National Currency Research Articles

The impact of monetary policy during the legal regime of martial law on the Ukrainian labor market

The purpose of this research is to conduct an in-depth analysis of the monetary policy influence during the period of martial law on the state of the labor market and welfare of the population in Ukraine. The article examines the effects of military actions on the workforce, employment sectors, and briefly outlines the key actions taken by the National Bank of Ukraine (NBU) to stabilize the macroeconomic situation in the country, mitigate inflationary pressure, and counter capital outflows.Based on available statistical data and expert assessments of the labor market in Ukraine following the full-scale invasion, the effectiveness of monetary mechanisms, including the temporary shift from inflation targeting to exchange rate fixing, was analyzed. The conducted analysis confirmed that despite timely adaptive changes in monetary policy by the regulator, the effectiveness of the monetary transmission mechanism during wartime remains low. The decline in real production, reduced confidence in the national currency, and the initiation of government spending financed through monetary emission resulted in an excess liquidity situation in the economy, leading to diminished effectiveness of the monetary transmission mechanism. As a result, controlling inflation levels and inflation expectations during the period of martial law cannot be fully ensured by the National Bank of Ukraine.Moreover, the analysis of forced emigration dynamics during the Russian invasion also revealed that high uncertainty levels deter refugees from returning to Ukraine and incentivize them to spend earned income in host countries. Despite the unprecedented wave of emigration, the increase in private remittances from abroad remains marginal. Thus, a priority task for the government should be to develop strategies of financial and social incentives to encourage the return of the working population and facilitate Ukraine’s post-war reconstruction.
 JEL classіfіcatіon: E58, F24, G28, J21

Connectedness Among Geopolitical Risk, Inflation, Currency Values, and Exports by TVP-VAR Analysis: A Worldwide Perspective

Abstract The article discusses the spillover impacts between geopolitical uncertainty, inflation, exchange rates, and exports worldwide by employing the Time-Varying Parameter Vector Autoregressive (TVP-VAR) methodology. The net directional pairwise and net total directional causality among these variables is examined in major advanced economies (US, UK, Germany, France, Israel, South Korea and Japan) and rising economies (Russia, Türkiye, China, India, Brazil, and South Africa). Normal market conditions (since early 2000) and stressed ones since the latest crises (the Covid-19 disease and the Russia–Ukraine conflict) are covered. It is revealed that the national currency value constitutes the most influential determinant of exports and inflation but also in the system examined. Currency values exert direct impacts on inflation but also indirect, affecting exports and enhancing geopolitical risk as this is found to increase inflationary pressures. Intriguingly, this gives credence to the emergence of a new channel of inflation-creation that works through geopolitical risk. Such linkages are more pronounced in the US, South Korea, and Brazil while Germany and France present the weakest relations. Inflation, the currency value, and exports turned out to be very decisive regarding the geopolitical risk in Russia during the Russia–Ukraine war.

Global Market Perceptions of Cryptocurrency and the Use of Cryptocurrency by Consumers: A Pilot Study

Cryptocurrencies, like Bitcoin and Ethereum, have garnered global attention in recent years as digital alternatives to traditional fiat currencies. This paper explores the complex landscape of cryptocurrency adoption, consumer behavior, and perceptions. Beginning with the origin of cryptocurrencies and the dominance of Bitcoin with its USD 1.23 trillion market capitalization, the paper highlights popular online platforms facilitating Bitcoin trading. It also examines the varying legal statuses and regulations across different countries, with a notable divide between Eastern and Western nations, attributed to factors like wealth, risk tolerance, and government restrictions. The role of blockchain technology as the foundation of cryptocurrencies is explained, emphasizing its role in ensuring secure and transparent transactions. The paper delves into the processes involved in handling cryptocurrencies, including the blockchain, exchanges, wallets, and mining. Consumer behavior and the factors influencing cryptocurrency usage are analyzed, with a focus on speculation, algorithm trust, spending power, and demographics. Survey findings and case studies from diverse geographical areas reveal patterns of adoption and local consumer perceptions. The paper concludes by discussing the cryptocurrency market’s inherent volatility and sensitivity to regulatory changes, as well as the different types of cryptocurrencies and online exchanges shaping this evolving financial landscape. Overall, it offers insights into the complex dynamics surrounding cryptocurrency adoption and its potential impact on global finance.

