Index

The Impacts of Monetary Policy in the 21st Century: Perspectives from Emerging Economies

ISBN: 978-1-78973-320-4, eISBN: 978-1-78973-319-8

Publication date: 2 September 2019

This content is currently only available as a PDF

Citation

(2019), "Index", Das, R.C. (Ed.) The Impacts of Monetary Policy in the 21st Century: Perspectives from Emerging Economies, Emerald Publishing Limited, Bingley, pp. 375-390. https://doi.org/10.1108/978-1-78973-319-820191001

Publisher

:

Emerald Publishing Limited

Copyright © 2019 Emerald Publishing Limited


INDEX

Index

Note: Page numbers followed by “n” with numbers indicate footnotes.

Accreditation
, 141

Accredited Loan Providers
, 171

Acontractionary monetary policy
, 8

Actual inflation rate
, 19, 245

African stock markets
, 75–76, 81

Aggregate supply linkage
, 51

Akaike information criterion (AIC)
, 52, 229, 246, 280

All Share Index (ASI)
, 50–51

Annual population growth rate
, 148

ANOVA
, 356–358

AR Root table
, 229

Argentina Great Depression (1998–2002)
, 111

Asian economy

developing economies
, 124–125

globalization and inflation in
, 123–124

Asian financial crisis (1997)
, 111–112, 350–351

Asset prices
, 47, 114

booms and bursts
, 177–178

bubbles
, 51

effects
, 49

impact and credit burst
, 178

speculative bubbles in
, 48

Asset-based reserve management system
, 267

Assisted reproductive treatment (ART)
, 135

Augmented Dickey Fuller test (ADF test)
, 99, 150, 177, 226, 246, 268, 280, 312, 342–343

panel unit root tests
, 125

unit root test
, 295

Autocorrelation
, 267

coefficient
, 125

Autoregressive distributed lag (ARDL)
, 92, 98

Axis bank
, 203, 303–305

Balance of payment (BOP)
, 350–351

Balance sheet channel
, 323–325

Bank borrowing to total assets (BKDEBT)
, 327

Bank Mitra
, 172

Bank of Japan (BOJ)
, 265

Bank-lending channel
, 323–325

Bank(ing)

activity in country
, 70

bank-based systems
, 326

customers
, 66, 71

low interest rates affecting bank depositors
, 68–70

profitability
, 299

sector
, 66, 253

size
, 66

Banking Commission (1972)
, 170

Bankruptcies
, 114

Barclays
, 367

Barro–Gordon model
, 212

Base line model
, 19–26

Base rate system
, 299, 301

Baseline theoretical model
, 18

Bazaar bill market
, 165

Benchmark prime lending rate (BPLR)
, 301

Bharatiya Mahila Bank
, 69–70

Bivariate non-stationary model
, 269

Bivariate regressions
, 246

Bivariate VAR models
, 280

“Black economy”
, 294

Black money
, 223

Boom–bust cycles
, 47–48

Borrowers
, 166–167

Bradford and Bingley Building Society
, 367

Bretton Woods system (1971)
, 110

Breusch and Pagan Lagrangian multiplier test
, 257

Breusche–Pagan test
, 150

Broad credit channel (see also Balance sheet channel)

Brownian motion
, 79

BSE Sensex
, 280–282

Bubbles, asset price booms
, 177–178

Business correspondent (BC)
, 166

Calibrating sectorial analysis
, 77

Canada

financial and credit regulatory landscape in
, 365

insurance regulations and credit insurance landscape in
, 366

Post-GFC 2008 scenario in
, 366

Canara bank
, 305

Capital accounts
, 147

Capital flows
, 282

Capital markets
, 324

effects of monetary policy
, 4

interest rate
, 8

literature review
, 5–7

Captive segment
, 165

Cash crunch initiative
, 224, 226

Cash reserve ratio (CRR)
, 90, 295, 301–302, 356

“Cash wash” initiative
, 224

Cashless economy
, 224

CDRSCBs
, 295

Cell phone messaging technology
, 172

Central Bank of Nigeria (CBN)
, 89

Statistical Bulletin
, 93

Central Bank of Nigeria Statistical Bulletin
, 52

Central bankers
, 337

Central banks
, 3, 17, 48–49, 213

monetary policies
, 114

Chi-square test
, 137

China, India and South East Asian (ASEAN)
, 121

Cholesky graphs
, 52, 57

CIS countries
, 266

Classical monetary policy
, 213

Classification matrix
, 141

Clinical Establishment Act (CE Act)
, 133

Co-integration

equation
, 317

method
, 267–268

Coefficient of variance (CoV)
, 80

“Collateral damage”
, 48

Commercial Banks
, 65, 197

data source and research methodology
, 255–257

empirical analysis
, 257–259

objective of study
, 255

review of literature
, 253–255

Commercial institution
, 253

Committee on Global Financial System (CGFS)
, 276

Commodity prices
, 122

Confusion matrix
, 141

Consumer Financial Protection Bureau
, 369

Consumer price index (CPI)
, 124, 292, 341, 352

inflation
, 69

Contested segment
, 165

Contractionary policy
, 349

Control variables
, 331

Corporate financial structure
, 323

Correlation coefficient
, 177, 330

Correlation matrix
, 330

Creative destruction process
, 148

Credit
, 164

booms and bursts
, 178

dissemination to SHG
, 315–319

market imperfections
, 267

policies of central banks
, 66

rationing
, 352

risk
, 359

transactions
, 161

view
, 323–325

Credit flow
, 313

inter-regional differences in
, 318–319

Credit insurance
, 359

in Canada
, 366

data and methodology
, 363

discussions over regulatory landscape of credit financing and insurance covers
, 363–369

