Efficient business transactions requires both liquid cash and electronic transfers. In developing nations, due to technological challenges and level of awareness of the citizens hard currency is most preferred. The demand for currency, however should not be misinterpreted to mean acceptability...

This study assesses the European Central Bank's (ECB) crisis management performance and potential for crisis resolution. The study investigates the institutional and functional constraints that delineate the ECB's scope for policy action under crisis conditions, and how the bank has actually...

In the context of recent developments with cryptocurrencies, as well as the potential rise of central bank digital currencies, we present a new visualisation of money. Using three novel figures, we distinguish between the relevant mechanisms, technologies, recordkeeping, and transactions of...

We estimate the Smets and Wouters (2007) model augmented with the Gertler and Karadi (2011) financial intermediation sector on US data by using real and financial observables. Given the framework of the estimated model, we address the question whether and how standard monetary policy should...

This paper investigates the European Central Bank's (ECB) monetary policies. It identifies an antigrowth bias in the bank's monetary policy approach: the ECB is quick to hike, but slow to ease. Similarly, while other players and institutional deficiencies share responsibility for the euro's...

Happiness sums up people's attainments from living. Economics is concerned largely with prosperity as the material contributor to happiness. Prosperity is a relative term rather than an absolute one. Prosperity level can be defined as the feasible material standard of living that an economy can...

Liquidity may be a serious challenge to growing nations especially in the absence of foreign aid or other necessary assistance like access to borrowing. This paper introduces the Invisible Reserves Theory which states that, “A country that is locked in a depression during the absence of...

Many of the hopes arising from the 1989 fall of the Berlin Wall were still unrealized in 2010 and remain so today, especially in monetary policy and financial supervision. The major players that helped bring on the 2008 financial crisis still exist, with rising levels of moral hazard, including...

This paper discusses the scope for international macroprudential policy coordination in a financially integrated world economy. It first reviews the transmission channels associated with, and the empirical evidence on, financial spillovers and spillbacks - which have both increased in magnitude...

We use the two-country euro-area model developed by Quint and Rabanal (2014) to study policymaking in the European Monetary Union (EMU). We focus on strategic interactions: 1) between an EMU-level monetary authority and an EMU-level macroprudential authority, and; 2) between an EMU-level monetary...