Easing Policy Research Articles

Analisis Politik Hukum Pariwisata Indonesia dan Dampaknya terhadap Kebijakan Keimigrasian

The high The politics of tourism law in Indonesia greatly influences immigration policy. The politics of tourism law in Indonesia has resulted in a very large acceptance of the entry of foreigners. One of the functions of immigration is to facilitate community welfare development, which has given rise to demands for the Directorate General of Immigration to provide policies that support the international tourism sector. Various immigration facilitation policies such as free visas and ease of applying for visas are implemented to support increasing the country's foreign exchange in the tourism sector. Empirical Juridical Research with a legislative approach analyzed using Legal Theory in Policy Orientation produces the following conclusions: a) Indonesian tourism legal politics currently applies with two approaches, namely culture and economics, but the two are not carried out in a balanced manner so that tourism legal politics actually becomes culture as a potential or resources that can be utilized for economic benefits but are not followed by real efforts to preserve or sustain tourism, b) Indonesian tourism legal politics greatly influences the direction of immigration policy in Indonesia, this is shown by: Visa Free Visit Policy, Immigration Ease Policy for Foreign Investors and Tourists, Beware of Overtourism, and Challenges of Strengthening Supervision of Foreigners.

Exchange Rates and Economic Stability: The Federal Reserve's Monetary Strategy

This study looks at how the American financial and economic institutions have changed in relation to the broader global economic environment. It centers on a thorough assessment of the Federal Reserve's monetary policy trajectory throughout the previous ten to twenty years, with a focus on the introduction of quantitative easing policies and the development of communication tactics. The study analyzes how these monetary policies have adapted to various economic challenges and assesses their effectiveness. Furthermore, the research delves into the fluctuations of the U.S. dollar exchange rate and its profound implications on the national economy, including its impact on foreign direct investment and other economic indicators. Insightful information on how the Federal Reserve influences the monetary policy landscape in the US is provided by the paper's synthesis of various findings. This information is crucial for investors, financial institutions, and policymakers as they navigate the complex world of currency dynamics and global economic interdependencies.

Perspectives of the World Economy from a Geopolitical Perspective

Global economic activity proved highly resilient during the disinflationary period 2022-2023. Employment and income growth remained relatively steady, as favorable supply and demand developments supported the major economies, despite rising central bank interest rates aimed at restoring price stability. As inflation converges towards target levels and central banks move towards an easing policy stance, a tightening of fiscal policies aimed at reducing the high level of public debt, with higher taxes and lower public spending, is expected to affect overall economic growth. The pace of expansion is also expected to remain subdued by historical standards, reflecting factors including the longer-term consequences of the COVID-19 pandemic, Russia's invasion of Ukraine, weak productivity growth and rising geo-economic fragmentation. The economic outlook has been realized through a statistical approach of the indicators provided by the International Monetary Fund by extrapolating them through linear regression until 2029, using credible and reliable sources of information from specialized economic publications, through an innovative proprietary approach.

MONETARY INSTRUMENTS IN ADDRESSING ECONOMIC CRISES: EFFECTIVENESS AND CHALLENGES

This article aims to investigate the anti-crisis reforms of the monetary policy of the Federal Reserve System (FRS) of the United States during the global financial crisis, the pandemic period, and the worsening of the military conflict in Ukraine. The study showed a significant decline in inflation due to the reduced demand for goods and services in the first two crises. Under these conditions, the Fed needed unprecedented measures to soften its policy. Repo rates fell to their lowest level during the 2008 crisis but rose during the pandemic, indicating a significant demand for these instruments to ensure stability. Since the 2008 crisis and pandemic, the easing policy has led to an increase in Fed assets. This has significant implications for the ability of monetary policy to respond to today's challenges and has led to the need for very careful control of assets. But in 2022, the Fed had to take measures to curb inflationary trends, in particular raising the discount rate.The regression analysis carried out in the article demonstrates a significant impact of monetary instruments on the consumer price index, which indicates the effectiveness of those methods used by the Fed. The article analyzes the use of traditional and non-traditional monetary policy tools of the Fed in different economic conditions and the possible risks and negative consequences of the use of non-traditional tools, such as quantitative easing and very low interest rates. Although these techniques can support the economy in a crisis, their risks need to be taken into account. The findings contribute to the knowledge of monetary policy as a management tool and provide stakeholders with valuable insights for future strategizing.