in France
, 368

G7 economies’ trade credit insurance market during GFC 2008
, 361

in Germany
, 366–367

in Italy
, 365

in Japan
, 364

literature review
, 362–363

monetary policy of G7 economies and output loss during GFC 2008
, 360

theoretical framework and hypothesis development
, 363

in UK
, 367

in US
, 369

world’s trade credit insurance market during GFC 2008
, 360

Credit–deposit ratio
, 295–296

Credit–deposit ratio of scheduled commercial banks (CDRCBs)
, 291

Crisis period
, 195

Johensan cointegration
, 193

period closing descriptive statistics
, 189

pre, and post period correlation between Sensex and companies’ return
, 191

Criticism
, 165

Cross country evidences
, 162–165

Cross-border liquidity
, 277

Cross-country data analysis
, 36

Customer service point
, 172

Data envelopment analysis (DEA)
, 198–199

Data generating process (DGP)
, 76

Davies problem
, 79

Debt-management considerations
, 340

Decision-making

process
, 134

units
, 198–199

Decoupling theory
, 356

Demand Following Approach
, 148

Demographic pressures
, 67

Demonetization in India
, 133, 137, 139, 223

AR root table for models under consideration
, 235

augmented Dickey Fuller test statistics
, 234

black economy
, 223–224

data and econometric model
, 226

database
, 226

empirical findings and discussion
, 229

estimation strategy
, 227–229

Granger causality
, 229–230, 237–239

impulse response function
, 230–231

lag length selection for models
, 234

macroeconomic and microeconomic theoretical sketch
, 225–226

mitigating problems of
, 294–295

model specification results
, 234

objective of study
, 225

result of VAR estimates
, 235–236

review of literature
, 224

stability analysis for VAR system
, 229

stationarity of variables
, 226

variables definition
, 233–234

Dependent variable
, 136–137

Descriptive statistics
, 336

crisis period closing
, 189

of explanatory variables
, 137

post-crisis period closing
, 190

pre-period closing
, 188

Development aid

effectiveness of
, 35

negative effect
, 43

Digital India
, 224

Directors’ and Officers’ insurance (D&O)
, 369

Discontinuous process
, 148

Discount window operations (DWO)
, 90

Discretionary monetary policy
, 214

Discriminant analysis
, 136

Discriminant function
, 141

DMUs
, 198–200

Dodd-Frank Act
, 369

Domestic aggregate demand
, 227

Domestic agricultural prices
, 123

Domestic demand (DMD)
, 124

Dominant monetary regime
, 213

Dow Jon Industrial Average (DIJA)
, 176, 184

Drug rehabilitation
, 135

Dumitrescu Hurlin panel causality

analysis
, 9–10, 12

test
, 4

Dynamic influence of globalization on inflation in developing Asia
, 124–126

Dynamic panel regression model
, 125

Dynamic process
, 148

E7 economies, application on
, 9–10

Early warning indicators (EWIs)
, 278

ECM-autoregressive distributed lag model (ECM–ARDL model)
, 342, 344

Econometric model
, 226–229

Economic

crisis
, 289

development
, 148

growth
, 71, 175–176, 212, 241–242

policy
, 211

reforms
, 300

sectors
, 198

theory
, 47

Efficiency change (EFFCH)
, 200

Efficient market hypothesis (EMH)
, 75–76

Endogenous variables
, 153

Engle–Granger method
, 268

Enterprise bankruptcies
, 110–111

Error correction (EC)
, 151

Error correction model (ECM)
, 48, 98, 267

Errors and Omissions insurance
, 369

European Central Bank (ECB)
, 265, 368

European crisis
, 110

European economy
, 176

European financial stabilization mechanism
, 112

Excessive credit rationing
, 167

Exchange rate
, 109, 243, 342

stability
, 219

Expansionary monetary policy
, 349

Expected inflation

over life of asset
, 66

rate
, 19

Expected interest rate on real interest rate in short term
, 66

Explanatory variables
, 327

Exponential smooth transition autoregressive process (ESTAR)
, 76, 78

“Export-led mercantilist” model
, 367

F-test
, 256

Fear of floating
, 338

Federal Reserve policy
, 243

Federal Reserve System (FED)
