary and fiscal policy respectively. Therefore if government increases expenditures, it should also adopt the necessary measures that will necessitate income generation, as well provides governing policies to lower the expense of the income on consumable goods. Key words monetary policy, fiscal policy, economic growth DOI 10.7176/JESD/10 24 16 Publication date: December 31 st 2019
Aliyu Barde Abdullahi Mahmood Omeiza Adeiza
212760237
Analysis of the Impact of China's GDP Data Revision on Monetary Policy from the Perspective of Uncertainty
ABSTRACT Based on the uncertainty brought about by the revision of GDP data, this article calculates the revision effect of GDP data uncertainty from 2000 to 2017 in China, analyzes the implications of GDP revision on output gap estimation, and estimates the effect of this uncertainty on monetary policy. The main results show the following: (1) GDP data revision indeed leads to noticeable uncertainty in the measured GDP and its growth rate in China. (2) The effect of data revision on the output gap shows a downward trend, and the results of the QT filter are most robust among the methods. (3) Controlling the uncertainty of the output gap model to a certain extent, the synchronism and forward looking Taylor rules can describe China's monetary policy behavior, while considering the uncertainty of data, the synchronism Taylor rules perform best. The above conclusions have practical reference and policy implications.
Xueting Yu Yuhan Zhu Guangming Lv
197830674
Impact of Fiscal and Monetary Policy on Economic Growth in Vietnam
Since 1986, after over 30 years of implementation of "Doi Moi" policy, Vietnam has become one of the world's high growth economies. In the 2001 2010 period, the average GDP growth rate was 7.25% From 2010 to 2015, the growth rate was slightly reduced to 5.90% increasing in 2016 to 6.21% and again in 2017 to 6.7% Vietnam's economic growth target for the period of 2016 2020 is 6.5% 7.0% (other goals include economic restructuring, renewal of the current growth model, sustainable development and reduction of the state budget deficit while not exceeding the public debt ceiling of 65% of GDP) The extent of the impact of monetary and fiscal policy therefore plays a vital role in promoting economic growth in Vietnam. This study will assess the role and impact of monetary and fiscal policy on Vietnam's economic growth from 2001 to 2017, drawing policy implications for reference in planning and policy implementation for the Government of Vietnam in the near future.
T H Nguyen Phong T H Ngo Trinh Van Bui V S Mai
219350328
The Impact of US Monetary Policy on Managed Exchange Rates
I study the impact of US monetary policy on managed exchange rates by analyzing the pricing of American Depositary Receipts (ADRs) around FOMC meetings. The significant negative impact of US monetary surprises on abnormal ADR returns for currencies that are managed reflects changes in these currencies' fundamental values due to US monetary policy shocks. In line with currency crises models of interest rate defence like Lahiri Vegh (2007) I find that positive US monetary surprises increase the breakdown probability of currency pegs of countries characterized by low real GDP growth, high fiscal deficits and a weak domestic banking sector.
Ingmar Roevekamp