textroad.com The Impact of Monetary Policy on Financial Performance: Evidence from Banking Sector of Pakistan Rashid Zaman*‚ Muhammad Arslan‚ Muhammad Sohail‚ Dr Rashida Khatoon Malik Department of Management Sciences‚ Bahria University Islamabad‚ Pakistan Received: April 29‚ 2014 Accepted: June 27‚ 2014 ABSTRACT Interest rate an important indicator of monetary policy always has major impact on financial sector performance. The purpose of this paper is to enlightened the monetary policy effect on banking
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The need for fiscal reforms Malaysia’s fiscal policies have generally been expansionary‚ with 46 years of budget deficits‚ punctuated by only six years of budget surpluses‚ since Independence. While this does smack of a serious lack of fiscal discipline in an otherwise impressive macroeconomic management track record‚ there is no doubt that Malaysia has managed these deficits fairly well‚ with the notable exceptions in the early eighties when the deficits had ballooned warranting external
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Subject Area: Economics Topic: Deficit Spending Essential Question: Should the government use instruments of monetary and fiscal stimulus policies to reactivate the economy? Imagine people living in parks called Bushville’s‚ lines for soup kitchens that go for blocks‚ and all across the country kids running away from home travelling on trains searching for your next meal. This is just a taste of what 2009 could have been‚ but thankfully‚ the year did not go down this way although it will be remembered
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Question: Discuss the implication of business cycles on fiscal and monetary policy. Answer: Business Cycle: Market economies have regular fluctuations in the level of economic activity which we call the business cycle. In other words‚ the business cycle is the periodic but irregular up-and-down movements in economic activity‚ measured by fluctuations in real GDP and other macroeconomic variables. A business cycle is identified as a sequence of four phases: 1. Contraction (A slowdown in the pace
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IMPACT OF GOVERNMENT POLICY ON ECONOMY A. INTRODUCTION Generally‚ policies and strategies of Nigerian government towards development are shaped by two principal objectives of desire for economic independence and the demand for economic development. Multi national corporations are expected to bring into Nigeria‚ foreign capital in the form of technical skills‚ entrepreneurship‚ technology and investment fund to boost economic activities thereby‚ rising the standard of living of Nigerian. This can
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The Spanish fiscal policy during the recent “great recession” Abstract: This paper examines the fiscal strategy followed by the Spanish government in order to stop the fall of aggregate demand induced by the financial crisis. The Spanish economy provides the best example among the countries of the European Monetary Union of the contradictions between the discretionary fiscal policy in the crisis and the fiscal rules. The intensity of the crisis and some initial badly designed fiscal stimulus shortened
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Fiscal policy in Malaysia 1. Background In the 1970s‚ the Malaysian government played a key role in the economy. The government ventured beyond its traditional functions and took on a more direct and active role in the country’s overall social and economic development process. This period saw the government’s direct participation in the private sector through the establishment of large commercial enterprises. Government participation in the economy expanded further in 1980-82 as it pursued
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Expansionary Fiscal Policy is identified when government spending is higher than its revenue. Expansionary fiscal policy can be used in order to either stimulate a sluggish economy or to slow down an economy that is growing at a rate that is getting out of control (which can lead to inflation or asset bubbles). Fiscal policy directly affects the aggregate demand(AD) of an economy. Aggregate Demand = Consumption + Investment + Government Spending + Net Exports Fiscal Policy has an effect on each
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CHAPTER 11 MONETARY AND FISCAL POLICY Chapter Outline: • The effects of fiscal and monetary policy on output • Monetary policy and the transmission mechanism • The liquidity trap • The classical case • The quantity theory of money • Fiscal policy and crowding out • Monetary accommodation • The effects of alternative policies on the composition of output • The U.S. economy in the 1980s and 1990s • Anticipatory monetary policy • The policy mix during the German re-unification
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© 2008 International Monetary Fund February 2008 IMF Country Report No. 08/71 Islamic Republic of Afghanistan: Selected Issues This Selected Issues paper for Islamic Republic of Afghanistan was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on January 30‚ 2008. The views expressed in this document are those of the staff team and
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