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Central Bank Policies of Fragile Five Countries in the Covid-19 Process

Yıl 2022, Cilt: 17 Sayı: 68, 838 - 856, 01.11.2022
https://doi.org/10.19168/jyasar.1002021

Öz

The Covid-19 pandemic has been a trouble and deeply affected the economic conditions of countries. Economy administrators and particularly central banks have been tested seriously in this period. In this period, one of the essential tasks of central banks is to provide the need of liquidity of markets. However, the main objective of Central Banks is price stability. Monetary policies should be applied sensitively by central banks, especially in crisis periods. While liquidity needs of markets taking place, central banks intervene and effort to support declining liquidity. This study examined central banks' monetary policies in the fragile five countries (Turkey, Brasil, India, Indonesia, and South Africa). We investigated these countries' central bank policies, including interest rate, inflation, central bank reserve, exchange rate, and fragile states index in the pandemic period. We determined that the most fragile country among the five countries is Turkey according to the fragile states index, inflation, interest rate, and central bank reserve in the pandemic period.

Destekleyen Kurum

Yoktur

Proje Numarası

Yoktur

Teşekkür

Yoktur

Kaynakça

  • Akalin, G. I., & Prater, E. L. 2015. “The global crisis of the late 2000s and currency substitution: A study of three Eastern European economies Russia, Turkey and Ukraine.” Journal of Central Banking Theory and Practice, 4(2), 5-22.
  • Akbaş, Y. E. 2020. “The effects of exchange rate pass-through and cost channel on price level: The case of fragile five countries.” Applied Economics, 52(25), 2705-2722.
  • Akhlas, Adrian Wail. 2020. “Indonesia’s Forex Reserves Drop $9.4b in March as BI Steps Up Efforts to Stabilize Rupiah.” Jakarta Post, April 7, 2020. https://www.thejakartapost.com/news/2020/04/07/indonesias-forex-reserves-drop-9-4b-in-march-as-bi-steps-up-efforts-to-stabilize-rupiah.html (Accessed April 4, 2021).
  • Alexander, W. E., Baliño, M. T. J. & Enoch, M. C. 1995. “The adoption of indirect instruments of monetary policy.” IMF Occasional Paper No: 126 Washington DC, 1995.
  • Banco Central do Brasil [BCB] 2020. “Macroeconomic Overview Update.” https://www.bcb.gov.br/content/about/presentationstexts/BCB_Macroeconomic_Overview%20Update_%20XP_%20Live_%20BCB_Governor_Presentation_April_%204_%202020.pdf (Accessed April 4, 2021).
  • Bank Indonesia [BI] 2020. “Development of measures taken by BI in facıng COVID-19.” https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/Perkembangan-Langkah-Langkah-BI-dalam-Hadapi-COVID-19.aspx (Accessed March 3, 2021).
  • Bayraktar, Y., Taha, E. G. R. I., & Yildiz, F. 2016. “A causal relationship between oil prices current account deficit, and economic growth: an empirical analysis from fragile five countries.” Ecoforum Journal, 5(3) 29-44.
  • Bayat, T., Kayhan, S., & Taşar, İ. 2018. “Re-visiting fisher effect for fragile five economies.” Journal of Central Banking Theory and Practice, 7(2), 203-218.
  • Bhorat, H., Köhler, T., Oosthuizen, M., Stanwix, B., Steenkamp, F., & Thornton, A. 2020. “The Economics of Covid-19 in South Africa: Early Impressions.” DPRU Working Paper, 202004.
  • Central Bank of the Republic of Turkey [CBRT] 2021. ”Koronavirüsün Ekonomik ve Finansal Etkilerine Karşı Alınan Tedbirler.” https://www.tcmb.gov.tr/wps/wcm/connect/TR/TCMB+TR/Main+Menu/Duyurular/Koronavirus (Accessed March 4, 2021).
  • Chadwick, M. G. 2019. “Dependence of the “Fragile Five” and “Troubled Ten” emerging market financial systems on US monetary policy and monetary policy uncertainty.” Research in International Business and Finance, 49, 251-268.