, 265

Federal Reserve’s Open Market Committee (FOMC)
, 244

Fiat money
, 213

Financial and credit regulatory landscape

in Canada
, 365

in France
, 367–368

in Germany
, 366

in Italy
, 364–365

in Japan
, 363–364

in UK
, 367

in US
, 368–369

Financial development
, 147–148, 151

data
, 150

and growth
, 157

Johansen cointegration test results
, 153

methodology
, 150–152

objective
, 149

results and discussion
, 152

unit roots test results
, 152

VAR for USA and China
, 154

VAR granger causality test results for USA and China
, 155–156

VAR stability test for countries
, 160

Financial markets
, 110–111, 324

crisis
, 290

Financial sector
, 148, 253

Financial secor reforms
, 66, 66, 299

Financial/finance

accelerator
, 51

assets and institutions
, 175

capital
, 289

crisis
, 66, 66, 66, 267

development
, 148

environment
, 340

excluded borrowers
, 166

factors
, 276

finance–growth relationship
, 148–149

imbalances
, 49

inclusion
, 66, 314

institutions
, 66, 147

intermediaries
, 277

intermediation approach
, 201

investors
, 112

liberalization policy
, 164, 170–171

repression models
, 164–165

rescue plans
, 114

served borrowers
, 166

stability
, 66, 277

system
, 66, 341

turmoil
, 213

Financing behavior
, 329

Firm-specific characteristics
, 329

Fiscal Responsibility and Budget Management Act (FRBM Act)
, 338, 340

Fisher Index
, 199–200

Five Year Plan (11th)
, 314

Fixed assets
, 331

Fixed effects

dynamic panel models
, 125

estimator
, 330

models
, 125–126

Fixed exchange rates
, 92, 341

Flexible monetary targeting system
, 212

Flexible price level targeting
, 92

Foreign currency
, 147

Foreign direct investment (FDI)
, 123, 276

Foreign investors
, 276

Foreign prices
, 243

Formal credit market linkage
, 162–165

Formal financial institutions
, 161

Formal financial service providers
, 166

Formal sector
, 161

Forward-looking monetary policy rule
, 18

Fragmented duopoly credit market and implications on monetary policy
, 165–169

France

financial and credit regulatory landscape in
, 367–368

insurance regulations and credit insurance landscape in
, 368

post-GFC 2008 scenario in
, 368

“FSB Principles”
, 366

Funds
, 161

fund-based operating performance
, 198

politics in India
, 65

G7 economies

discussions over regulatory landscape of credit financing and insurance covers in
, 363–369

monetary policy and output loss during GFC 2008
, 360

trade credit insurance market during GFC 2008
, 361

GARCH (1,1) unit root test
, 79, 81, 83

GARCH methodology
, 8

Generalized method of moments approach (GMM approach)
, 124–125, 127

German insurance industry
, 366

Germany

financial and credit regulatory landscape in
, 366

insurance regulations and credit insurance landscape in
, 366–367

post-GFC 2008 scenario in
, 367

“Gesell tax”
, 71–72

Global crisis period
, 277–278

Global cross-border credit
, 280, 282

Global economic crisis
, 111, 289

Argentina (1998–2002)
, 111

Asian Crisis (1997)
, 112

Greece (2009)
, 112

Ireland (2008–2011)
, 112

Portugal (2010–2014)
, 112

Russian Federation
, 111

Spain (2008–2015)
, 111

United State of America (2009–2010)
, 111

Global economy
, 111, 113, 122

Global environment, monetary policy in
, 338–339

Global financial crisis (GFC)
, 110, 112, 175, 275, 290, 324, 354–357, 197, 213

crisis period
, 195

crisis period closing descriptive statistics
, 189

database and methodology
, 176–177

empirical findings
, 179–185

G7 economies’ trade credit insurance market during
, 361

genesis
, 177–178

impact on foreign participation and gross premium growth rate
, 362

India
, 178–179

monetary policy of G7 economies and output loss during
, 360

monetary policy phases and targets around
, 291–293

post period
, 196

post-crisis period closing descriptive statistics
, 190

pre, crisis, and post period correlation between Sensex and companies’ return
, 191

