Showing papers in "PSL Quarterly Review in 1999"
TL;DR: This article examined the relationship between central bank independence and accountability by using an indicator for central bank accountability based on the laws of 16 central banks and identified three distinct features, namely, the explicit definition and ranking of the objectives of monetary policy, the transparency of the actual monetary policy and the final responsibility to monetary policy.
Abstract: The work examines the relationship between central bank independence and accountability. The authors do this by using an indicator for central bank accountability based on the laws of 16 central banks. Central bank accountability is identified as having three distinct features, namely, the explicit definition and ranking of the objectives of monetary policy, the transparency of the actual monetary policy, and the final responsibility to monetary policy. JEL Codes: E58
39 citations
TL;DR: The labor markets of developing countries are analyzed in this paper, focusing on the importance of investment and flexibility in the labor market. But they do not consider the economic aspects of the labor markets in developing countries.
Abstract: The labor markets of developing countries are analysed, focusing on the importance of investment and flexibility. JEL Codes: E24, J21 Keywords: Research, Economic aspects, Economic research, Developing countries, Labor market
30 citations
TL;DR: In this paper, the authors provide an economic analysis of the monetary transmission mechanism in Europe and discuss the relative importance of a bank lending and balance sheet channel by assessing impulse response functions from a vector error correction model.
Abstract: The work provides an economic analysis of the monetary transmission mechanism in Europe. The author reviews the literature on the money and credit view before describing cross-country differences in credit channel indicators and examining the existence of credit channels by distinguishing between households and firms. The relative importance of a bank lending and balance sheet channel is discussed by assessing impulse response functions from a vector error correction model. JEL Codes: E51
30 citations
12 citations
TL;DR: The authors examines the origin and development of Harrod's notion of neutrality, illustrating how it was characterised, what conceptual framework it presupposed, and what function it played within his dynamic economics.
Abstract: From the 1930s to the 1970s many economists debated the classification of technological progress into neutral, labour- or capital-saving inventions One of them was RF Harrod, who defined neutral inventions as those in which the capital-output ratio remains unaffected at a certain rate of interest The present work examines the origin and development of Harrod’s notion of neutrality, illustrating how it was characterised, what conceptual framework it presupposed, and what function it played within his dynamic economics JEL Codes: O30 Keywords: Beliefs, opinions and attitudes, Economists, Production functions (Economics), Harrod, RF
10 citations
TL;DR: In this paper, the authors follow a prominent line of reasoning to abandon the conventional AD curve altogether and replace it with a construct which seeks to remedy the inconsistency of the assumption of profit maximisation constraining firms through rising marginal costs of the "supply side".
Abstract: Today many textbooks use the aggregate demand/aggregate supply analysis to convey the basics of Keynesian analysis of aggregate demand in conjunction with the profit maximisation postulate as characterising the aggregate supply side. However, this construction suffers from logical inconsistency, as the assumption of profit maximisation constraining firms through rising marginal costs of the ‘supply side’ is not easy to reconcile with the Keynesian postulate of output constrained by aggregate demand. This work follows a prominent line of reasoning to abandon the conventional AD curve altogether and replace it with a construct which seeks to remedy the inconsistency. This is achieved by assigning the central role to profit maximisation on the supply side, while the role of effective demand in the output determination is pushed to the background. JEL Codes: E12 Keywords: Austria, Analysis, Supply and demand, Keynesian economics
9 citations
TL;DR: In this article, the authors describe the implementation of monetary policy by the Banque de France between 1987 and 1996, and build indicators of the stance of French monetary policy to show the influence of the European Monetary System (EMS) constraint on French monetary policies, showing that since 1987, the shocks of purely domestic France monetary policy (i.e., the variations of the interest rate around the rule of ERM peg target), have only had very little impact on the French economy.