  • Eco Flash 2020. “COVID-19: Key measures taken by governments and central bank” https://economic-research.bnpparibas.com/Views/DisplayPublication.aspx?type=document&IdPdf=38920 (Accessed April 3, 2021).
  • Fabris, N. 2018. “Challenges for modern monetary policy.” Journal of Central Banking Theory and Practice, 7(2), 5-24.
  • Goodhart, C. A. E. 2011. “The changing role of central banks.” Financial History Review, 18(2), 135-154.
  • International Monetary Fund [IMF] 2020. “Central Bank Support for Spot and Derivative Foreign Exchange Markets.” Special Series on COVID-19, February 19, 2021.
  • International Monetary Fund [IMF] 2021. “Central Bank Support to Financial Markets in the Coronavirus Pandemic.” Special Series on COVID-19, May 6, 2020.
  • Khan, A. 2016. “Central Bank Governance and the Role of Nonfinancial Risk Management. International Monetary Fund.” IMF Working Paper, WP/16/34.
  • Kırca, M., & Canbay, Ş. 2020. “Kırılgan Beşli Ülkeler için Phillips Eğrisi Analizi.” İktisadi İdari ve Siyasal Araştırmalar Dergisi, 5(12), 130-140.
  • Lord, J. 2013. “EM Currencies: The Fragile Five (Global Outluk) (pp. 15–19).” Morgan Stanley Research. Retrieved from http://graphics8.nytimes.com/packages/pdf/business/MorganStanleyFragileFive.pdf (Accessed April 18, 2021).
  • Mercan, D., & Canbay, Ş. 2020. “The Operation of Credit Channel in Fragile Five Countries.” Research Journal of Politics, Economics & Management, 8(1), 55-78.
  • Mukhlis, I., Hidayah, I., & Retnasih, N. R. 2020. “Interest Rate Volatility of the Federal Funds Rate: Response of the Bank Indonesia and its Impact on the Indonesian Economic Stability.” Journal of Central Banking Theory and Practice, 9(1), 111-133.
  • Olivia, S., Gibson, J., & Nasrudin, R. A. 2020. “Indonesia in the Time of Covid-19.” Bulletin of Indonesian Economic Studies, 56(2), 143-174.
  • Rai, A., Rojer Jr, G., & Susanna, E. 2021. “Central bank transparency and market reaction in Brazil, Chile, and Colombia.” Journal of Behavioral and Experimental Finance, 30, 100475.
  • Reserve Bank of India [RBI] 2020a. “Monetary Policy Report, April 2020.” https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/MPRAPRIL2020E3D4AD8245734F27B6C5688F22B4FA2F.PDF (Accessed April 5, 2021).
  • Reserve Bank of India [RBI] 2020b. “Monetary Policy Report, October 2020.” https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/MPR0910200CB2848C2D8A40758A1FB7AE110E3F16.PDF (Accessed April 5, 2021).
  • Simdi, H., & Seker, A. 2017. “Analysis of fragility levels of fragile five in terms of exchange rates.” PressAcademia Procedia, 3(1), 241-245.
  • Strategic Investment Research Unit [SIRU] 2020. “India's central bank announces more measures to fight Covid-19, April 30, 2020.” https://www.investindia.gov.in/team-india-blogs/indias-central-bank-announces-more-measures-fight-covid-19 (Accessed April 3, 2021).
  • The Fund for Peace [FFP] 2021. “Fragile States Index.” https://fragilestatesindex.org/data/ (Accessed March 27, 2021).
  • World Health Organization [WHO] 2021. “WHO Coranavirus (COVID-19) Dashboard.” https://covid19.who.int (Accessed April 4, 2021).
  • Önder, E., Taş, N., & Hepsen, A. 2015. “Economic performance evaluation of fragile 5 countries after the great recession of 2008-2009 using analytic network process and topsis methods.” Journal of Applied Finance & Banking, 5(1), 1-17.
  • Ümit, Ö. 2016. “Stationarity of real exchange rates in the “fragile five”: Analysis with structural breaks.” International Journal of Economics and Finance, 8(4), 254-270.
  • Ünver, M., & Doğru, B. 2015. “The Determinants Of Economic Fragility: Case of The Fragile Five Countries.” Akdeniz University Faculty of Economics & Administrative Sciences Faculty Journal, 15(31), 1-24.