pre, crisis, and post-period Johensan cointegration
, 193

pre period
, 194

pre-period closing descriptive statistics
, 188

pre-period stationarity test result
, 192

world’s trade credit insurance market during
, 360

Global financial crisis
, 177–178

Global financial markets
, 113–114

Global financial system
, 115

Global food prices
, 124

Global inflation rates
, 123

Global liquidity
, 275

central bankers
, 275–276

concepts, measurement, and effects
, 276–278

effect on BSE Sensex
, 281

global liquidity and Indian Stock Market
, 278–280

results
, 280–282

trends in growth of US cross-border credit and BSE
, 287

trends in stock of global credit and BSE
, 285–286

Global market
, 133

Global monetary aggregates
, 278

Global output gap
, 123

Global private liquidity
, 277

Global recession effect
, 176

Global trade
, 114–115, 121

reform
, 115

Globalism
, 110–111

Globalization
, 121, 147, 265

data and methodology
, 124

dynamic influence
, 124–126

empirical results
, 126–127

globalization-fueled growth alters consumption pattern
, 121–122

of monetary policy
, 337–339

network
, 147

review of literature
, 122–123

scenario of globalization and inflation in Asian economy
, 123–124

Globalized economy
, 265

“Good policy” variable
, 36

Governance dummy variables
, 331, 333

Government fiscal policies
, 115

Granger causality
, 229–230, 245

among variables indifferent groups
, 237–239

test
, 269

Granger causality method
, 157

Granger representation theorem
, 98

Great Depression
, 214

“Great inflation” (1970s)
, 214

Great Recession
, 112

Greece crisis (2009)
, 112

Gross domestic product (GDP)
, 28, 111, 121, 224, 266, 292, 311, 342

growth rate
, 175

growth rate in India
, 355

per capita
, 37–38, 148

Gross fixed capital formation
, 148–149

index
, 39

Gross value added (GVA)
, 224

Group ADF-Statistic test
, 9

Group PP-Statistic test
, 9

Group rho-Statistic test
, 9

Growth of per capita income (GRTH)
, 151

Growth rate
, 147

data
, 150

Johansen cointegration test results
, 153

methodology
, 150–152

objective
, 149

results and discussion
, 152

unit roots test results
, 152

VAR for USA and China
, 154

VAR granger causality test results for USA and China
, 155–156

VAR stability test for countries
, 160

Growth-oriented adjustment programmers
, 110

grw_gdp variable
, 233

grw_gfce variable
, 233

grw_gfcf variable
, 233

grw_pfce variable
, 233

Halifax Bank of Scotland (HBOS)
, 367

Hannan-Quinn information criterion
, 52, 280

Harmonization of Bank and Security Related Regulations
, 366

Hausman chi-square test
, 257

Hausman test
, 256

HDFC bank
, 302

Health Tourism
, 133

Healthcare sector
, 184

Heteroskedasticity
, 50

test
, 157

Hicksian IS–LM framework
, 93

Histogram-normality test
, 157

Hodrick–Prescott filter methodology
, 28, 312, 318

Horizontal interlinkage
, 161

Hospital sector in India
, 133

Hospital types
, 134

HSBC
, 367

Hyperinflation
, 124

IBM SPSS V.23.0, statistical analysis with
, 303

Im, Pesaran, and Shin panel unit root tests (IPS panel unit root tests)
, 125

Implicit interest rate
, 167

Impossible trinity
, 294, 341

Impulse response function
, 52–53, 230–231

Independence monetary policy
, 341

Independent variables
, 40, 136–137, 139–140

India (see also Demonetization in India; Monetary policy in India)
, 178–179

global liquidity and Indian stock market
, 278–280

Indian banking sector
, 198

Indian financial sector
, 290

Indian rural economy
, 313

long-term risk-free interest rates in
, 67

Indian Central Banking Enquiry Committee (1931)
, 169

Indian commercial banking industry
, 199

financial intermediation approach
, 201

literature review
, 198

Malmquist index summary of annual means, time series results
, 201–208

methodology
, 198–200

results and discussion
, 200

service oriented production approach
, 202

Indian economy
, 161, 178

formal and informal credit market linkages
, 162–165

fragmented duopoly credit market and implications
, 165–169

rural credit policy approaches toward establishing linkages
, 169–172

Indian monetary policy (see Monetary policy in India)

Individual capital assessment
, 367

Inflation
, 121, 212, 233, 292

in developing Asia
, 121–127

gap over time
, 24

inflation–output dynamics
, 26–28

multiple regression analysis
, 356–357

premium
, 66

threshold level of
, 218

Inflation rate (Inf)
, 91, 122, 268

dynamics and change in policy regime
, 30

Inflation targeting (IT)
, 92, 212, 291

Inflation targeting monetary policy (see also Monetary policy in India)