On the question of the concept of the monetary system

This article is devoted to the concept of the monetary system. The paper analyzes the definitions of the monetary system given by the leading representatives of financial and legal science, offers the author’s view on the structure of the monetary system. Based on the results of the study, it was determined that the monetary system is a historically established and established by the law form of organization of money circulation, consisting of a set of banknotes in circulation, public authorities and other organizations involved in the organization of money circulation, technologies and methods of circulation regulation. national currency in cash and non-cash forms, starting from the moment of issue of banknotes into circulation (issue) and ending with the moment of their withdrawal from circulation, as well as operations with foreign currency and other objects that perform certain monetary functions.

Digital Ruble as a Factor in Strengthening the Monetary Sovereignty of the State

The development of technology in the modern world has led to a change in the form of money from commodity, metal and paper to digital. The digital ruble opens up new opportunities and prospects for the state in the field of financing public tasks and functions. One of these is the opportunity to solve the problem of cash security in the public sector of the economy, while avoiding inflation, as well as dollar and export-commodity dependence of the national currency. The article proposes to create two digital platforms based on the digital ruble: a closed one for servicing government payments and an open one for payments made on private consumer markets; the rules for converting the digital ruble are considered; the position on the digital ruble as a new revenue source for financing government purposes is substantiated. As a result, it is noted that the use of the full potential of the digital ruble is a factor that strengthens the internal monetary sovereignty of the state.

The Unnamed: Exploring the Erasure of Women from the History of Ghana

In this paper, I reflect on the contribution of Ghanaian nationalist women towards the independence struggle and post-independence nation building (1950–1970), and their erasure from the mainstream history of Ghana. I rely on the literature on women’s political participation in Ghana and the scholarship on memorializing people for meritorious service in Ghana to explore women as victims of historical erasure. I also deploy other sources like the national currencies, commemorative dates, and naming of monuments to highlight the relative weight we attach to women’s and men’s political contribution to nation building. I argue that despite women’s frontal roles, including movement making, organizing prowess, founding parties, leading civil disruptions, and even funding the independence of Ghana, state-led commemorative acts and memorializing practices belie women’s effort and historize men as founders of Ghana. Such de-historizing is often endorsed by male-led political regimes. To ameliorate this masculinization of the memorializing concern, the paper proffers guidelines to enable a fairer memorializing practice. This includes acknowledging the gender biases in our memorializing practices, researching the unnamed leading women, making their information mainstream, renaming our already named monuments to include leading women, and embossing their portraits on our national currencies alongside the men.

Regional aspect of the efficiency of lending to the agricultural sector of the Ukrainian economy

Ukrainian agriculture has shown resilience, adaptability, and production flexibility during the war. At the same time, the priority issues are the lack of financial resources for business operations, the restoration of damaged facilities and ensuring technological discipline. In this context, the issue of lending to agricultural enterprises is of great relevance. The purpose of this study was to improve and develop methodological tools for assessing the credit burden and efficiency of lending in agriculture by region of Ukraine. The study employed several methods of cognition: comparative analysis, tabular, graphical, statistical, computational-constructive, abstract-logical. In 2015-2022, lending to agricultural producers increased by 2.4 times (by 43.5% or UAH 35.9 billion in 2022 alone). The share of loans attracted is dominated by Kyiv Oblast (31%). The share of lending to the agricultural sector increased by 2.6 times (from 6.1% to 15.7%). Ukrainian agrarians are lent mainly in the national currency (76.4% of disbursed loans) and for terms up to one year (54.4%), with terms of 1 to 5 years (41.2%). In 2015-2021, the loan burden per business entity and per employee almost doubled. The highest lending efficiency was demonstrated by farms in Zakarpattia, Zhytomyr, Rivne, Luhansk, and Chernivtsi oblasts. During the first year of the full-scale war, the efficiency of lending in agriculture fell by 48% (from 8.63 to 4.49 thousand UAH). Agricultural enterprises need support from both the state and credit institutions. The practical significance of this study is determined by the improvement of tools for measuring the level of credit burden and assessing the effectiveness of lending in the agricultural sector of the economy by regions of Ukraine, which can be used by public and sectoral authorities in the regional practice of monitoring and intensifying the practice of state financial support for rural producers

