-
Monetary Policy and Inflation: Empirical Evidence from Cameroon
Issue:
Volume 6, Issue 5, October 2018
Pages:
200-207
Received:
20 September 2018
Accepted:
16 October 2018
Published:
29 October 2018
Abstract: One of the most important goals for all countries is to maintain sustainable growth with low inflation. As a result, each government is fighting high inflation. To stabilize the rate of inflation, it is interesting to study its different sources and monetary policy has one. This study has two objectives: the first objective is to analyze the effect of monetary policy on inflation and the second objective is to examine the nature of the relationship between money supply and inflation in Cameroon. This study uses annual time series data from 1980 to 2016. Johansen's cointegration test was used to find the relationship between the money supply and inflation. The ARDL estimation method was used to analyze the effect of the money supply on inflation in Cameroon and the Toda and Yamamoto's causality test was used to test the causality between money supply and inflation. The results show that, there is a long-run equilibrium relationship between the money supply and inflation; the money supply has a positive and significant effect on inflation in Cameroon and there is one-way causality from money supply to inflation. This study shows that inflation has a monetary source in Cameroon. Thus, monetary policy should be planned to maintain price stability by controlling the growth of the money supply in the Cameroonian economy.
Abstract: One of the most important goals for all countries is to maintain sustainable growth with low inflation. As a result, each government is fighting high inflation. To stabilize the rate of inflation, it is interesting to study its different sources and monetary policy has one. This study has two objectives: the first objective is to analyze the effect...
Show More
-
A Systems Balance Approach Against Systematic Risks of China
Issue:
Volume 6, Issue 5, October 2018
Pages:
208-215
Received:
3 July 2018
Accepted:
10 September 2018
Published:
6 November 2018
Abstract: The current international and domestic situation is very complicated. Particularly modernization of China is an extremely complex systems project. Contradictions of imbalance in the systems must be solved by means of systems balance. Below we will take a look into the patterns of balance for systems movement, and the operation mode of the system balance approach against systematic risks of China. The change of systems (things) is always in a repeating process from imbalance to balance and re-balance. In this repeating process, there is a balance force that drives the contradictory movement of things and their change to correlate and interact with one another. A proper degree of system balance is a sign of wisdom to weigh pros and cons based on the interconnections of things. A state-level laboratory dedicated to social and economic systems’ integrated balance should be in place to meet the requirements for balanced market development. From the system balance perspective, risks and returns always exist together in the financial system. The key is to transfer risks that you are least sure of, reduce risks that cannot be transferred or are too expensive to transfer, and augment those that you can profit from, with minimum costs and maximum profits. The assets and debts in the financial system always follow the principle of equilibrium. To properly understand and handle the relations between assets and debts, equities and securities, we need to shift more attention from the scale to the quality of financial development, extend traditional financial functions of “deposit, trade facilitation and resource allocation” to new functions such as “corporate governance, signaling, and risk management”. We need to examine the RMB-USD relations in the context of the international community with a shared future. The internationalization of renminbi is not to challenge the leading role of the US dollar as an international currency, but to offer a necessary supplement and make constructive efforts for the balanced development of the international currency system.
Abstract: The current international and domestic situation is very complicated. Particularly modernization of China is an extremely complex systems project. Contradictions of imbalance in the systems must be solved by means of systems balance. Below we will take a look into the patterns of balance for systems movement, and the operation mode of the system ba...
Show More
-
Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises
Hu Guohui,
Zheng Meimei,
Zhao Le
Issue:
Volume 6, Issue 5, October 2018
Pages:
216-223
Received:
7 November 2018
Published:
8 November 2018
Abstract: Small and medium-sized enterprises (SMEs) in China are currently still facing serious lending constraints, especially long-term loan constraints. This paper empirically studies on how the accounting information quality and executives’ background of SMEs influence their credit availability and loan term structures. We use panel data from 2010 to 2015 of Chines SMEs financial report database, matched with the executive characteristic database. The findings suggest that with better accounting information quality or the executives’ financial or political background, SMEs’ short-term credit availability can be improved. Furthermore, the impact of executives’ financial background is the largest. As for the long-term credit availability, the quality of accounting information plays a more important role than the executives’ background. In addition, the interaction between quality of accounting information and executives’ background on SMEs’ credit availability varies in different terms of loans, showing supplementary effect for short-term loans and substitute effect for long-term loans.
