Issues in Finance and Monetary Policy

The book investigates the contemporary functioning of financial institutions and monetary policies in order to assess their effects in different economic situations. It advances some proposals to improve their contribution towards a more stable and vigorous economy in the context of both developed and developing countries. The book includes important contributions on the theory and econometric testing of monetary policy strategies, hedging by firms, financial liberalization in Latin America and the role of financial institutions in promoting economic development.

Introduction; J.McCombie & C.R.Rodriguez Strong Uncertainty and How to Cope with it to Improve Action and Capacity; P.Davidson Inflation Targeting: Assessing the Evidence; A.Angeriz & P.Arestis Transparency Versus Openness in Monetary Policy; E.Carre Dynamic Analysis of a Monetary Policy Shock on Banking Behaviour; E.Le Heron Credibility of Interest Rate Policies in Eight EMS Countries: An Application of the Markov Regime-Switching of a Bivariate Autoregressive Model; P.Arestis & K.Mouratidis Why do Firms Hedge? A Review of the Evidence; A.Judge Concentration Versus Efficiency and Financial Liberalization in Latin American Banking; G.Chortareas, J.G.G.García & C.Girardone The Role of Financial Institutions in the Context of Economic Development; S.Basu