Impact of Remittances on Inflation in Nigeria

International remittances have emerged as an indispensable financial resource for development. However, despite remittances’ growing relevance in overall foreign financial flows in Nigeria, the consumptionoriented nature of the economy of the country presents an intriguing opportunity to consider the connection between foreign remittances and inflation within the country. This study investigates the influence of foreign remittances on inflation in Nigeria from 1990 to 2021. The autoregressive distributed lag technique was employed to scrutinize the long-term behavior of inflation and remittances. The empirical findings indicate that foreign remittances exhibit a negative and statistically insignificant correlation with inflation in Nigeria. The money supply has a satisfactory impact on inflation and is statistically substantial. According to statistical analysis, the exchange rate and economic growth have a negative correlation with inflation, while the exchange rate of the national currency remains stable. Additionally, economic growth has a significant impact on inflation, whereas no correlation has been found between remittances and inflation in the short run. The study argues that in order to ensure price stability, it is important to establish and maintain a mechanism that effectively controls the growth of the money supply and aligns it with economic development goals. This mechanism should promote interaction between financial and fiscal authorities to establish a coherent structure that adjusts monetary policy based on government spending, stimulates sustainable economic growth to reduce inflation, and encourages the creation of jobs and production zones to accelerate economic growth. This may lower inflation by increasing the supply of goods and services. It is necessary to support these efforts by regularly monitoring exchange rate changes and their implications for inflation. Nigeria can maintain economic stability and low inflation by balancing domestic and foreign financial flows.

Currency as an Imprint of the Nation-State: Monetary Conditions in the Ottoman Empire at the Beginning of the Nineteenth Century and the Transition from Ottoman Currencies to the Phoenix of the Hellenic State (1828)

Abstract: The economic decline of the Ottoman Empire was fundamental in various ways to the outbreak and progress of the Greek Revolution. The first attempts to create a national currency during the Greek Revolution reflect efforts to craft a modern state, and the eventual introduction of the phoenix by the first governor of the Hellenic State, Ioannis Capodistrias, underscores the shift to a newborn nation-state. The contradictions of Capodistrias’s monetary policy, however, reflected social antagonisms within Greece.

Cryptocurrency and African fiat currencies: A peaceful coexistence?

AbstractThis study examines the asymmetric behaviour of Bitcoin relative to six major African fiat currencies (Egyptian Pound, Cedi, ZAR, Naira, Rupee and Dinar) for the period 10 August 2015 to 31 December 2022. The time and frequency information in the time series of the currencies were captured applying the ensemble empirical mode decomposition. The quantile regression (QR) and quantile‐in‐quantile regression (QQR) were applied on the decomposed series to examine the connections among the currencies at different currency regimes across time. The empirical results show that both QR and QQR can adequately capture the time‐varying asymmetric behaviour of the currencies across time. The results range from weak to very strong dependencies albeit both negative and positive across different quantiles. Our findings suggest that except for ZAR, Bitcoin is a viable alternative currency to African reserve currencies from the medium‐term since it can hedge depreciation and forex risk of the fiat currencies. Based on the findings of this study, we recommend that forex traders and policymakers in Africa should adopt Bitcoin as an alternative currency to African currencies in the medium‐term to mitigate currency crises in the continent.

ЕКОНОМІЧНИЙ АНАЛІЗ РИНКУ НЕРУХОМОСТІ: ЗАГАЛЬНІ ПІДХОДИ ТА ЇХ ЗАСТОСУВАННЯ ДЛЯ УКРАЇНСЬКОГО РИНКУ

This article presents the results of investigation the general approaches to real estate market analysis. The attemption of economic analysis of the Ukrainian real estate market was made. The authors assumed the importance of applying the main provisions of the general theory of markets in the economic analysis of the real estate market. The key factors affecting the demand in the real estate market are identified. They include the general level of well-being (income) of citizens, the equality/inequality of income distribution in society, the level of liquidity and profitability of the alternative to real estate another assets, conditions of bank lending for purchasing real estate, methods (algorithms , instruments, rules) of valuation the real estate, dynamics of the national currency exchange rate, activity of market agents who work on behalf of buyers. Identified key factors affecting supply on the real estate market, including: economic potential of construction and development companies, price level for construction materials and repair work, conditions of bank lending to developers and investors, methods (algorithms, instruments, rules) real estate objects evaluation, dynamics of national currency exchange rate, the activity of market agents who work on behalf of real estate sellers. Objective reasons for state regulation of the real estate market are singled out. The dynamics of the indicator of the number of transactions on the Ukrainian real estate market were analyzed and the fact of cyclical changes of this indicator under the influence of the psychological factor was clarified. The dynamics of changes in the general level of prices on the Ukrainian market were studied and the fact of a certain stability in changes of the price rate growth was clarified. Some problems of real estate market analysis related to the lack of statistical information necessary for meaningful economic analysis of this market are outlined.