Central Bank Policies of Fragile Five Countries in the Covid-19 Process

Yıl 2022, Cilt: 17 Sayı: 68, 838 - 856, 01.11.2022
https://doi.org/10.19168/jyasar.1002021

Öz

The Covid-19 pandemic has been a trouble and deeply affected the economic conditions of countries. Economy administrators and particularly central banks have been tested seriously in this period. In this period, one of the essential tasks of central banks is to provide the need of liquidity of markets. However, the main objective of Central Banks is price stability. Monetary policies should be applied sensitively by central banks, especially in crisis periods. While liquidity needs of markets taking place, central banks intervene and effort to support declining liquidity. This study examined central banks' monetary policies in the fragile five countries (Turkey, Brasil, India, Indonesia, and South Africa). We investigated these countries' central bank policies, including interest rate, inflation, central bank reserve, exchange rate, and fragile states index in the pandemic period. We determined that the most fragile country among the five countries is Turkey according to the fragile states index, inflation, interest rate, and central bank reserve in the pandemic period.

Proje Numarası

Yoktur

Kaynakça

  • Akalin, G. I., & Prater, E. L. 2015. “The global crisis of the late 2000s and currency substitution: A study of three Eastern European economies Russia, Turkey and Ukraine.” Journal of Central Banking Theory and Practice, 4(2), 5-22.
  • Akbaş, Y. E. 2020. “The effects of exchange rate pass-through and cost channel on price level: The case of fragile five countries.” Applied Economics, 52(25), 2705-2722.
  • Akhlas, Adrian Wail. 2020. “Indonesia’s Forex Reserves Drop $9.4b in March as BI Steps Up Efforts to Stabilize Rupiah.” Jakarta Post, April 7, 2020. https://www.thejakartapost.com/news/2020/04/07/indonesias-forex-reserves-drop-9-4b-in-march-as-bi-steps-up-efforts-to-stabilize-rupiah.html (Accessed April 4, 2021).
  • Alexander, W. E., Baliño, M. T. J. & Enoch, M. C. 1995. “The adoption of indirect instruments of monetary policy.” IMF Occasional Paper No: 126 Washington DC, 1995.
  • Banco Central do Brasil [BCB] 2020. “Macroeconomic Overview Update.” https://www.bcb.gov.br/content/about/presentationstexts/BCB_Macroeconomic_Overview%20Update_%20XP_%20Live_%20BCB_Governor_Presentation_April_%204_%202020.pdf (Accessed April 4, 2021).
  • Bank Indonesia [BI] 2020. “Development of measures taken by BI in facıng COVID-19.” https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/Perkembangan-Langkah-Langkah-BI-dalam-Hadapi-COVID-19.aspx (Accessed March 3, 2021).
  • Bayraktar, Y., Taha, E. G. R. I., & Yildiz, F. 2016. “A causal relationship between oil prices current account deficit, and economic growth: an empirical analysis from fragile five countries.” Ecoforum Journal, 5(3) 29-44.
  • Bayat, T., Kayhan, S., & Taşar, İ. 2018. “Re-visiting fisher effect for fragile five economies.” Journal of Central Banking Theory and Practice, 7(2), 203-218.
  • Bhorat, H., Köhler, T., Oosthuizen, M., Stanwix, B., Steenkamp, F., & Thornton, A. 2020. “The Economics of Covid-19 in South Africa: Early Impressions.” DPRU Working Paper, 202004.
  • Central Bank of the Republic of Turkey [CBRT] 2021. ”Koronavirüsün Ekonomik ve Finansal Etkilerine Karşı Alınan Tedbirler.” https://www.tcmb.gov.tr/wps/wcm/connect/TR/TCMB+TR/Main+Menu/Duyurular/Koronavirus (Accessed March 4, 2021).
