• East Asian Journal of Business Economics (EAJBE)
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• v.5 no.1
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• pp.33-49
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• 2017

This article can see the analysis of the monetary market of Russia at the present stage, its main segments. An assessment is given to the regulation of mechanism by liquidity, the transactions of the Bank of Russia on the provision of liquidity and on absorption of liquidity, the transaction of fixed action and the transaction in the public market are analyzed. To determine the tendency of development of the monetary market and its segments. In the work using the methods of multivariate statistics, the tools of financial mathematics. To be analyzed the amount of data from the 2015 -2016 year, the 2013 year. (daily data). Hypothesis 1. The dynamics of the money market of Russia at the present stage of development of domestic economy is rather stable. Hypothesis 2.The many transactions of regulation to decrease the liquidity of by monetary movement, the control function. Also in the article consider the contour of the financial transaction. This article reveals the theoretical bases of analysis of profitability of credit operations.

• East Asian Economic Review
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• v.22 no.3
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• pp.307-336
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• 2018

This paper proposes a monetary aggregate "Liquidity" that could serve as a useful indicator for gauging the appropriateness of monetary policy. If liquidity rises above a certain threshold, it is signaling that monetary policy is losing traction due to structural and other impediments even when the inflation gap remains open. This indicator supplements the financial cycle approach but adds value by providing a benchmark that is derived from the national account, and not based on its own trend. Over the last two decades, each time this measure rose above the threshold range, it was followed by a decline in GDP growth. The latter was greater when accompanied by a high physical asset value to GDP, e.g., an elevated property market.

• East Asian Economic Review
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• v.18 no.2
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• pp.143-161
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• 2014

This paper examines the effects of global liquidity expansion on advanced and emerging economies by using panel VAR methodology. The results show that global liquidity expansion tends to boost economy by increasing GDP growth and stock prices. However, we find that the effects are asymmetric. The effects of global liquidity on GDP and stock prices are greater and more persistent in emerging economies than in liquidity recipient advanced economies. Moreover, global liquidity appreciates emerging economies' exchange rates more persistently than those of advanced economies. Lastly, while global liquidity expansion increases foreign portfolio investment inflows to Asian countries and liquidity recipient advanced economies, there is no evidence for Latin American countries.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.699-707
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• 2021

The objective of this study is to examine the determinants of the liquidity of 17 commercial banks listed on the Vietnamese Stock Exchanges, HOSE, HNX and UPCoM. The study uses the quarterly audited financial statements from the first quarter of 2006 to first quarter of 2020; it includes 496 observations. Data on GDP and inflation are compiled from the International Monetary Fund and the General Statistics Office of Vietnam. Once collected, the data were organized along the line of unbalanced panel data. The results show that total asset size, return on total assets, and credit growth are positively associated with the liquidity of the listed banks; whereas the interaction between the bank size and the return on total assets has a negative impact on the liquidity of commercial banks listed on the HNX, HOSE, UPCoM. In order to maintain good liquidity, commercial banks need to focus on effective credit growth, ensure a high rate of profit over total assets, and at the same time focus on developing the scale of total assets. However, the development of the size of the total assets should be noted in the balance between the total assets and the rate of return on the total assets.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.31-42
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• 2021

This study aims to determine the relation between the real sector and the financial sector in underdeveloped areas in Nusa Tenggara, Indonesia. To facilitate understanding of these linkages, researchers use the logic of credit channel mechanism of monetary policy, financial intermediation, as well as supply leading and demand following theories. The research variables include economic growth, inflation, liquidity, and NPL at the provincial level, with a data sample from 2008 to 2019. This research uses VAR/VECM as the analysis tools. The findings of the long-term analysis in East Nusa Tenggara show there is a phenomenon of cost-push inflation as well as the negative relation between inflation and economic growth. The impact of liquidity on inflation is positive, while the impact of economic growth on inflation is negative. Meanwhile, in West Nusa Tenggara, the impact of economic growth on inflation is positive. On the other hand, the impact of liquidity and NPL on inflation and economic growth is negative. In conclusion, generally, the economy in West Nusa Tenggara is better than the East Nusa Tenggara. The key to improving the economy of Nusa Tenggara is by improving its liquidity. This can be done by increasing the volume of public savings to increase bank credit capacity.