Good Policy or Good Luck? Why Inflation Fell Without a Recession

This article analyzes claims that the Federal Reserve is principally responsible for the decline of inflation in the U.S. We compare several different quantitative approaches. These show that at most the Fed could plausibly claim credit for somewhere between twenty and forty percent of the decline. The article then examines claims by central bankers and their supporters that a steadfast Fed commitment to keeping inflationary expectations anchored played a key role in the process. The article shows that it did not. The Fed’s own surveys show that low-income Americans did not believe assurances from the Fed or anyone else that inflation was anchored. Instead, what does explain much of the decline is the simple fact that most workers nowadays cannot protect themselves by bargaining for higher wages. The article then takes up the obvious question of why steep rises in interest rates have not so far led to big rises in unemployment. We show that recent arguments by Benigno and Eggertson that shifts in vacancy rates can explain this are inconsistent with the evidence. The biggest factor in accounting for the strength in the economy is the continuing importance of the wealth effect in sustaining consumption by the affluent. This arises, as we have emphasized in several papers, from the Fed’s quantitative easing policies. Absent sharp declines in wealth, this wealth effect is likely to feed service sector inflation in particular, even as a majority of households in America’s dual economy find themselves mired in recessionary conditions.

Assessing the Impact of the ECB’s Unconventional Monetary Policy on the European Stock Markets

This study assesses the effects of the European Central Bank’s (ECB) unconventional monetary policy (UMP) on the prices of selected European stock market indices during the European sovereign debt (2010–2012) and the COVID-19 pandemic (2020–2022) crises interventions. This research employs the instrumental variables (IV) two-stage least squares (2SLS) model approach to evaluate the effects of changes in the size of the ECB’s balance sheet on the pricing of key equity market indices in Europe. The results of this study suggest that the ECB’s asset value expansion had the opposite statistically significant effects on the European stock market indices’ prices between the interventions. That is, an increase in the ECB’s balance sheet size was associated with a decrease in the prices of the indices during the sovereign debt crisis and with a rise during the COVID-19 pandemic. This research pinpoints the price sensitivity of each of the European equity indices to the ECB’s UMP and determines the different outcomes of the ECB’s quantitative easing policy between the interventions.

The Moderating Effect of Macroprudential Policies on the Relationship Between the Effectiveness of the Board of Directors in Shaping the Bank's Risk-Taking Behavior

Macroeconomic instability in 2020 caused by COVID-19 can affect the stability of the country's financial system and trigger risks to banking performance. The implementation of macroprudential policies and the effectiveness of the board of directors as policy implementers can be one of the solutions to this problem. The purpose of this study is to see how the influence of macroprudential policies and the effectiveness of the board of directors in shaping bank risk-taking behavior. The method used is panel data regression method and moderation regression with a sample of 43 banks listed on the Indonesia Stock Exchange including banks that consistently published their financial statements for the last five years. The results showed that partially only the effectiveness of the board of directors and company size affected bank risk-taking behavior, while macroprudential policies, macroprudential policies that moderate the effectiveness of the board of directors, and inflation were considered to not affect bank risk-taking behavior, this was due to differences in bank-specific characteristics, the effectiveness of corporate governance, policy implementation in the form of policy easing and tightening, and the interaction between macroprudential policies and monetary policy. However, simultaneously the independent variables and control variables have a significant influence on bank risk-taking behavior.

Quantitative Easing and Climate Change: A Case Study

In the context of increasing global climate change, this article takes an in-depth look at how central banks can use quantitative easing to help address this issue. Based on three research methods: Green Bond, SDGs Bond, Carbon Trading Market and Carbon Reduction Project, this paper analyzes the pros and cons of specific measures of quantitative easing in dealing with climate change. The study found that the above three types of quantitative easing policies can effectively guide funds to green industries, promote green economy and sustainable development, and thus mitigate the economic impact of climate change. This research not only provides a new perspective for central bank policy making, but also provides investors with new opportunities for green investment. This paper suggests that the central bank should increase its support for green projects when formulating quantitative easing policies, and encourage investors to actively participate in green investment to jointly promote the response to climate change.

Implementation of Loan to Value Easing Policy and Efforts to Overcome Problem Property Credit

The function of national banking is not only as a forum for collecting and distributing public funds or as an intermediary for savers and borrowers (investors) but also to improve people's living standards; one of these efforts is to provide various types of Credit, one of which is property credit. One of Bank Indonesia's efforts is to provide relief by increasing the loan to value (LTV) ratio for the lower middle class. Based on this background, this article examines and analyzes the considerations for issuing macroprudential policies regarding loan to value relaxation on property loans and the efforts banks should make to handle problem loans. This type of research is empirical legal research because it examines the considerations for issuing macroprudential policies regarding loan to value relaxation on property loans and the efforts banks should make to handle problem loans. PT. State Savings Bank (Persero) Tbk. Applying a maximum limit differs from Bank Indonesia Regulations because banking upholds the principle of prudence.