The Urgency of Stable Coin Regulation on Crypto Assets in Indonesia

Stablecoins, as a form of innovation in the crypto asset ecosystem, have emerged as an attractive alternative in bridging the gap between fiat currencies and highly volatile crypto assets. In Indonesia, the presence of stablecoins has sparked debate about the need for strong regulations to mitigate risks and promote sustainable growth in the crypto asset industry. This journal outlines the urgency of stablecoin regulation on crypto assets in Indonesia. We analyze the possible implications of the presence of stablecoins without adequate regulation, including their potential impact on financial market stability, consumer protection, and national security. Additionally, we investigate regulatory approaches that the Indonesian government can take to create a conducive environment for the healthy growth of the crypto asset ecosystem while safeguarding the public interest. Through a multidisciplinary approach, we present arguments supporting the importance of developing a clear and sustainable regulatory framework for stablecoins in Indonesia. We also highlight the challenges and opportunities associated with these regulations and provide insight into how appropriate regulations can provide long-term benefits for the Indonesian economy. This research aims to provide a better understanding of the complexity of stablecoin regulation in the Indonesian context, while stimulating further discussion about the regulatory direction that should be taken in the face of rapid developments in the crypto asset industry

Fine as a type of disciplinary penalty against prisoners of war

The article examines national legislation and international legal acts operating in the field of international humanitarian law, in particular, regarding the treatment of prisoners of war. It has been emphasized that in the modern legal science of Ukraine there are no relevant scientific works devoted to the study of issues of bringing prisoners of war to disciplinary responsibility.
 Emphasis is placed on the fact that the Geneva Convention on the Treatment of Prisoners of War of 1949, in the conditions of martial law in our country, played an important role, determined the need and became the basis for the creation of appropriate national legislation regulating social relations in this area.
 It has been established that the legal position of prisoners of war is not the same and depends on their military rank, in particular, this is clearly expressed, for example, when they are recruited to work, brought to disciplinary responsibility, etc.
 It has been found that the fine, as a disciplinary sanction that can be applied to prisoners of war, from the point of view of its content and method of presentation, is characterized by its incomprehensibility, uncertainty and lack of terms used in its description in the national legislation. It has been concluded that the domestic legislator almost completely adopted (copied) this regulatory provision from the international legal act, without taking into account the realities and specifics of domestic legislation. In this regard, concerns have been expressed about its possible practical application in the form in which it currently exists.
 It has been established that the fine for prisoners of war, in contrast to convicts, is assigned according to the system of penalty days, and consists in assigning to the prisoner of war the daily amount of the fine, determined in accordance with the legislation in the national currency of Ukraine. A clearly defined number of days (term), during which he or she is obliged to pay the corresponding amount of money has been set.
 Emphasis is placed on the imperfection of national legislation, in particular, in the part of defining and applying fines to prisoners of war, on the basis of which the author has proposed appropriate changes and additions to it.

Hard money and fiat money in an inflationary world

The purpose is to determine whether a borrower prefers to borrow hard and fiat money from a bank to buy other assets from a seller, whether the seller wants to sell, how the nontraders are impacted, and whether the bank prefers to lend money and print or withdraw fiat money. The method is to compare the agents’ and bank’s Cobb Douglas utilities over two periods. The conclusions are that the bank prefers to print fiat money to a certain extent. Fiat money printing benefits the borrower/buyer which prefers inflation, benefits the bank if not excessive, and hurts the seller and nontraders. The seller and nontraders prefer a hard money economy or a fiat economy where the bank withdraws money to ensure deflation. More nontraders decrease inflation since the bank’s money printing gets spread across more agents. The article provides further results illustrated by varying 64 parameters relative to a benchmark.

National financial systems are the path to sovereignty. Part 1: A systems analysis

Subject. This article examines the issues related to national financial systems, the Global Financial System. Objectives. The article aims to investigate the features that arise during the functioning of national financial systems as part of the Global Financial System in modern conditions. Methods. For the study, we used a projection method. Results. The article finds that the current centralized Global Financial System is characterized by insurmountable (generic) features that make national financial systems vassals of the central body of the global system, and the system itself unstable and super-totalitarian, in principle. Conclusions. The real way out of this situation is the transition to a decentralized international financial system, in which member States determine the value of their national currency sovereignly.

AN IDEAL LEGAL TENDER FOR THE DIGITAL ERA

The Covid-19 pandemic has accelerated a shift towards digital payments and altered consumer behaviour when it comes to making payments. As a result, the use of state-issued money as legal tender continues to decline in most countries. In turn, the functions and existence of legal tender has decreased. Acknowledging such facts, the purpose of this research is to examine an ideal legal tender for the digital era that can restore the legal tender function while accommodating payment innovation. This research explores legal theories on money and legal tender, as well as the characteristics of various forms of money issued by the State and the private sector, i.e., fiat money, commercial bank money, cryptocurrency, and central bank digital currency. This research concludes that an ideal legal tender for the digital era should incorporate both cash and digital currency. Under this notion, central bank digital currency might serve as the ideal legal tender for the digital era. Nonetheless, there are certain prerequisites to the issuance of such legal tender. These include at least conducting thorough interdisciplinary research and pilot projects by the central bank, establishing an adequate regulatory framework, and ensuring public acceptance of such currency as a means of payment, as well as developing the necessary infrastructure.