• Analyses & Alternatives
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• v.2 no.2
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• pp.143-162
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• 2018

This paper focuses on the policy framework about "Quantitative and Qualitative Easing (QQE)" of Japan, and analyzes reasons why the policy goal was not reached. The QQE was introduced by the Bank of Japan in 2013 with the purpose of meeting the price stability target of 2% and getting out of deflation that prevents sustained price decline. However, despite the implementation of the bold monetary easing policy unprecedented in the world, the policy goal was not achieved as of June 2018. As a result of analyzing the causes, the following three structural factors were confirmed. 1) The rise in prices by QQE was limited because Japan's consumer price is strongly depending on import price. 2) The effect is high degree of uncertainty and limited because theoretical framework of reflationist which adopted QQE depends on "expectation formation" by "self-fulfilling expectation" and "multiple equilibria". 3) It was confirmed that the expansion of the monetary base did not lead to money stock due to the existence of Japanese liquidity trap, long-term low interest rate policy.

• International Area Studies Review
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• v.12 no.3
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• pp.171-194
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• 2008

This paper analysis the long-run demand for monetary indicator M2 and Liquidity indicator L in Korea in the period from 1980:1 to 2006:3 by cointegration and error correction models. The empirical evidence that M2, L in Korea is meaningfully cointegrated with income, interest rate, exchange rate, inflation uncertainty, real effective exchange rate, exchange rate uncertainty and LIBOR, thus showing the existence of long-run demand function under open-economy framework.

• East Asian Economic Review
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• v.21 no.1
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• pp.59-80
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• 2017

This paper examines the operational limitations of the Chiang Mai Initiative Multilateralization (CMIM) as a regional financial safety net in East Asia and presents a new regional financial arrangement. To overcome the drawbacks of the Chiang Mai Initiative Multilateralization which has never been activated so far, this study proposes that ASEAN+3 establish a new lending facility, so-called a Reserve Fund Facility, and create a regional common reserves asset. The proposed Reserve Fund Facility framework guarantees lending automaticity of the liquidity facility, based on upfront funding instead of pledge funding. Establishing the Reserve Fund Facility could find a way of making up for weakness of the Chiang Mai Initiative Multilateralization and responding to the regional needs for effective regional financial arrangement. The full-fledged Reserve Fund Facility will ultimately contribute to the future development of East Asia's monetary and financial cooperation beyond the Chiang Mai Initiative Multilateralization.

• Journal of Digital Convergence
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• v.18 no.11
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• pp.43-49
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• 2020

The purpose of this study was to analyze factors affecting the housing market by setting household loans and M2, which are liquidity indicators, and the industrial production index reflecting economic fluctuations, as variables, and to determine the effect of expected housing prices. An empirical analysis was conducted based on the data from January 2005 to May 2020, and the HP filter was applied to the real house price as the expected house price variable. As a result of the analysis, it was found that real household loans, real M2, and so on, had an effect on house prices, and expectations for past house prices and house prices increased the house prices in the present period. These results show that even though the liquidity expansion is aimed at revitalizing the economy, it can affect housing prices as well.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.5
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• pp.179-185
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• 2016

This study verifies whether speculative trading in commodity markets acted as the primary cause of the increase in commodity prices after the global financial crisis using the Structural Vector Autoregressive (SVAR) model. The effects of speculative trading on commodity prices increased by a factor of 3 to 6 after the crisis compared to those before the crisis. Although the demand related variables, such as industrial production, affected commodity prices significantly before the crisis, their effects decreased after the crisis. Consequently, the rebound of commodity prices after the crisis was mainly caused by the increase in speculative money, fortified by the expansion of the global liquidity supply. The global liquidity may well increase in the future, because the U.S. Federal Reserve Board is likely to continue to increase its interest rate. This study claims that when global liquidity shrinks as a result of a change in the Fed's monetary policy stance, speculative trading will slow down, leading to a decline in commodity prices.