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Journal : Economic Journal of Emerging Markets

Monetary Policy under Zero Reserve Requirement in Canada Akhsyim Afandi
Economic Journal of Emerging Markets Vol. 2 No. 1 (1997)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.v2i1.4269

Abstract

Current development shows that financial system tends to move to the direction where controls over banking system would be very minimum. Banks are no longer required to hold afraction of their assets as required reserve with the central bank, and deposits are not subject to interest rate regulation. Fama (1980, 1983) argues that with the absence of reserve ratio price determinacy still holds through the control over currency supply. However, recent development also indicates that the control over currency supply is not any more in the hand of central banks but determined by the demand of the people. Consequently, price level is uncontrollable. Black (1970) even goes further to conclude that the unregulated banking system will bring the traditional monetary theories to an end. This paper deals with the implications of recent development in financial system in Canada. This paper argues that even though there is no longer reserve requirement and currency supply is determined by demand side, the Bank of Canada still has control over nominal magnitude of the economy, namely interest rates, which in turn influence aggregate demand and prices.
Perkembangan teori ekonomi mikro Akhsyim Afandi
Economic Journal of Emerging Markets Volume 7, 1996
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.v7i1.6675

Abstract

Perkembangan paling mutakhir menunjukkan bangkitnya kembali ekonomi makro Keynesian yang menjelma menjadi New Keynesian Economics dengan implikasi kebijaksanaan yang sama. Kebangkitan ini tercermin pada cukup banyaknya artikel di jurnal dan cepat populernya buku teks makro yang ditulis dengan kerangka New Keynesian Economics.
Determinants of income inequality Akhsyim Afandi; Vebryna Permatasari Rantung; Hazem Marashdeh
Economic Journal of Emerging Markets Volume 9 Issue 2, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss2.art5

Abstract

This study examines whether changing economic structure, social conditions, and financialization are responsible for increased income inequality in Indonesia. By employing panel data of 32 provinces in Indonesia that spans from 2007 to 2013, it finds that structural change affects income inequality, increased share of finance reduces inequality, which is against the financialization hypothesis, and social conditions have expected effects on income inequality. While an increased share of both agriculture and service sectors tends to reduce inequality, an increased share of manufacture sector has no effect on inequality. This study finds that falling poverty increases inequality, implying that policy to reduce poverty might not be neutral for inequality and instead cannot prevent it from increasing. Since the higher the college participation rate the higher income inequality tends to be, it does not automatically imply that in order to reduce inequality we need to reduce the number of people who go to college. It might be the case that the college participation rate has not reached a turning point, below which its increase increases inequality, but beyond which its increases reduces inequality.