Schwarz, Claudia, Karakitsos, Polychronis, Merriman, Niall, and Studener, Werner
Accounting, Economics and Law - A Convivium. March 2015, Vol. 5 Issue 1, p1, 42 p.
Company business management, Monetary policy -- Management, Central banks -- Accounting and auditing, Disclosure statements (Accounting) -- Management, Accounting -- Standards, and Accounting -- Evaluation
Table of contents 1 Summary 2 Introduction 3 Accounting and effective monetary policy 3.1 The link between monetary policy objectives and central banks' financial strength 3.2 The link between accounting [...] This paper analyses how accounting frameworks can affect three important areas of responsibility of many central banks, namely monetary policy, financial stability and banking supervision. The identified effects of accounting rules and accounting information on the activities of a central bank are manifold. First, the effectiveness of monetary policy crucially hinges on the financial independence of a central bank, which can be evidenced, inter alia, by its financial strength. Using a new simulation of the financial results of the European Central Bank (ECB), this paper shows that the reported annual profit and financial buffers of a central bank can be significantly affected by accounting, profit distribution and loss coverage rules. Second, in respect of financial stability, the accounting frameworks applied by commercial banks can not only affect their behaviour, but also that of financial markets. Indeed, there is evidence that accounting frameworks amplified pro-cyclicality during the recent crisis, and thus posed risks to the stability of the financial system. This being so, the accounting frameworks of credit institutions have obvious implications for central banks' analyses with regard to promoting financial stability. Finally, as regards banking supervision, regulatory reporting and key supervisory ratios are based on accounting data. Under the new regulatory framework for banks in the European Union (EU), bank supervisors are highly reliant on accounting data. This means that central banks, in their role as bank supervisors, need to understand the underlying accounting rules and should directly support the development and application of harmonised accounting frameworks. Keywords: accounting standards, financial reporting, central bank balance sheet, financial stability, banking supervision JEL Classification: E58, M41, M48
Company business management, Financial markets -- Management, Financial markets -- Political aspects, Financial risk -- Political aspects, Crisis management -- Political aspects, and Monetary policy -- Management
This study investigates extreme tail risks in financial markets of the euro-candidate countries and their implications for monetary policies. Our empirical tests show the prevalence of extreme risks in the conditional volatility series of selected financial variables, that is, interbank rates, equity market indexes and exchange rates. We argue that excessive instability of key target and instrument variables should be mitigated by monetary policies. Central banks in these countries will be well-advised to use both standard and unorthodox (discretionary) tools of monetary policy while steering their economies out of the financial crisis and through the euro-convergence process. Comparative Economic Studies (2011) 53, 511-534. doi:10.1057/ces.2011.9; published online 1 September 2011 Keywords: monetary policy rules, tail risks, euro-convergence, global financial crisis, market risk JEL Classifications: E44, F31, G15, P34
Lamandini, Marco, Ramos, David, and Solana, Javier
Columbia Journal of European Law. Fall, 2016, Vol. 23 Issue 1, p1
European Union. European Central Bank -- Evaluation, European Union. European Central Bank -- Influence, European Union. European Central Bank -- Powers and duties, Company business management, Monetary policy -- Analysis, and Monetary policy -- Management
International Journal of Emerging Sciences. March, 2012, Vol. 2 Issue 1, p51, 10 p.
Company business management, Inflation (Finance) -- Political aspects, Inflation (Finance) -- Romania, and Monetary policy -- Management
Inflation can be defined as increases in the general price level, both goods and services, under the purchasing power decreases. Inflation is present both at the consumer level and at the macroeconomic level. Inflation has both positive and negative influences on economic growth, the population, but also on businesses. A high inflation slows economic growth, hyperinflation induce recession and at a moderate level, inflation generally beneficial trains. But most times it cause negative effects and that people have made some special control policies and stop the inflationary phenomenon. Due to negative consequences on economic and social body, inflation is a major objective of macroeconomic policy in all market economy countries. Therefore current policies to combat inflation were be designed to halt inflation and at the same time allowing economic growth and limiting unemployment. Inflation targets established for 2008-2010 has been proved correct and efficient. The National Bank must continue his efforts to reduce inflation in a realistic pace. It is necessary to apply direct inflation targeting, to avoid sudden shocks caused by changes in monetary policy stance and currency policy should allow the real exchange rate of the national currency. Keywords: Instability, Target, Costs, Rate, Prices. 1 INTRODUCTION Effects of inflation are largely dependent on the shape and intensity of inflation, on the ability of participants to anticipate economic activities and on the availability and the [...]
International Journal of Emerging Sciences. March, 2012, Vol. 2 Issue 1, p23, 7 p.
Company business management, Employment -- Political aspects, Monetary policy -- Management, and Economic conditions -- Research
Monetary transmission mechanism which is questioning the relationship between macro economic variables and monetary variables has been discussed from past to present. It is generally accepted that contractionary monetary shocks affect total consumption, employment and total output negatively. However, the leading position of countries' properties (socio-economic, political etc.) on to the relationship between real variables and monetary variables, create a debate among economists and ratify to make them precise evidence. The main aim of this paper is to analyze the effectiveness of narrow credit view on employment and output for Turkey. Within this framework, money supply, total loans, employment rates and industrial production index monthly variables are analyzed for the period of 2005-2010 by using VAR (Vector Autoregression) method. The results indicate that changes in money stock (m2) impact on real variables such as employment and output through credit stock. Keywords: Monetary Transmission Mechanism, Employment, Output, Turkey, VAR. 1 INTRODUCTION In general meaning, monetary policy is a tool used by the monetary authority of a country, the central bank, in order to control real economy. In other words, [...]