Abstract: Small and medium-sized enterprises (SMEs) in China are currently still facing serious lending constraints, especially long-term loan constraints. This paper empirically studies on how the accounting information quality and executives’ background of SMEs influence their credit availability and loan term structures. We use panel data from 2010 to 201...
Show More
-
Study on the Current Status of China’s Food Security Based on Multiple Dimensions Measurement
Issue:
Volume 6, Issue 5, October 2018
Pages:
224-234
Received:
20 September 2018
Accepted:
19 October 2018
Published:
12 November 2018
Abstract: As a large agricultural country, food security is of vital importance to the national economy and people's livelihood. In recent years, food production has been constantly restricted in order to meet the needs of urbanization and economic development. And problems such as resource compression, cost increase and insufficient investment in science and technology have gradually surfaced. In order to guarantee the food production safety, this paper comprehensively analyzes the status of China's food security from four aspects: food availability, food access, food utilization and the stability of food security. Through comparative analysis, it is known that the overall situation of China's food security has been significantly improved. It is better than the average level of developing countries. China also has advantages when compared with other developing countries with large populations, but there is still a certain gap with the average level of developed countries. China's food security situation is not balanced in different dimensions. The food availability situation measured by indicators such as per capita food output and average dietary energy supply has significantly improved. The food access measured by per capita GDP, domestic food price index, prevalence of undernourishment and so on, enhances continuously. The global hunger index was significantly reduced in food utilization, and the condition of food utilization measured by clean drinking water sources and good sanitation facilities was significantly improved. The lower stability index of political stability, the higher domestic food price volatility and per capita food production variability are not conducive to the stability of food security.
Abstract: As a large agricultural country, food security is of vital importance to the national economy and people's livelihood. In recent years, food production has been constantly restricted in order to meet the needs of urbanization and economic development. And problems such as resource compression, cost increase and insufficient investment in science an...
Show More
-
Market Change and Policy Perfection in China
Issue:
Volume 6, Issue 5, October 2018
Pages:
235-245
Received:
3 July 2018
Accepted:
26 October 2018
Published:
19 November 2018
Abstract: This study adopt balanced way of thinking to analyze the changes in market conditions in the new era, particularly the changes in Chinese monetary conditions, financial conditions and credit condition as well as the perfection of policies. In response to the new circumstances and changes in market credit conditions, it is necessary to, from the ideological perspective, gain new understanding of the financial market to reflect our determined ideology, from the strategic perspective, to define and refine the tasks and objectives of financial system reform to reflect our strategic planning, and from the perspective of policy and technical methodology, to improve and diversify operating kits to take the initiative and enhance risk control ability. Some measurements improving and enriching policy and technical tool kits should be addressed in current economic works and in mid- and long development. China may have to define the tasks and goals of deepened financial structure reform, establish and perfect long-effective management mechanism, and create multi-dimensional and diverse financial ecology. To prevent asset bubbles, money supply control alone is not enough. It’s advised to regulate the stock and incremental capital through securitization, such as promoting stock asset-backed securitization to further revitalize the stock of assets of financial institutions in short team, and perfect the modern credit system in long team.
Abstract: This study adopt balanced way of thinking to analyze the changes in market conditions in the new era, particularly the changes in Chinese monetary conditions, financial conditions and credit condition as well as the perfection of policies. In response to the new circumstances and changes in market credit conditions, it is necessary to, from the ide...
Show More