base line model
, 19–26

empirical analysis
, 28–31

framework
, 17

inflation rate dynamics and change in policy regime
, 30

inflation–output dynamics
, 26–28

objective of study
, 19

review of literature
, 18–19

supply shock
, 26–28

unit root and order of integration
, 29

Informal credit market
, 161

linkage
, 162–165

Informal sector
, 161

Information and telecommunication (ICT)
, 80

Information regarding market efficiency
, 253

Instrumental variable panel data estimator
, 330

Insurance (see also Credit insurance)
, 359

Errors and Omissions
, 369

quasi regulatory status of
, 361

signalling
, 359–360

Insurance regulations

in Canada
, 366

in France
, 368

in Germany
, 366–367

in Italy
, 365

in Japan
, 364

in UK
, 367

in US
, 369

Inter-regional differences in credit flow
, 318–319

Interest rates
, 66, 89, 243

on capital markets
, 8

channel
, 324

Interest subvention scheme for SHGs
, 311

Intermediation approach
, 199

International community
, 33

International Monetary Fund (IMF)
, 110, 121

International tourism
, 134–135

Investments and GDP (INV/GDP)
, 38–39

Investors, low interest rates affecting
, 68–70

Ireland crisis (2008–2011)
, 112

Italy

financial and credit regulatory landscape in
, 364–365

insurance regulations and credit insurance landscape in
, 365

post-GFC 2008 scenario in
, 365

Jakarta Commodity index
, 4, 8

Jan Dhan Yojna
, 224

Japan

financial and credit regulatory landscape in
, 363–364

insurance regulations and credit insurance landscape in
, 364

post-GFC 2008 scenario in
, 364

Jarque-Bera test
, 179

Johansen and Juselius test statistics
, 246

Johansen cointegration test
, 153, 179, 247, 316

Kiosk banking technology
, 172

Lagged inflation rate
, 30

Lagrange multiplier test (LM test)
, 255

Lax lending standards
, 112

Least square t-statistics
, 79

“Less cash” concept
, 294

Levin, Lin, and Chu panel unit root tests (LLC panel unit root tests)
, 125

Liability-asset ratio (LAR)
, 291, 295

Liberalization
, 149

Linear models
, 76

Linear regression
, 312

Linearity of unit root tests
, 82

Liquidity
, 276

management
, 66, 340

shock
, 93

Liquidity adjustment facility (LAF)
, 291, 315

Liquidity ratio (LR)
, 51

LnIMPARL variable
, 257

LnLADSTF variable
, 256

LnLLPE variable
, 256

LnLLPNIR variable
, 257

LnLLRGL variable
, 256

LnLLRIL variable
, 257

LnLR variable
, 256

LnNCONIBLLP variable
, 257, 259

LnNIM variable
, 256

LnNLTDB variable
, 256

LnOIAA variable
, 256

LnREP variable
, 257

LnROA variable
, 257

LnROE variable
, 257

Long-term borrowing to total assets (LTDEBT)
, 327

Long-term debt
, 331

Long-term risk-free interest rates in India
, 67

affecting bank depositors and investors
, 68–70

downfall of interest rates
, 67

reasons for
, 67–68

Long-term term debt ratio
, 333

Low interest rates
, 66

review of literature
, 66

m1_grw variable
, 234

m3_grw variable
, 234

Macroeconomic factors
, 276–277

Macroeconomic stability
, 292

Macroprudential financial supervision
, 339

Malmquist index
, 198

combined table of production vis-á-vis intermediation approach
, 204–207

intermediation approach
, 203

private sector banks
, 208

summary of annual means, time series results
, 201

TECHCH
, 202

Malmquist Productivity Index
, 199–200

Marginal cost of fund-based lending rate (MCLR)
, 299

comparison of different banks
, 305

evolution and computation
, 301–302

findings of study
, 302

limitations of study
, 307

methodology
, 300–301

objectives of study
, 300

paired samples statistics
, 309

paired t-test results
, 310

rates of HDFC and Axis bank
, 304

rates of UBI and SBI
, 303

regression results
, 305–307

review of literature
, 299–300

statistical analysis
, 303

Marginal cost of funds
, 301

Marginal standing facility (MSF)
, 244

Market

driven adverse selection problem
, 361

economies
, 109

fragmentation
, 165

frictions
, 76

market-based systems
, 326

market-determined exchange rate system
, 219

Market share dummy (MSDUM)
, 256

Market stabilization scheme (MSS)
, 291

Marshall–Lerner condition
, 147

Maturity transformation
, 277

Maximum likelihood (ML)
, 79

McKinnon one-sided p-value
, 317

Mean paired t-test
, 305

Mean reverting processes
, 75

Media
, 137, 141

news
, 137

Medical tourism
, 133

classification results
, 145

descriptive statistics of explanatory variables
, 137

industry
, 134

literature review
, 134–135

managerial implications
, 142

methodology
, 135

results
, 137–141

sampling
, 135–137

standardized canonical discriminant function coefficients
, 145

study area
, 135

Medicare
, 213

Microeconomic model
, 326

Microfinance
, 171

Microfinance institutions (MFIs)
, 166, 311

“Minimal” model
, 165

Minimum Capital Test
, 366

Mitigating problems of demonetization
, 294–295

Moderately credit rationing
, 167

Modigliani–Miller proposition (MM proposition)
, 323

Monetary authority
, 352

Monetary growth
, 243

Monetary liquidity
, 276

Monetary management
, 341

Monetary policy (see also Inflation targeting monetary policy)
, 3–4, 48, 89, 91, 112, 164, 211–212, 241, 265, 289, 292, 337, 349

analysis results
, 10–12

application on E7 economies
, 9–10

changes in
, 47

changing role of bank rate
, 269

co-integration test
, 270–271

components of crisis
, 112–114

corrective measures
, 114

data of study
, 350

data source
, 268

in developing nations like India
, 350

effect on Nigerian stock market returns
, 50

effects on capital markets
, 4

empirical results and findings
, 343–345

fragmented duopoly credit market and implications on
, 165–169

frequency of changes in monetary instruments
, 348

in global environment
, 338–339

Granger causality test
, 66, 272

IMF
, 110

Indian experience
, 339–341

instruments
, 351–354

key monetary indicators
, 353

literature review
, 4–9, 266–267

literature survey
, 338

methodology
, 268

movements in bank rate
, 270–271

nexus between money supply growth and inflation
, 341–342

objective
, 337–338, 350

recommendations and measures
, 115

results
, 269

on stock market
, 8

tools
, 147

transmission mechanism
, 324–326

trends of global economic crisis
, 111–112

in 21st Century’s World
, 109

unit roots test results
, 272

Monetary Policy Framework Agreement (MPFA)
, 290–291, 293

Monetary policy in India (see also Inflation targeting monetary policy)
, 212–213, 244, 290, 291–293, 311, 354–357