Uncovering the (Possible) Relationship between Central Bank Independence and Economic Growth in the Context of Monetary Unions

Abstract This work estimates the relationship between Central Bank Independence (CBI) and economic growth in the context of monetary unions, using dynamic panel models. We use two measures of CBI: the Legal CBI index and the irregular turnover rate. When an irregular turnover of the Central Bank Governor occurs, it harms growth for countries outside monetary unions. On the contrary, the Legal CBI index is a positive factor for growth, although only regarding countries belonging to monetary unions. The limitations on lending to the government is the most important component of the Legal CBI, which explains this result. Additionally, we analyse sub-samples taking into account the level of income, the number of crises, the existence of quantitative easing policies, and different time windows. Interestingly, 1990–2013 was a harmful period for growth for the entire sample but benign for countries that belong to monetary unions. Moreover, when countries are in a crisis they benefit from being a member of a monetary union with an independent central bank. Results seem to point to the conclusion that Legal CBI in a monetary union has the potential to increase economic growth rates. (JEL codes: C23, E58, and O43)

A Study on the Impact of the Fed's Quantitative Easing Policy on the RMB Exchange Rate

A Study on the Impact of the Fed's Quantitative Easing Policy on the RMB Exchange Rate

The Impact of Policy Uncertainty on the US Treasury Bond Market

In 2020, with the rapid spread of the epidemic worldwide, the financial markets of the United States and other countries experienced a huge impact rarely seen in history. This paper focuses on analyzing the impact of COVID-19 on the US economic situation and the bond market. It explores the potential logic of some US government policies to deal with the impact of COVID-19 on the bond market. In addition, this paper also compares and analyzes policies with real-time data to judge the effectiveness of various policies. Currently, the US government actively implements monetary and fiscal policies and prudently responds to the negative effects of these policies. The large-scale purchase of government bonds and the corresponding quantitative easing policy are gradually started among them. These changes effectively controlled the indicators of the US bond market. At the same time, some other policies are carefully managing risks, such as a spike in inflation. Finally, the United States successfully reduced the economic losses caused by the epidemic and survived the crisis.

The Federal Reserve’s Quantitative Easing policy and volatility spillovers: Evidence from Australia

The Federal Reserve’s Quantitative Easing (QE) policies have injected significant liquidity into financial markets. While a vast literature examines the implications of QE, its effect on the financial markets of relatively small open economies is yet to be fully understood. This paper uses Australia as a case study to reveal evidence of intensified volatility spillovers resulting from QE. Using ex-ante implied volatility measures, we derive time-varying indices that exhibit the risk transference between financial markets in Australia and the U.S. Our results show intensified spillovers explainable by QE, especially for equity markets during periods of policy normalization. An amplification of spillovers is also found to follow contractionary QE shocks, implying that risk increases as asset purchases decline. In all, we provide evidence of an international volatility channel of unconventional monetary policy, demonstrating the ramifications of central bank-induced portfolio balancing among investors.

A Model for Implementing Green Building Techniques in Indian Public Sector Constructions

Abstract Green building’s development reduces the reliance on fossil fuels and reduces the total negative environmental effect. The main objective of this research is to develop a model for the implementation of green practises in the public sector constructions in India. We aimed to assess local construction professionals' knowledge and comprehension of green building construction in the public sector by distributing an empirical questionnaire to them. Participants were asked to rate their knowledge, understanding, and importance of the eight withholding factors and six contributing factors identified in the seminal literature. We use analysis techniques like descriptive and factor analysis such as descriptive and factor analyses to analyse the survey responses. A comprehensive model proposed to facilitate the purpose of promoting the successful adoption of green building practises within India's public sector construction projects was primarily based on the insights gained from factor analysis. Based on the findings of this study, the author suggests a model for implementing green building techniques in Indian public sector constructions. The model discusses obstacles to green building initiatives, considers implementation variables, and offers suggestions such as policy ease, and green building promotion.

Credit easing, income gap, and housing price fluctuation

The COVID-19 pandemic has caused a global economic recession, forcing several countries to adopt credit easing policies. This study examines the impact of credit easing on housing price fluctuations from an income gap perspective. Through the construction and analysis of a heterogeneous agent model, we reveal that credit easing promotes the rise of house prices and a positive correlation exists between the income gap and the effect of credit easing on house prices. Additionally, credit easing substantially enhances the housing demand of low-income people, increasing debt and house prices. The analysis using panel data from 36 countries from 1970 to 2018 confirms that compared to rising income for high-income people, a decline in the income level of low-income people significantly increases credit easing effect on house prices.

