Because financial and macroeconomic conditions are tightly interconnected, financial stability considerations are an important element of any monetary policy framework. Yet, the circumstances under which it would be appropriate for the Bank to use monetary policy to lean against financial risks...

We examine the role of the international credit channel in Turkey over 2005–2013. We show that larger, more capitalized banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and...

This paper shows that Keynes's involuntary unemployment derived from Walras's voluntary unemployment by means of changing of the characteristic of the aggregate supply curve (function) of labour. On the one hand, when the original aggregate supply function is a strongly increasing function, as...

This paper addresses the limitations of Modern Money Theory (MMT) as a guide to development policy. We explore two central questions on this topic: whether MMT policies 1) ought to be implemented in low- and middle-income economies and 2) can be implemented. In relation to the first question, we...

We use the Labor Force Survey and the monthly Revenue Statistics of the Hungarian Central Statistical Office to investigate the short term economic impacts of the CoVid pandemic during its 1st wave. The microdata allow us to investigate the economic crisis beyond the aggregate statistics. The...

The paper aims to answer two main questions. Is it possible to calculate and analyze fiscal, investment and export multipliers in the short term? The classic approach is mainly based on the input–output balances, which are most often published every 5 years. Is it possible to determine the...

Safe asset shortages can expose the economy to liquidity traps. The nature of these traps is determined by the cyclicality of the bond premium. Self-fulfilling liquidity traps are associated with a counter-cyclical bond premium. Small issuances of government debt crowd out private debt and...

This paper explores a model in which large transitory financial shocks can generate persistent slumps in output, land prices, and interest rate. The propagation originates from high sensitivity of land prices with respect to fundamental, which is achieved by a land consumption channel that...

The study investigates the determinants of electronic payment adoption and the role of electronic payment on con-sumers' purchase decisions as well as its effects on consumers' spending growth in Nigeria. To achieve this, both pri-mary and secondary data were deployed. The primary data were...

Large-dimensional dynamic factor models and dynamic stochastic general equilibrium models, both widely used in empirical macroeconomics, deal with singular stochastic vectors, i.e., vectors of dimension r which are driven by a q-dimensional white noise, with q r. The present paper studies...