ABSTRACT Monetary policy affects firms’ hiring and investment decisions via changes in interest rates. This paper examines its impact on employment through capital-labour substitution by automation, focusing on sectoral differences. Key findings reveal: (1) High-automatable occupations in the service sector see significant job losses after contractionary shocks, while the manufacturing sector shows no such response; (2) Within the service sector, temporary and low-skilled workers in high-automatable occupations are most affected, though this weakens when low-automatable workers are included. These results highlight automation risk as a key factor shaping employment dynamics under interest rate hikes, particularly in the service sector.

Background Digital transformation and artificial intelligence (AI) have become increasingly important in enhancing the effectiveness of macroeconomic policies, particularly through improved economic data management and more efficient targeting of vulnerable groups. Poverty reduction remains one of the most critical challenges for policymakers in Iraq due to its wide economic and social implications. Addressing this challenge requires a comprehensive mix of macroeconomic policies tailored to the national context. This study examines the effectiveness of key macroeconomic policy instruments in reducing poverty in Iraq during the period (2004–2024). Methods The Autoregressive Distributed Lag (ARDL) model is employed, along with the Bounds Testing approach, to investigate the existence of a long-run cointegration relationship between the absolute poverty line and major macroeconomic policy variables, including broad money supply, inflation rate, government expenditure, and per capita foreign trade. Annual time-series data for the period were analyzed to estimate both short-run and long-run dynamics. Results The results indicate a statistically significant long-run equilibrium relationship at the (1%) level between macroeconomic policy instruments and the absolute poverty line. The empirical findings show that monetary policy exerts the strongest influence on poverty levels, with broad money supply, inflation, and per capita foreign trade displaying significant effects. Government expenditure plays a meaningful role in reducing poverty in both the short and long run. Conclusions The study concludes that integrating digital transformation and AI technologies into the design and implementation of macroeconomic policies can substantially enhance their effectiveness in reducing poverty. Key recommendations include establishing a National Council for Digital Transformation and Artificial Intelligence within the Ministry of Planning, strengthening digital infrastructure through public–private partnerships, activating electronic interlinkages among ministries via unified databases, enhancing financial inclusion platforms targeting vulnerable groups, improving government spending efficiency, and encouraging investments that generate sustainable employment opportunities.

In a context of increasing wildfire risk and highly fragmented forest ownership, this work investigates two relatively recent monetary policy instruments in Catalonia that require grouped applications: a subsidy for fuel reduction, which prioritises collective applications in wildfire-strategic areas, and a climate credit system that promotes territorially coordinated, multifunctional forest management that, i.a., decreases wildfire risk through fuel management. Through in-depth interviews with beneficiaries and consultations with key informants, we analysed whether these measures have triggered adjacent forest management, and how they have interacted with joint action rules to facilitate concerted interventions. The qualitative content analysis indicates that these measures represent a significant step towards landscape-level management and that pre-existing forest owners’ associations play a crucial role in capturing the available funds. The eligibility of coordination costs is also appreciated for covering the transaction costs of catalysing landowners. Yet, areas with weaker social capital may become disadvantaged if there is no external support for their organisation. These findings contribute to the emerging field of policy tools for effective landscape-level interventions.

Effects of Monetary Policies on Stock Market Performance in Nigeria: Further Investigation

This study investigates how inflation and monetary policy, as reflected in the policy interest rate (BI Rate), affect Indonesia's economic growth, as indicated by the GDP. Multiple linear regression analysis was employed to discover connections between independent and dependent variables in an economic setting. The analysis's findings indicate that neither the BI Rate nor inflation significantly affects GDP growth. Although not sufficiently strong to be regarded as statistically significant, the positive coefficients derived from both variables show a propensity for increases in inflation and policy interest rates to enhance economic growth. The significance of the interaction between the two variables in monetary policy is confirmed by simultaneous analysis, which reveals that both inflation and the BI Rate significantly contribute to GDP variance when examined together. These results suggest that monetary policy must work in tandem with fiscal policy and the real sector, as well as be adaptively managed to respond to changes in the global economy to effectively stimulate economic growth in Indonesia [2]. This study is anticipated to significantly aid policymakers in developing more potent plans to accomplish sustainable growth and national economic stability.

Abstract The paper starts by reviewing the post-Keynesian analysis of the formation of the euro, indicating the concerns over the imposition of common fiscal policies across the Economic and Monetary Union (EMU) countries, the likely deflationary effects, and constraints on counter-cyclical fiscal policy. Scepticism was expressed over the role of the European Central Bank (ECB) and its relationships with national governments in terms of the financing of government expenditure and its abilities to achieve a harmonised inflation target across all countries. It is argued that the issues identified by post-Keynesian (and other) authors have haunted the governance of the euro area and in a number of cases and that corresponding policy shifts have intensified these problems. The developments over budget deficits and national debt in the EMU are mapped out. It broadly suggests a tightening of the deflationary nature of the rules, particularly regarding the excessive deficit procedures, and the shift of emphasis from deficit to debt. The adoption of the ‘structural budget’ and its reliance on ‘potential output’ raise further problematics. Section 5 relates to the role of the ECB and monetary policy, and the relationship between ECB and national governments. Section 6 explores the responses of the authorities to the euro and other crises. Section 7 is a concluding section in which we discuss how far our fears on the euro were realised, and the struggles to address issues.

