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In this study using yearly data, it is examined if the effect of money supply (broad money) on inflation is asymmetric or not. 38 countries which have 5% and above inflation rate in average during the period of 1989–2018 are investigated through the panel data analyses. The study differs from other researches, which use monetary shocks in explaining the asymmetric relation, in which that it uses broad money change intervals along with control variables to see the asymmetric impact. Using broad money change intervals, it is concluded that the relation between broad money and inflation is explained better in the asymmetric pooled and fixed effect panel data models, compared to the symmetric models. According to the results, the effects of negative and positive changes in money supply on inflation are not symmetric. Moreover, as broad money increases, inflation goes up further. In the light of this information, it is possible to mention an asymmetric relation between broad money and inflation.

This study examines the dynamic relationship between growth, inflation, and real money balances in the Economic Community of West African States (ECOWAS). We apply a new approach by extending comprehensive econometric methods so that monetary dynamics can be better understood in the West African sub-region. The study obtained data from the World Bank from 2006 to 2021 and covered 15 countries. For robustness checks, we estimate dynamic ordinary least squares and fully modified ordinary least squares. These findings reveal the existence of a significant cointegration relationship between growth, real balance, and inflation. Furthermore, this study found that real balance has a positive long-run dynamic impact on growth. Likewise, there is a short-run positive impact of money and inflation on growth. We contribute to the literature on the money-growth nexus by focusing on West Africa, which faces macroeconomic vulnerabilities due to structural imbalances. These findings have policy implications for central banks and the Fiscal Agency. Central Banks must collaborate to reduce money in the informal sector, while Fiscal Authorities must control inflation collectively.

Most research on financial development and non-resource economic growth presents a wide range and, in some cases, even conflicting results. Evidence from emerging and resource-rich countries may enrich the scientific discourse with new empirical evidence. Therefore, the study aims to assess the mutual impact of financial development and non-resource economic growth in Azerbaijan. The growth rate of real non-oil gross domestic product (GDP), the share of loans in non-oil GDP, and the share of the broad money in GDP were taken as variables for the model. Monthly variable data from 2005–2022 were processed using the unrestricted vector autoregression model. The study’s results did not provide evidence for long-run causality between the finance sector and non-oil growth. But there are short-run and unidirectional causal relationships – from loans to non-oil growth and from broad money to loans. The results also showed that the increase in loans does not support broad money growth. Policymakers are encouraged to increase incentives for lending to the non-oil sector. Supporting money supply growth through increased deposits and non-cash money could also positively impact non-oil growth through loan channels. The development of the securities market could also open up additional financing opportunities for entrepreneurs in the non-oil sector. AcknowledgmentsAcknowledgments are expressed to all the scientists whose works have become a theoretical and methodological foundation for the study. It is also necessary to note the Central Bank of the Republic of Azerbaijan, which provides open access to the use of an extensive information base.

The main aim of this study is to investigate the determinants of inflationary experience in Ethiopia. The study focused on economic and econometric criterion to examine the long run and short run impacts of macroeconomic variables on inflation in Ethiopia. In order to accomplish this paper, the study has employed time series data for the period from 1974/75 to 2014/15. To check for the stationarity of the variables, the researcher has used augmented dickey fuller and Phillips-Perron unit root test and all variables become stationary at first difference. Then, long run and short run estimates had been examined by using Johansen Co-integration methodology and Vector Error Correction approach with lag length of two. The data on macroeconomic variables were taken from National Bank of Ethiopia, Ethiopian Economic Association and World Bank database. The findings of the study indicated that in the long run consumer price index has found to be positively influenced by money supply, real gross domestic product and overall budget deficit in which these all variables are positive and statistically significant determinants of inflation. The growth of money supply should be continually kept in control, given its long run potential impact in accelerating inflationary pressure to ensure stable price level in an economy and keep on the growth of real gross domestic product with single digit inflation rate and displaying a high sense of transparency in fiscal operations bring about a realistic budget deficit that would serve as incentives to productivity and stable general price level.

This paper investigates the impact of the money supply in different states of inflation and economic growth in South Africa from 1990 to 2021. The term “states” defines periods of low and high rates of economic variables of interest. Markov-switching dynamic regression (MSDRM) and time-varying parameter structural vector autoregression (TVP-VAR) are used in this paper. The contribution of this paper is not only based on the long run but also on the examination of the impact of the money supply in different states of inflation and economic growth. Moreover, the use of shock accounts for time-varying elasticity. It is found that there is a 0.70% decrease in the gross domestic product for a 1% increase in money supply in state 1, while in state 2, the money supply was insignificant. The money supply had a negative and a positive impact on inflation in states 1 and 2, with rates of 0.05% and 0.35% in the respective states. The money supply had a high multiplier effect on gross domestic product and inflation. More than 5 years were spent in each state for both gross domestic product and inflation, while the transition probability of moving and returning to each state is significant. The trade-off of using the money supply for economic growth and inflation is evident in South Africa. It is recommended that the state of the economy be considered when using the money supply in an effort to stimulate economic growth or stabilise inflation.

Indonesia is a country that implements a dual banking system. The progress of the conventional financial industry coincides with the development of the Islamic financial sector. This study discusses the influence of external factors namely inflation, broad money (M2), BI rate and internal factors namely return on asset (ROA) and operational efficiency ratio (OER) on profit-sharing of Islamic banking deposits and conventional banking deposits interest. The method used in this study was the Error Correction Model (ECM). Based on the results of the study, it can be concluded that inflation and broad money (M2) affects the profit-sharing of deposits. Whereas the conventional bank deposit interest is influenced by ROA, OER, BI rate, inflation, and M2. The fluctuation of external and internal variables has an impact on Islamic banks and conventional banks in determining interest and profit-sharing of deposits.

The actuality of the given research is determined by the importance of establishing the adequatevolume of international reserves held by the Central Bank. The main purpose of the article is investigationof new methods of calculating the adequate level of international reserves for emerging economies,proposed by the IMF and those existing in international practice. The main research methods weresystemic analysis and logic synthesis. The main result obtained in this article, as a result of the research,is proposing a special approach in applying the IMF methodology in the Republic of Moldova,considering the dependence of the economy on the export of labor. The conducted calculations show asignificant decrease in the level of international reserves of NBM over the past two years and theirapproach to the critical value. To overcome internal imbalances, the international reserves managementshould suppose the accumulation of a higher volume than the average, which would partly compensate theshortcomings in implementing reforms of transforming the economy of the Republic of Moldova,improving their efficiency and quality of domestic policy.

In an attempt to diversify itself away from the dominance of oil on its economy, Saudi Arabia needs to emphasize on the growth of its private sector. Currently, the private sector’s contribution to economic growth is meager as the oil sector dominates the economy. This study attempts to assess the role of financial development towards the growth of the private sector. Assessing this relationship is important, as it is quite probable that the dominant oil sector attracts the financial resources, affecting the private sector adversely. Johansen’s method of cointegration is applied on the data for the period 1985–2018. The private sector’s gross domestic product has a negative relation with the supply of money, positive relation with bank credit to private sector, and no significant relationship with share market capitalization, as shown by the results of the study. In addition, the private sector’s growth has a positive and significant relationship with government expenditure, investment, and trade openness. Hence, the study recommends further strengthening of financial sector services. Besides the current trend on government expenditure, investment and trade openness should continue to enable the private sector to contribute significantly to the economic growth of the country. A previous study on the private sector’s growth and financial variables is exclusively missing, and makes this study unique.