basic analysis
, 330–331

breakdown of sample firms by ownership group and legal form
, 336

challenges in recent times
, 294–295

co-integration results
, 249

data sources
, 327

descriptive statistics
, 336

econometric methodology
, 245–246

economic crisis
, 289–290

empirical analysis
, 295–296

empirical investigation, data, and methodology
, 244–245

enunciation of objectives
, 218

estimated equation results
, 298

estimation results
, 331–333

exchange rate stability
, 219

financial stability
, 219

indicator
, 331

after liberalization to present year
, 350–351

literature survey
, 212–213, 290–291

methodology
, 329–330

modified impossible trinity
, 241–242

objective of study and methodology
, 291

operating framework evolution
, 213–215

policy implications
, 333

reforms in monetary policy
, 211–212

results
, 246–248, 298

review of selected literature
, 242–244

role
, 265–266, 339–341

threshold level of inflation and policy of inflation targeting
, 218

transmission mechanism
, 218–219, 324–326

trends in
, 215–217

variables in study
, 327–329

Monetary policy rate (MPR)
, 50, 52

marginal increase in
, 53

variance decomposition analysis of changes in
, 54

Monetary system
, 109

Monetary targeting
, 92

Monetary transmission
, 65, 267

Money

prices
, 110

stock
, 96

Money supply (MS)
, 92, 104, 124, 243, 268, 342

equation
, 97

growth and inflation
, 341–342

Moneylenders
, 161, 171

Monopoly
, 165

MSCI Emerging Markets Index
, 277

MSCI World
, 277

Multidimension credit channels
, 161

Mundell–Flemming Model
, 294

Myers–Majluf proposition
, 323

Narasimham Committee Report–II
, 198

Narrow credit channel (see also Bank-lending channel)

Narrow credit view (see Bank-lending channel)

Narrow money supply
, 229

National Bureau of Statistics (NBS)
, 91

Annual Abstract of Statistics
, 93

National Rural Livelihood Mission (NRLM)
, 311

Negative interest rates
, 65–66

and bank customers
, 71

future trends
, 71–72

review of literature
, 66

Negative rates
, 70

countries
, 70–71

and economic growth
, 71

rationale behind negative interest rates
, 70

relevance
, 70

Neoliberal coherence
, 110

Neostructuralist models
, 164–165

Net interest margin (NIM)
, 259

New Keynesian model with spending equation
, 51

Nigeria

data and methodology
, 51–52

decomposition of fluctuations
, 53

literature review
, 48–51

model specification
, 51–52

monetary policy and assets prices in
, 47

stock market
, 76

Nigerian Stock Exchange
, 52

“Nixon Shock”
, 109

No credit rationing
, 168

Noise traders
, 76

Non-Bank Financial Corporation (NBFC)
, 351, 355

Non-debt tax shield
, 329

Non-financial firm-level data
, 324

Non-financial manufacturing firms
, 324

“Non-fundamental” factors
, 48

Non-institutional credit agency
, 171

Non-linear relationship
, 148–149

Non-parametric slack-based measure model
, 199

Non-performing asset (NPA)
, 313

Non-performing loans (NPL)
, 294

Nonlinear unit root rest estimates
, 78–79

Nonlinearity

in stock prices
, 76

test
, 81

Nonstationary time series
, 78

North Atlantic Financial Crisis
, 290

Norwegian banking system
, 198

Null hypothesis
, 137, 139, 184

Official Development Assistance (ODA)
, 34

cross-country data analysis
, 36

economic policy
, 37

effectiveness of development aid
, 35

empirical analysis and results
, 37–43

ODA/GDP variable
, 41

OLS estimates model
, 40–41

Oligopoly
, 165

Open capital account
, 341

Open economy IS–LM framework
, 224

Open market operations (OMO)
, 90, 291, 340

Operating approach
, 199

Operating costs
, 301

Optimal lag length
, 52

Optimal monetary policy instruments for Nigeria
, 89, 91

data and methodology
, 93–99

error correction estimates of short-run and long-run ARDL model
, 101

flexible price level targeting
, 92

results
, 99–105

short-run parameters
, 102

Ordinary least square method (OLS method)
, 40–41, 50, 255, 267

Organisation for Economic Cooperation and Development countries
, 123

“Originate and distribute” model
, 112

Output-gap inflation rate
, 30

Own Funds Directive
, 366

Ownership dummy variable
, 333

Ownership group and legal form, breakdown of sample firms by
, 336

Paired sample t-test
, 303

Pan-Asian supply chain
, 121

Panchenkocasulity analysis
, 8

Panel ADF-Statistic test
, 9

Panel PP-Statistic test
, 9

Panel regression model
, 255, 257–258

Panel rho-Statistic test
, 9

Panel unit root tests
, 126

Panel v-Statistic test
, 9

Partial Adjustment Model
, 255

Pedroni panel cointegration test
, 4, 9, 11

People’s Bank of China (PBOC)
, 265

Phase diagram
, 21

Phillip–Peron test (P–P test)
, 99, 177, 184, 268, 342–343

Policy

errors in EMEs
, 338

of inflation targeting
, 218

measure
, 51

Policymakers
, 48, 161, 266, 338

Political decision
, 141

Population pressure
, 72

Portugal crises (2010–2014)
, 112

Post-crisis period
, 196, 213

Johensan cointegration
, 193

post-crisis period closing descriptive statistics
, 190

pre, crisis, and post period correlation between Sensex and companies’ return
, 191

