Continuous growth in Islamic finance calls for studying the framework in which the monetary policy maker (i.e., central bank) performs its functions. Central banks in Muslim countries are using various instruments for monetary policy purpose including interest rate. As a result, Islamic...

The financial system of a country comprises entities engaged in transactions involving financial instruments in money, capital, and foreign exchange markets. This sector has strong linkages with other sectors of the economy like external, fiscal and real sectors. The apex financial institution...

It is now a few years since the introduction of the common currency, and Europe is still experiencing high unemployment. The conventional logic attributes this problem to strong trade unions and other flaws in the labour market. This article takes a different approach. Using a game theoretic...

This paper discusses the real understanding of inflation, its true causes and its root solutions.

In this paper, using monetary policy rules, we build a model which describes the fixing of the interest rate by the Bank of Central African's States (BEAC). First, with a GMM adapted for a forward looking rule, we propose a reaction function for this central bank. The result shows that from 1986...

Using daily data from the Czech Republic in 1/1/1998-31/12/2002, we find that foreign exchange intervention activity is determined by the degree of exchange rate misalignment and lagged intervention. Additionally, inflation targeting regime is a binding constraint of intervention activity.

Abstract. This paper deals with a still unresolved issue - credit creation and control- in an interest free banking system. The available literature on the subject is scanty, controversial and inconclusive. The paper holds that credit creation per se is not un-Islamic; the essential point is how...

This paper examines the different interactions that can exist between an independent central bank and the economic policy in a country. The focal point of this survey is based on the « temporal incoherence »problem raised in the years 1970 by Prescott and Kydland. These two authors arrived to...

This Discussion Paper defines the Communication Strategy for Inflation Targeting of the Central Bank of Albania as the objective of increasing and reaching the (full) awareness of the public on monetary policy issues, in general, and Inflation Targeting, in particular. The Paper distinguishes...

Central Bank of the Republic of Kosova (CBK), was established in June 2008, and is the successor of the Authority of Banking and Payments of Kosovo and the Central Banking Authority of Kosovo. Main Functions of the Central Bank of Kosovo are: • Drafting and implementation of monetary policy,...