In this paper, a structural vector auto regression (SVAR) approach is used to empirically investigate the effects of monetary policy shocks on output (measured by real GDP) and prices (measured by consumer price index) in Ethiopia. We isolated the SVAR structural shocks by imposing restrictions on the long- run behavior of the variables in the model, which places a recursive restriction on the disturbances of the SVAR. We considered three alternative policy instruments i.e. broad money supply (M2), lending rate and the real effective exchange rate (REER). We find evidence that price-based nominal anchors (Interest rate and REER) have an effect on real output, a modest effect of the lending rate while a significant effect of REER is documented, with a slightly faster speed of adjustment. Similarly, innovation in the quantity based nominal anchor (M2) affects economic activities significantly. Powered by TCPDF (www.tcpdf.org)

This paper mainly focuses on one of the new specifications of Phillips curve family, the threshold Phillips curve. By estimating the threshold model using G7 plus Australia countries quarterly data, the threshold effect is confirmed only by U.S. and Canadian Phillips curves. No strong evidence for the threshold effect was found among other countries. Moreover, the estimation results for both standard and threshold Phillips curve model indicate weak trade-o relations between inflation and unemployment. Policy makers should review Phillips curve as a forecasting tool with extra caution. Future studies can focus on specific country's threshold effect testing with detailed explanation.

The primary purpose of this study is to test the effects of inflation targeting in Turkey in terms of providing stability in the financial system by lowering the volatility in the Turkish stock market. Although there are many factors other than monetary policy which can affect stock market volatility, this study examines whether the volatility due to monetary policy can be reduced by increasing the accuracy of investors&rsquo / expectations about the central bank&rsquo / s future actions. In the first part, a &ldquo / Volatility Analysis&rdquo / is conducted for three sub-periods including the pre- and post-periods of the implementation of inflation targeting in order to see whether the volatility in the Istanbul Stock Exchange changed over time. Second, an &ldquo / Announcement Effect Analysis&rdquo / is carried out by using the central bank&rsquo / s interest rate and inflation rate announcement dates in order to evaluate how investors&rsquo / expectations react to a change in these rates during period from 2002 to 2007. Finally, a &ldquo / Combined Analysis&rdquo / is done in order to examine the relationship between the returns in the Turkish stock market and the surprise caused by the realized interest and inflation rates being different from their expected values. The empirical findings about the level of volatility indicate that there is a decline in volatility of the Istanbul Stock Exchange returns when volatility is compared on a pre- and post-policy period basis. Also, it is found that the announcement effect was present, meaning interest rate announcements generally came as a surprise to stock market participants. However, this announcement effect has a notably decreasing trend from 2002 to 2007 which is another evidence of the inflation targeting regime&rsquo / s success at reducing stock market volatility. Finally, the &ldquo / combined analysis&rdquo / shows that CBT&rsquo / s power to effect stock returns and to direct investors&rsquo / expectations increases from 2002 to 2007.

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Vietnam und Thailand sind zwei der führenden Exporteure für Reis. Zurzeit hat die staatliche Preispolitik den stärksten und meisten Einfluss auf die vietnamesische Branche für Reis. Es beschränkt die Exportmenge, um die Menge für den nationalen Nahrungsmittelbedarf sicherzustellen. Diese Regulierung hält die vietnamesische Produktion unter ihrem vollständigen potenzial, im Vergleich zu der Reisproduktion in Thailand, zurück. Viele Experten unterstellen, dass Vietnam mehr Aufmerksamkeit der nationalen Strategie zur Ernährungssicherung schenkt als es notwendig wäre. Das verursacht Marktverzerrung und schwächt den landeseigenen Reisexport im Vergleich zu Thailand. Um die Auswirkungen der staatlichen Preispolitik mit einer quantitativen Methode zu untersuchen, wird über ein Gleichgewichtsmodell drei verschiedenen Szenarien eruiert: (1)Die Regulierungsrichtlinie für Reispreise wird wöchentlich aktualisiert; (2)Die Regulierungsrichtlinie für Reispreise wird monatlich angepasst; (3)Die Regulierungsrichtlinie für Reispreise wird quartalsweise überabeitet. Basierend aus den Produktionsdaten, dem Konsum, inländischen Preis, Transportkosten, der Elastizität der Nachfrage und der Angebotsfunktion der vietnamesischen und thailändischen Reisbranche zeigt dieses Modell Resultat: Mit kleinen Anpassungen in der Preispolitik wächst der Wettbewerb in Bezug auf der vietnamesischen Exportmenge auf dem internationalen Markt ohne negative Auswirkungen auf die Ziele der nationalen Ernährungssicherung. Nicht-Reisbauern werden in eine nachteilige Position gestellt aufgrund von höheren Preisen auf dem inländischen Markt. Jedoch Bevölkerung, welche Reisbauern sind, werden von den höheren Handelsmengen, den steigenden Umsätzen und ebenfalls von dem steigenden Nettoeinkommen der Reisexporteure profitieren. Deshalb empfehlen wir nicht die staatliche Preispolitik regelmäßig zu überarbeiten, um das Ziel einer besseren Wetbewerbsfähigkeit von Vietnam zu erreichen / Vietnam and Thailand are the top two rice exporters who contribute more than 50 per cent of market shares in the international market. Therefore, any changes in their rice policies have a strong influence on the world market. Currently, one of the strongest and most often impacts on the Vietnamese rice industry is the Price Controls Policy that regulates the competition in rice market. It restricts the export amount in order to ensure national food security. This policy keeps Vietnamese rice production under its full potential compared with the rice industry in Thailand. Many experts suggest that Vietnam pays more attention on national food security than necessary. This causes market distortion and weakens the country’s competitiveness with Thailand. In order to examine the effects of the Price Controls Policy with a quantitative method, we build and run a spatial equilibrium model with 3 different scenarios: (1) Price Controls Policy updated every week; (2) Price Controls Policy updated every month; (3) Price Controls Policy updated quarterly. Base on the available data of production, consumption, domestic price, transportation cost and elasticities of demand and supply function of Vietnamese and Thai rice industry, the model shows the following result. With less changes in the Price Control policy, the competitiveness in terms of export quantity of the Vietnamese rice on international markets rises without having negative effects on the national food security goal. Non-rice farmers will be in disadvantage position due to higher domestic prices for rice, but the majority of the population who are rice farmers, accounting for more than 70 per cent of the population, will benefit from the higher volume and turnover of rice export, and so the net social revenue will increase also. Therefore, we highly recommend that the Price Controls Policy should not be revised on regular to serve the purpose of achieving better competitiveness of Vietnamese rice