Dawood, Taufiq Carnegie
Proceedings of AICS - Social Sciences

Published : 2 Documents
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Foreign Interest Rate, Monetary Policy and Bank Credit

Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan Vol 19, No 2 (2018): JEP 2018
Publisher : Muhammadiyah University Press

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Abstract

This paper concluded that domestic credit provided by banks in home country is affected by interest rates from abroad. And its effect on credit depends on the intensity of the foreign shock’s influence towards income in contrast to cost from interest in the balance sheet of banks of the home country. Conversely, a monetary contraction reduces the amount of credit provision by bank, with a delayed response (lag).And both monetary policy of home country and interest rate of abroad gives important effect on the provision of domestic credit. 

RULES ON MONETARY POLICY AND INTERNATIONAL IMPERFECT SUBSTITUTIONS OF ASSETS

E-Mabis: Jurnal Ekonomi Manajemen dan Bisnis Vol 19, No 1 (2018): April
Publisher : Faculty of Economics and Business, Universitas Malikussaleh

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Abstract

This paper revisits and extend discussions which evaluate the impact of different rules on monetary policy. Rules on one which excludes or includes stability of the exchange rate as an objective of monetary policy making, with currency mismatch existence as given, on the fluctuations of major economic variables. In this paper I develop a financial accelerator model with financial intermediary consistent with currency mismatch, and assume imperfect international substitutability of assets. This paper found that the variation of rule of monetary policy considered in the analysis produces variations in the fluctuations of the macroeconomic variable. However the impact of the different monetary policy rules on the stability of the macroeconomic variables is shock dependent.