Post-financial sector reforms period
, 197

Post-GFC 2008 scenario

in Canada
, 366

in France
, 368

in Germany
, 367

in Italy
, 365

in Japan
, 364

in UK
, 367

in US
, 369

Power sector, IT sector
, 184

Prais–Winsten regression
, 305

Pre period
, 194

closing descriptive statistics
, 188

crisis, and post period correlation between Sensex and companies’ return
, 191

Johensan cointegration
, 193

stationarity test result
, 192

Price
, 242–243

level expectations
, 90

stability
, 66, 66, 66, 219, 241–243

Prime lending rate (PLR)
, 301

“Priority sector lending” scheme
, 311

“Priority Sector” lending policy
, 313

Private sector

banks
, 302

MFIs
, 314

Production oriented approach
, 199

Productive incoherence
, 110

Profit approach
, 199

Prowess database
, 327

Public private partnership model
, 172

Public sector banks
, 299–300

Public stimulus packages
, 114

Punishment of Organized Crime and Control of Criminal Proceeds (APOCCCP)
, 364

Pure efficiency change (PECH)
, 200–201, 208

Quadratic loss function
, 94

Qualitative tools
, 351–352

Quantitative tools
, 351–352

Quantity Theory of Money
, 214, 242

Quasi regulatory status of insurance
, 361

Random effect models
, 125–126

Random sampling process
, 135

Reaction function of monetary policy
, 52

Real aggregate output
, 19

Real effective exchange rate (REER)
, 245

Real estate sector of US market
, 176

Real GDP
, 28

Real negative deposit rates
, 66

Real-time premium
, 66

Regional dummies
, 39, 43

Regional rural banks (RRBs)
, 313

Regression

analysis
, 66, 66, 319

equation
, 78

model
, 315

Regulations
, 359

Relationship lending channel
, 324–325

Repo rate
, 356

Reserve Bank of India (RBI)
, 65, 162, 197, 225, 241–242, 255, 265, 291, 299, 311, 339, 341, 352, 357

authorization
, 68

co-integration test results
, 317–318

inter-regional differences in credit flow to SHGs
, 318–319

literature review
, 313–314

monetary policy and credit dissemination to SHG
, 315

objectives and methodology
, 312–313

RBI Act
, 293

SHG
, 311–312

structural breaks in credit flow to SHGs
, 315

unit root test results
, 316

Reserve requirement
, 90

Residential mortgage underwriting policy (RMUP)
, 366

Return on equity (ROE)
, 256

Reverse repo rate
, 356

Revised Banking Directive
, 366

Revised Capital Adequacy Directive
, 366

Risk management strategies
, 134–135

Royal Bank of Scotland Group
, 367

Rupee/US dollar exchange rate
, 341

Rural credit policy approaches toward establishing linkages in India
, 169–172

Russian Federation, crisis in
, 111

S&P BSE Sensex
, 177

Savings bank (SB)
, 68

Scale efficiency change (SECH)
, 200

Schwarz information criterion
, 52

Schwarz’s Bayesian information criterion
, 280

Self-help group (SHG)
, 166, 311–312

monetary policy and credit dissemination to
, 315–319

SHG-Bank Linkage Program
, 312, 314–315

structural breaks in credit flow to
, 315

Sensex movement
, 179–180

Serial correlation LM test
, 157

Service oriented production

approach
, 66, 202

vis-á-vis financial intermediation approach
, 197

Service quality
, 300

Sex change procedure
, 135

Short sales
, 76

Short-term borrowing to total assets (STDEBT)
, 327

Short-term debt ratio
, 331, 333

Silver standard
, 109

Smart card with chip
, 172n, 6

Social welfare programs
, 213

Spain crisis (2008–2015)
, 111

Speculative bubbles in asset prices
, 48

Spill-over excess demand
, 161, 166–167

Stability analysis for VAR system
, 229

Standardized canonical discriminant function coefficients
, 145

STATA (statistical software package)
, 301

State Bank of India
, 302

Stationarity of variables
, 226

Stationary time series
, 78, 226

Statistical analysis
, 303

Statutory liquidity ratio (SLR)
, 291, 356

Stem cell therapy
, 135

Stepwise forward regression
, 41–42

Sterilization
, 290

Stock market
, 178

monetary policies on
, 8

transaction
, 152–153

Stock market efficiency
, 75

data and methodology
, 77–79

descriptive statistics
, 80

linearity and univariate nonlinear unit root tests
, 82

literature review
, 76–77

policy implication
, 84

Stock of global credit
, 280

Stock prices
, 47

nonlinearity in
, 76

Strata package
, 255

Stressed asset management
, 294

Structural breaks in credit flow to SHGs
, 315

Structural shift
, 312–313

Structural vector autoregressive model (SVAR model)
, 51–52, 227, 266–267

analysis
, 8

estimates
, 58–59

Subprime crisis
, 176

originating in United States
, 175

Supply

of money stock
, 89

shock
, 26–28

Supply Leading Approach
, 148

Swachh Bharat Abhiyan
, 223

Target inflation rate
, 248

Taylor rule
, 214, 218, 243–248, 289

Technological change (TECHCH)
, 200, 202

Tenor premium
, 301

Theories of monetary policies
, 214–215

Threshold inflation
, 242

Time inconsistency
, 214

Time path of inflation rate
, 22

Time-invariant error term
, 330

Time-varying correlation
, 50

Toda-Yamomoto analysis
, 8

Tornquist Index
, 199–200

Total borrowing to total assets (DEBT)
, 327

Total factor productivity growth
, 198

Trade
, 147

finance
, 362

statistic
, 317

Trade openness (TRO)
, 123, 147, 151

data
, 150

and growth
, 149

Johansen cointegration test results
, 153

methodology
, 150–152

objective
, 149

results and discussion
, 152

unit roots test results
, 152

VAR for USA and China
, 154

VAR granger causality test results for USA and China
, 155–156

VAR stability test for countries
, 160

Transaction cost
, 76

Transformation of equations
, 94

Transmission mechanism
, 218–219

Treasury bill rate (TBR)
, 50

Trilemma of monetary policy
, 341

Two-stage least squares method (2SLS method)
, 50, 330

Two-tailed Pearson’s correlation tests
, 303

unemp variable
, 233

Union Bank
, 68

Unit labor cost
, 243

Unit root

for panel data
, 125

property of DGP
, 77

test
, 79

United Kingdom (UK)