ANALYSIS OF THE EAEU INDUSTRY DEVELOPMENTWITH THE USE OF A SINGLE ACCOUNTING UNIT

To analyze the development of industrial production in the Eurasian Economic Union (EAEU), the following data of the EAEU countries cannot be used: 1) presented in national currencies, since they cannot be summed up; 2) calculated at the rates of national currencies, since they contain changes thatdo not reflect their real dynamics; 3) calculated at purchasing power parities (PPP)of national currencies against the US dollar, since in dynamics they include inflation in the US. It is proposed to use data in a single accounting unit ESAU (economic and statistical accounting unit), which excludes inflation in the United States and, at the same time, includes the average inflation for the regional association, reflected in the dynamics of data in the national currency.

Dynamiek van naoorlogse private schuldgroei in Nederland

The level of private debt in the Netherlands is exceptional in both historical and comparative terms. High debt ratios inhibit economic growth, induce financial fragility and lead to deeper and more tenacious recessions. Facilitated by fiat money creation, private debt in the modern economy mainly consists of bank credit. Internationally shared causes of the rise in bank money are the decline in cash payments, tax deductions and a narrowed focus in monetary policy. In the Dutch case, liberalized mortgages, the side effects of the funded pension system and the strong concentration of the banking system add to these. It is the confluence of these factors that has made Dutch debt growth since the 1970s exceptional. Some of these, notably the deduction of interest on mortgages and financial deregulation, have dominated the debate on this subject and hence are part of public perception. However, this does not apply to other mechanisms mentioned, such as the role of bank money and that of bank concentration. As a result, policy analysis of the debt problem thus far has been selective. The lessons of Dutch financial development are of importance to the realization of the European banking union and to monetary policy and taxation in the euro area. Our analysis demonstrates the usefulness of applied history.

Do institutions impact differently inward greenfield FDI and cross-border M&A sales? A study of five institutional quality indicators in developed and developing countries

PurposeThis study aims to test the impact of different institutional quality indicators on two modes of foreign direct investment (FDI)-greenfield investment and cross-border mergers and acquisitions (M&As) for a sample of 110 countries over the period 2003–2017.Design/methodology/approachThe authors develop a model of well-known FDI determinants, such as market size and potential, openness, the value of the national currency and the quality of institutions. The authors examine one-by-one five different institutional factors: law and order, investment profile of the host country, control of corruption (anti-corruption); democratic accountability, and government stability, applying a generalized method of moments (GMM) estimator that assures no endogeneity and reverse causality of the key explanatory variables.FindingsThe results point out the fact that fertile institutional conditions for attracting greenfield FDI to developing countries require law and order, good investment conditions and a state of democracy, but not necessarily tight control of corruption and a stable government. On the other hand, the appropriate institutional environment for attracting cross-border M&A sales flows to developing countries includes strong law and order, good investment conditions, strict control of corruption and strong democratic accountability. The results for developed countries show overall smaller importance of institutions as a determinant of both types of FDI.Originality/valueThis is the first study to analyze the differentiated determinants of the two modes of investment. The study holds implications for crafting two different policies for attracting greenfield FDI and M&A sales.

INVESTMENTS IN HOUSING CONSTRUCTION: FEATURES AND MODERN TRENDS

The relevance of the topic of the article is due to the importance of the problems of investing in housing construction for the economy of any country. Mechanisms for financing housing construction are very diverse and are constantly evolving under the influence of many factors: geopolitical, economic (stability of the credit and financial, insurance and stock markets, national currency exchange rate, inflation rate, solvency of the population, etc.), technological (introduction of information technologies) and etc. The traditional methods of financing housing construction are: self-financing, budget financing, credit financing, mixed financing (equity financing (equity), public-private partnership, etc.). An urgent task is to search for new mechanisms for financing housing construction, which would allow expanding the possibilities of attracting funds from the population, potential buyers, businesses, and financial intermediaries. At the same time, it is important not only to expand the possibilities of attracting additional financial resources, but also to find mechanisms to ease the financial burden of payments for investors, reduce and distribute investment risks. Modern information and communication technologies create new opportunities for technical implementation and acceleration of investment processes, contribute to the emergence of radically new mechanisms that allow diversifying risks, expanding the number of investors, easing the debt burden for potential borrowers, etc.