Abstract: In this paper, I describe the implementation of monetary policy by the Banque de France between 1987 and 1996. This period was characterised by a quasi-fixed exchange rate for France, as the franc was never realigned within the European Monetary System (EMS). I build indicators of the stance of French monetary policy. These show the influence of the EMS constraint on French monetary policy. In particular, since 1987, the shocks of purely domestic French monetary policy (i.e. the variations of the interest rate around the rule of ERM peg target), have only had very little impact on the French economy. JEL Codes: E50, F31 Keywords: France, French monetary policy, EMS, interest rate
6 citations
TL;DR: The economic performance of the US is viewed by the majority of professional analysts as being superior to that of other major industrialised countries as mentioned in this paper, and some refer to the recent US experience as the “New Paradigm”, characterized by sustained economic growth, low inflation, low unemployment and low interest rates.
Abstract: The economic performance of the US is viewed by the majority of professional analysts as being superior to that of other major industrialised countries. Some refer to the recent US experience as the “New Paradigm”, characterized by sustained economic growth, low inflation, low unemployment and low interest rates. The present work, however, highlights indications of a likely future performance which may well be less positive than the one portrayed by this ‘New Paradigm’. The author describes four underlying trends that show that the past economic performance in the US was largely the result of abnormal factors, and that they cannot be sustained. Furthermore, the US may in fact enter into a period of significant recession or stagflation in the future. JEL Codes: E01, O10 Keywords: United States economic conditions
6 citations
TL;DR: This article reviewed the post-Bretton Woods experience to highlight some policies and approaches that might be helpful for the future and pointed out the benefits of international capital mobility can only be achieved through the flexibility in the exchange rate.
Abstract: In 1971 many academic economists were predicting that the Bretton Woods system of fixed parities would collapse. Some, most notably Milton Friedman, became excited about the possibility of a floating system because the benefits of international capital mobility can only be achieved through the flexibility in the exchange rate. These economists argued that a floating exchange rate system can ensure positive results more than the fixed parities system. Twenty-five years later, however, there is still no consensus on the matter. The author reviews the post-Bretton Woods experience to highlight some policies and approaches that might be helpful for the future. JEL Codes: F31, F00 Keywords: Foreign Currency Management, Analysis, Economic aspects, Foreign exchange, Foreign exchange market
5 citations
TL;DR: Luigi Ceriani (1912-1999) was the founder of Moneta e Credito and Banca Nazionale del Lavoro Quarterly Review, and their editor for the first forty years of their lives as discussed by the authors.
Abstract: Luigi Ceriani (1912-1999) was the founder of Moneta e Credito and Banca Nazionale del Lavoro Quarterly Review, and their editor for the first forty years of their lives. The article illustrates his life history, in particular his role in the founding and in the successive life of the two journals as well as in the Banca Nazionale del Lavoro as director of its Economic Research Department. JEL Codes: A11 Keywords: Obituary, Commercial finance companies, Lease financing, Banca Nazionale del Lavoro, Ceriani, Luigi
3 citations
TL;DR: In this paper, the authors consider present global financial trends, and how the international and national financial systems might be better protected from the recurrence of crises, and argue that national and international surveillance and capital requirements should be complemented by risk control models, built and managed by the banks themselves and approved by national surveillance authorities.
Abstract: Studies have shown that the financial integration of industrial and developing economies can lead to more efficient allocation of resources and to greater aggregate welfare. However, this integration might also lead to greater financial instability in relation to possible massive shifts in capital. This essay considers present global financial trends, and how the international and national financial systems might be better protected from the recurrence of crises. It argues that national and international surveillance and capital requirements should be complemented by risk control models, built and managed by the banks themselves and approved by national surveillance authorities, thus avoiding distortions to market forces and orienting bank managers to more efficient risk management. JEL Codes: G18, G32 Keywords: Risk assessment, Economic stabilisation
TL;DR: The authors discusses different views on the reform of the International Monetary System and illustrates the most recent antecedents of the current debate, focusing on criteria, determinants and effects of the choice among different exchange regimes and discussing in particular the relationship between fixed exchange rates and financial crises.
Abstract: The paper discusses different views on the reform of the International Monetary System. It illustrates the most recent antecedents of the current debate, focusing on criteria, determinants and effects of the choice among different exchange regimes and discussing in particular the relationship between fixed exchange rates and financial crises, and the relationship between exchange rates and worldwide freedom of capital movements. JEL Codes: E02, E5 Keywords: Commercial Banks, International Economic Policy, Foreign Investment Regulations, Currency Stabilisation Programs, Monetary policy