Search Results for crowding-out
Abstract
The research aims to test a hypotheses explaining the behavior of commercial banks towards government borrowing in the Iraqi economy on the one hand and the effect of internal government borrowing on bank credit. government borrowing on bank credit. The lazy bank hypothesis is one of the explanations for banking behavior, it believe a continuous increase in government borrowing from commercial banks can create a risk that leads banks to reduce their lending to the risky private sector compared to granting loans to the public (government) sector and thus eliminates their incentives to search for new profitable opportunities To invest in the private sector.
The effect of crowding out means that the rise in government sector spending leads to a decrease in private spending or sometimes even cancellation. The main reason for crowding out is to reduce the government deficit if the government borrows from the market to fill this deficit so the demand for investment in the market increases and the value of money in the market increases automatically And the interest rate increases. Using a method of Co-integration and a Error Correction Model to measure the relationship between internal government borrowing and credit in a short and long term for the period Jan. 2006-May 2020 monthly data . the results of the econometric model supported this hypothesis, which reflects negatively on the size and effectiveness of the private sector and its role in the Iraqi economy
Abstract
The decade of the nineties witnessed a great crowding from many developed and developing countries towards adopting the policy of inflation targeting as a modern framework for monetary policy through which the explicit announcement of the target inflation rate and directing all monetary policy tools in order to achieve this rate, the discussion later moved towards the impact of This policy in the rate of growth has topped the headlines of many researches. It is claimed that the failure of this policy to promote growth may bring catastrophic results to any country, especially the developing ones. The aim of the research is to know the extent to which the inflation targeting policy can actually achieve high rates of economic growth in eastern countries Asia taken as a model from Indonesia, based on the premise that: The adoption of inflation targeting reflected positively in growth and enhanced its stability. Targeting inflation and economic growth in Indonesia, while the second side celebrated the use of quantitative analysis tools, starting with the data stability test to enhance research and reach its goal, and then progress See the search form. The data for the research were collected based on the publications of the World Bank, and the research covered the period (1990-2019). The research reached a number of results, the most important of which were: - The inflation targeting framework contributes to supporting the levels of macroeconomic performance through its role in reducing fluctuations in economic growth after the trend of a number of central banks in East Asia to implement that strategy