Theoretical and Applied Economics
No. 2 / 2017 (611), Summer
An analysis of the effect of monetary policy changes on macroeconomic factors
Jaipuria Institute of Management, Noida, India
Shamima NASRIN
Bangladesh Bank, Dhaka, Bangladesh
Abstract. One important role of the Reserve Bank of India (RBI) or any central bank is to ensure economic stability in the country. For the purpose, the central bank adopts various measures to ensure that the inflation rates, GDP, interest rates, exchange rates, money supply and other target macroeconomic parameters remain under control. It uses reserve ratios like Cash Reserve Ratio and interest rates like Repo rates to control liquidity and inflation in the country. The effectiveness of such policies and monetary rates in ensuring economic stability needs to be verified and tested. The decision maker needs to understand the effect of these changes on the affected (targeted) variable. This research is an attempt to test and verify the effectiveness of the changes in monetary and policy rates on the desired critical variables. What is the effect and how much is the effect? Can these effects help in better policy making? These are some of the questions aimed to be addressed in the research. The research uses basic statistical tools such as correlation, regression and advance statistical tools such co-integration and Vector Auto Regression to study the variables and draws conclusion based on the results. The data used is from Indian economy and the time period used is 2011-2014. Monthly and quarterly data has been used as required. The research is aimed to provide information to decision makers in formulating policies and to contribute to the existing literature on the subject.
Contents
The role of fiscal policy in the financial crisis. Challenges and solutions
Using the input-output model in macroeconomic analysis and forecasting studies
Panel causality analysis between exchange rates and stock indexes for fragile five
Modeling of stock indices with HMM-SV models
The impact of private sector credit on income inequalities in European Union (15 member states)
Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis
The main correlations between the monetary-banking indicators
Impact of governance on budget deficit in developing countries
Private equity market developments in central and Eastern Europe
Public-Private Partnerships for clean energy investment in developing and emerging economies: Allocating risks and sharing rewards
Science is measurement, yet not all sciences can be evaluated using the same measurement
The effects of real exchange rates and income on the trade balance: A second generation panel data analysis for transition economies and Turkey
Child policy changes and estimation of income distribution effects
An enquiry into the dynamics of real oil prices: A state space approach
Wage inequalities in Romania under successive adjustments in minimum wage levels
An examination of bilateral J-curve: Evidence from Turkey and her 20 major trading partners
Do military expenditures converge in NATO countries? Linear and nonlinear unit root test evidence
Impact of GDP and tax revenue on health care financing: An empirical investigation from Indian states
The relation between foreign direct investments and some economic indicators. The case of Romanian economy
Economic freedom and foreign direct investment in South Asian countries
New software for identification and evaluation of environmental and waste management in the companies
An analysis of the effect of monetary policy changes on macroeconomic factors
The costs of Brexit for UK economy