This study examined the impact of interest rate liberalization on investment in Nigeria from 1986-2023 using data from the CBN Statistical Bulletin. The data were subjected to various diagnostic tests such as Unit Root, ARCH, Normality, among others, and the result revealed that the data were suitable for estimation. The dependent variable was represented by Gross Fixed Capital Formation used as a proxy for investment, while Exchange Rate, Government Expenditure, Interest Rate, Inflation and Money Supply were the independent variables. The Auto Regressive Distributed Lag (ARDL) estimation technique was employed to test the short and long run impact of the independent variables on the dependent variable. The ARDL long and short run results revealed that Government Expenditure and Interest Rate significantly impacted on investment during the period under review showcasing the importance of these variables in promoting investment in Nigeria. The result further revealed the need to. strengthen policies that would promote stable exchange and inflation rate that would enhance domestic investment. Based on the findings of this study, it is pertinent to maintain macroeconomic stability through sound monetary and fiscal policies as well as strategic investments in infrastructure, education, and regulatory reforms, for a more robust and diversified economy.

Purpose This paper aims to investigate the impact of diaspora remittances on Nigeria’s monetary dynamics amid domestic capital constraints. It specifically examines how remittance inflows affect key financial indicators, producing potentially contrasting short- and long-run effects, particularly through changes in liquidity and credit availability, as well as unintended inflationary pressures. Design/methodology/approach This paper uses linear and nonlinear Autoregressive Distributed Lag (ARDL) models on annual data spanning 1980–2023. The use of these models enables a detailed analysis of the effects of diaspora remittances on two financial development indicators: credit to the private sector and broad money supply. This approach allows for a clear differentiation between long-run equilibrium relationships and short-run dynamic adjustments resulting from remittance inflows. Findings The empirical results confirm an evident temporal and asymmetric duality in the financial development-remittance nexus. Firstly, in the long run, remittance inflows exhibit a significant positive relationship with both private-sector credit and the broad money supply, confirming their role in financial deepening. However, the short-run dynamics reveal a more complex picture: positive shocks to remittances contemporaneously constrain private credit and money supply, suggesting initial frictions in financial intermediation. Furthermore, the analysis shows significant asymmetry: the effects of rising and falling remittance flows are not mirror images, and adverse shocks also exhibit distinct lagged detrimental impacts. This indicates that the monetary system reacts differently to the acceleration vs the deceleration of remittance inflows. Originality/value This paper complements the existing literature by providing empirical evidence on the asymmetric and temporal effects of remittances on Nigeria’s monetary dynamics. It highlights the dual nature of remittance impacts on Nigeria’s monetary policy, indicating how short-run shocks can diverge significantly from long-run benefits. It emphasises the need for synchronised monetary policy measures that mitigate short-run disruptions while leveraging the long-run advantages of remittance inflows.

Fragmented fiscal policymaking and monetary policy: Policy game in a New Keynesian economy

Tariffs, inflation and monetary policy: Implications for welfare

On steady-state money distributions and monetary policy: Smoothness in a matching model

International spillovers of US monetary policy on inequality

FOEs and the transmission of US monetary policy shocks: Evidence from China

The impact of monetary policy uncertainty on corporate innovation investment: A dual-channel analysis based on financing constraints and risk-taking

Abstract Modern macroeconomic theory and central bank practices have made expectations management a key ingredient in successful monetary policy. However, the challenge is greater in emerging economies, which are prone to instability and crises. Given that Brazil has frequently experienced major economic fluctuations, we study the behavior and forecasting performance of inflation expectations in a way that is robust to the presence of instabilities. The proposed tests provide more evidence against the rationality of the forecast for survey-based private forecasts. Furthermore, they uncover an informational or methodological advantage behind the medians of inflation expectations reported in the last five business days, and in forecasts in which the distance from the publication date of the observed IPCA prevails in relation to the projection time in the survey.

In the era of globalization marked by a global growth projection of 2.8% in 2025 amid geopolitical tensions and supply chain disruptions, Indonesia and South Korea face economic shocks affecting GDP, inflation, and unemployment, prompting this qualitative descriptive study to analyze and compare their resilience strategies using secondary documents from BPS, Bank Indonesia, Bank of Korea, and IMF (2023-2025) as population with purposive sampling, analyzed via thematic reduction, comparative tables, and triangulation. Results show Indonesia sustained GDP growth above 5%, unemployment at 4.76%, and inflation at 0.76% in January 2025 through domestic market strengthening, downstreaming, and subsidies, while South Korea addressed 0.1% GDP contraction and high youth unemployment via flexible monetary policies, technological innovation, and vocational training. In conclusion, both nations' adaptive fiscal-monetary synergies proved effective, recommending export diversification for Indonesia and demographic incentives for South Korea to bolster future resilience.

Funding liquidity regulation, ultra-expansionary monetary policy and European banks’ profitability

Federal reserve monetary policy and income inequality across US states

Sovereign risk and monetary policy transmission: Evidence from the euro area

Incomplete information, strategic uncertainty and optimal monetary policy