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dc.contributor.authorOfoi, Mark
dc.contributor.authorSharma, Parmendra
dc.date.accessioned2021-10-11T03:28:49Z
dc.date.available2021-10-11T03:28:49Z
dc.date.issued2021
dc.identifier.issn1911-8066en_US
dc.identifier.doi10.3390/jrfm14090449en_US
dc.identifier.urihttp://hdl.handle.net/10072/408774
dc.description.abstractThis is the first study to systematically assess the significance of the standard money multiplier vis-à-vis the bank credit transmission channel in the case of Pacific Island Economies, focusing on Papua New Guinea. The vector autoregressive model comprising six variables—interest rate, inflation rate, loans, deposits, reserve money, and real output—was estimated using quarterly data for the period 1980q1 to 2017q4. We applied the ordinary least squares (OLS) method to estimate the system of vector autoregressions (VARs). The estimation was conducted for the full and sub-sample periods. From the impulse response functions generated, the results suggest that the money multiplier does not hold and that the transmission to bank credit appears weak. It seems that the ability of the Central Bank to make loanable funds available through its conduct of monetary policy may not enhance private sector credit. On the other hand, there appears to be a significant and positive association between bank deposits and credit, suggesting that bank deposits and credit are endogenous and demand driven. View Full-Texten_US
dc.description.peerreviewedYesen_US
dc.languageEnglishen_US
dc.publisherMDPIen_US
dc.relation.ispartofpagefrom449en_US
dc.relation.ispartofissue9en_US
dc.relation.ispartofjournalJournal of Risk and Financial Managementen_US
dc.relation.ispartofvolume14en_US
dc.subject.fieldofresearchApplied economicsen_US
dc.subject.fieldofresearchBanking, finance and investmenten_US
dc.subject.fieldofresearchcode3801en_US
dc.subject.fieldofresearchcode3502en_US
dc.subject.keywordsSocial Sciencesen_US
dc.subject.keywordsBusiness, Financeen_US
dc.subject.keywordsBusiness & Economicsen_US
dc.subject.keywordsmonetary policyen_US
dc.subject.keywordsmoney multiplieren_US
dc.titleDoes the Money Multiplier Hold in Pacific Island Countries? The Case of Papua New Guineaen_US
dc.typeJournal articleen_US
dc.type.descriptionC1 - Articlesen_US
dcterms.bibliographicCitationOfoi, M; Sharma, P, Does the Money Multiplier Hold in Pacific Island Countries? The Case of Papua New Guinea, Journal of Risk and Financial Management, 2021, 14 (9), pp. 449en_US
dcterms.licensehttps://creativecommons.org/licenses/by/4.0/en_US
dc.date.updated2021-10-07T23:31:39Z
dc.description.versionVersion of Record (VoR)en_US
gro.rights.copyright© 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.en_US
gro.hasfulltextFull Text
gro.griffith.authorSharma, Parmendra P.


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