The Influence of E-Service Quality on Improving the Performance of The UKT Information System Mediated by Perceived Ease of Use at Palangka Raya University

Research in the field of marketing management that leads to practices and policies in technology-based service systems in improving performance. Transparency in payment of educational fees and information is very important with digital information systems. The research was conducted at Palangka Raya University, Central Kalimantan Province, Indonesia. The role of perceived ease of use is also very supportive for people to obtain and use educational fee payment applications. This type of quantitative research uses a questionnaire of 100 respondents in the community who have used e-services, and analyzed using SEM PLS 4.0. The research results show the significant performance of a single tuition information system as information in paying education and fees. Furthermore, the results show that it is very important to manage information systems with a perceived ease of use digital policy. So the implications of these results are to improve information system performance by increasing e-service quality and perceived ease of use at universities

Exploring the Impact of Quantitative Easing Policy on the Business Performance of Construction Companies with the Debt Ratio as a Moderator

During the 2008 financial crisis, central banks (such as the Fed) adopted a quantitative easing (QE) policy to stimulate their countries’ economies and overcome severe economic and financial recessions. However, apart from stimulating the economy by issuing a substantial amount of currency to purchase long-term bonds and suppress interest rates, QE policy also contributed to a boom in the real estate and construction sectors. Therefore, this study employs data envelopment analysis to measure the business performance (BP) of construction companies, and explore the impact of QE policy on the BP of construction companies, between 2004 and 2015, using hierarchical regression. We also examine the moderating role of the debt ratio on the relationship. Focused on publicly listed construction companies in Taiwan, this research reveals three encouraging findings. Firstly, QE policy indeed enhanced the BP of Taiwanese construction companies. Secondly, performance improvements in construction companies due to QE policy show a time-diminishing trend, suggesting the importance of seizing the initial policy benefits of QE implementation. Lastly, construction companies with appropriate financial leverage may exhibit better BP. These findings can provide valuable insights for relevant government entities and decision-makers in the industry for policy and investment decisions.

A Study on the Financial Situation Changes of Major A-share Real Estate Companies Since the Adjustment of Purchase Restriction Policies

To prevent over expansion of property bubbles in China, housing purchase restriction policies were put into effect in 2010. Nevertheless, to be adaptable to economic conditions at that time, there was firstly a relaxation of housing purchase restriction policies in 2014 and after that, several more adjustments were made. By analyzing the financial indicators of the main real estate enterprises in A-share market, this paper wants to find the general trends and common features of those corporations under policy adjustments and changeable market environment. The analysis results show that the majority of firms kept high levels of debt and inventory all the time and from 2014 to 2019, most companies net income margins, net income and operation revenue generally kept increasing. However, as the Coronavirus pandemic broke out at the end of 2019, those profitability measures started to decrease widely and sequentially, even with a new round of policy easing. Facing with this situation, it is suggested that to prevent debt risks, property enterprises could take deleveraging and destocking into consideration and to achieve a soft landing of the housing market, new ways of policy adjustment could be implemented by the government.

Analysis of the Impact of Quantitative Easing Monetary Policy on the Japanese Economy

Quantitative easing (QE), which was implemented as a measure to address deflation and promote economic growth, is subject to varying interpretations regarding its effectiveness to Japan economy. Supporters attribute the efficacy of quantitative easing (QE) to its role in mitigating a more severe economic decline through the stabilization of asset prices and the maintenance of low interest rates, so preventing future crises. Nevertheless, it is important to acknowledge that divergent viewpoints shed light on the challenges associated with attaining long-term economic expansion. These challenges are often attributed to persistent structural concerns such as a progressively aging population, restrained levels of consumer demand, and cautious levels of company investment. Critics express apprehensions regarding the inadvertent ramifications of extended quantitative easing (QE), encompassing imbalances within financial markets and potential threats to financial stability. This abstract presents a synthesis of several perspectives, highlighting the intricate relationship between quantitative easing (QE) policies and Japan's underlying economic issues. It contributes to a nuanced discussion on the overall effectiveness of QE in the Japanese context.

The effects of conventional and unconventional monetary policies of the US, EU, and China on global green investment

This study investigates how the monetary policies of the USA, EU, and China affect global green investment differently by using the dynamic autoregressive distributive lag (DARDL) model and kernel-based regularized least squares (KRLS). DARDL's results show that US monetary policy is not conducive to global green investment in the short and long term. The EU's conventional monetary policy negatively impacts global green investment, but only in the short term. However, China's conventional monetary policy boosts global green investment in the long term. The inference from the response simulations implies that the conventional monetary easing policy of the US, EU, and China positively influences global green investment in the long and short run. However, the magnitude of the response of the EU is greater than that of the US and China. Unconventional monetary policy easing of the US negatively influences global green investments in the short run, whereas China and EU policies affect it positively. However, in the long run, global green investment is unaffected by unconventional monetary policy easing in the case of the US. In contrast, China's and the EU's unconventional monetary policies easing have had a positive impact. In the case of financial development, a negative impact on global green investment is more strongly evident for China than for the US and the EU. Overall, the empirical results of this study recommend that a significant change in the monetary policies of large economies is required to promote global green investment for ecological transition.