financial and credit regulatory landscape in
, 367

insurance regulations and credit insurance landscape in
, 367

post-GFC 2008 scenario in
, 367

United Nations Conference on Trade and Development (UNCTAD)
, 33

United State (US)

crisis (2009–2010)
, 110–111

cross-border credit
, 280

Federal Reserve
, 66, 113

financial and credit regulatory landscape in
, 368–369

insurance regulations and credit insurance landscape in
, 369

monetary policy
, 289

post-GFC 2008 scenario in
, 369

stock market
, 177

Univariate nonlinear unit root tests
, 82

Value-added approach
, 199

Variable return to scale (VRS)
, 200–201

Variance decomposition
, 60–63

analysis of changes in MPR
, 54

Vector autoregression model (VAR model)
, 150, 280–281, 326

analysis
, 48, 225–226

granger causality test results for USA and China
, 155–156

stability analysis for
, 229

stability test for countries
, 160

for USA and China
, 154

Vector error correction model (VECM)
, 150–151

Vertical interlinkage
, 161

Viz. card technology
, 172

Volatility
, 80

Wald statistics
, 78

Wald tests
, 280

“Walrasian equilibrium” interest rate
, 168

Wealth effects
, 51

Wellness Tourism
, 133

West Bengal CE Bill (2017)
, 134

World Development Indicator (WDI)
, 124

World Input-Output Database (WIOD)
, 123

WTO reform
, 115

Prelims
Section I: Monetary Policy Effects at the Global Perspectives
Chapter 1: Determining the Effects of Monetary Policies on Capital Markets of the Emerging Economies: An Evidence from E7 Countries
Chapter 2: A Theoretical Appraisal of the Inflation–Output Dynamics Under Inflation Targeting Monetary Policy
Chapter 3: Measuring the Effectiveness of Official Development Assistance on the Economic Growth of Developing Countries: A 2009–2013 Analysis
Chapter 4: The Link between Monetary Policy and Assets Prices in Nigeria
Chapter 5: Negative and Low Deposit Rates and Penalty on Savers
Chapter 6: Re-examining Stock Market Efficiency in Nigeria Using Nonlinear Unit Root Tests
Chapter 7: Optimal Monetary Policy Instruments for Nigeria
Chapter 8: Monetary Policies in the 21st Century’s World: Causes, Effects, and Recommendations
Chapter 9: Globalization and Inflation in Developing Asia
Section II: Aspects of Monetary Policy in Emerging Economies with Special Focus on Indian Economy
Chapter 10: Effects of Demonetization, Clinical Establishment Act, and Media News on Medical Tourism: An Exploratory Study in West Bengal
Chapter 11: Interrelationships among Financial Development, Growth Rate, and Trade Openness: Study for USA, China, and India
Chapter 12: Interaction between the Formal and Informal Financial Sectors and its Implications on Monetary Policy: Experiences from Indian Economy
Chapter 13: Global Financial Crisis: A Study of its Impact on Select S&P BSE Sensex Companies in India During 2005–2013
Chapter 14: The Efficiency of Indian Commercial Banking Industry: A Comparison of Service Oriented Production Vis-á-Vis Financial Intermediation Approach
Chapter 15: An Investigation into India’s Move Toward Emerging Contours of New Monetary Policy Framework
Chapter 16: India’s Demonetization, 2016: Microeconomic and Macroeconomic Consequences
Chapter 17: How to Fulfill the Objectives of Control of Money Supply, Growth, and Inflation Targeting?: A Peep into the Emerging Contour of India’s Monetary Policy
Chapter 18: Determinants of Operating Efficiency of Commercial Banks in India: Insights from Panel Regression Model
Chapter 19: Role of Monetary Policy on Generating Output and Price Stability in India: An Investigation
Chapter 20: Global Liquidity – A Review of Concepts, Measurement, and Effect on Asset Prices: An Empirical Analysis of the Impact on the Indian Stock Market
Chapter 21: Role of the Monetary Policy in India During the Pre- and Post-global Crisis Era
Chapter 22: Marginal Cost Based Lending Rate: A Study on the New Regime of Lending Rate Pattern of the Banking Operations in India
Chapter 23: Monetary Policy of RBI and Its Impact on the Financial Inclusion in Rural India
Chapter 24: Monetary Policy and Corporate Performance in India: “Inside the Black Box Thinking”
Chapter 25: Monetary Policy in a Global Economy and the Indian Overall Experience
Chapter 26: Impact of Monetary Policy on Indian Economic Growth and Price Stability in the 21st Century: An Exploratory Study
Chapter 27: Credit Insurance under Different Policy Regimes and Associated Risk of Crisis
Index