  • Chadwick, M. G. 2019. “Dependence of the “Fragile Five” and “Troubled Ten” emerging market financial systems on US monetary policy and monetary policy uncertainty.” Research in International Business and Finance, 49, 251-268.
  • Eco Flash 2020. “COVID-19: Key measures taken by governments and central bank” https://economic-research.bnpparibas.com/Views/DisplayPublication.aspx?type=document&IdPdf=38920 (Accessed April 3, 2021).
  • Fabris, N. 2018. “Challenges for modern monetary policy.” Journal of Central Banking Theory and Practice, 7(2), 5-24.
  • Goodhart, C. A. E. 2011. “The changing role of central banks.” Financial History Review, 18(2), 135-154.
  • International Monetary Fund [IMF] 2020. “Central Bank Support for Spot and Derivative Foreign Exchange Markets.” Special Series on COVID-19, February 19, 2021.
  • International Monetary Fund [IMF] 2021. “Central Bank Support to Financial Markets in the Coronavirus Pandemic.” Special Series on COVID-19, May 6, 2020.
  • Khan, A. 2016. “Central Bank Governance and the Role of Nonfinancial Risk Management. International Monetary Fund.” IMF Working Paper, WP/16/34.
  • Kırca, M., & Canbay, Ş. 2020. “Kırılgan Beşli Ülkeler için Phillips Eğrisi Analizi.” İktisadi İdari ve Siyasal Araştırmalar Dergisi, 5(12), 130-140.
  • Lord, J. 2013. “EM Currencies: The Fragile Five (Global Outluk) (pp. 15–19).” Morgan Stanley Research. Retrieved from http://graphics8.nytimes.com/packages/pdf/business/MorganStanleyFragileFive.pdf (Accessed April 18, 2021).
  • Mercan, D., & Canbay, Ş. 2020. “The Operation of Credit Channel in Fragile Five Countries.” Research Journal of Politics, Economics & Management, 8(1), 55-78.
  • Mukhlis, I., Hidayah, I., & Retnasih, N. R. 2020. “Interest Rate Volatility of the Federal Funds Rate: Response of the Bank Indonesia and its Impact on the Indonesian Economic Stability.” Journal of Central Banking Theory and Practice, 9(1), 111-133.
  • Olivia, S., Gibson, J., & Nasrudin, R. A. 2020. “Indonesia in the Time of Covid-19.” Bulletin of Indonesian Economic Studies, 56(2), 143-174.
  • Rai, A., Rojer Jr, G., & Susanna, E. 2021. “Central bank transparency and market reaction in Brazil, Chile, and Colombia.” Journal of Behavioral and Experimental Finance, 30, 100475.
  • Reserve Bank of India [RBI] 2020a. “Monetary Policy Report, April 2020.” https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/MPRAPRIL2020E3D4AD8245734F27B6C5688F22B4FA2F.PDF (Accessed April 5, 2021).
  • Reserve Bank of India [RBI] 2020b. “Monetary Policy Report, October 2020.” https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/MPR0910200CB2848C2D8A40758A1FB7AE110E3F16.PDF (Accessed April 5, 2021).
  • Simdi, H., & Seker, A. 2017. “Analysis of fragility levels of fragile five in terms of exchange rates.” PressAcademia Procedia, 3(1), 241-245.
  • Strategic Investment Research Unit [SIRU] 2020. “India's central bank announces more measures to fight Covid-19, April 30, 2020.” https://www.investindia.gov.in/team-india-blogs/indias-central-bank-announces-more-measures-fight-covid-19 (Accessed April 3, 2021).
  • The Fund for Peace [FFP] 2021. “Fragile States Index.” https://fragilestatesindex.org/data/ (Accessed March 27, 2021).
  • World Health Organization [WHO] 2021. “WHO Coranavirus (COVID-19) Dashboard.” https://covid19.who.int (Accessed April 4, 2021).
  • Önder, E., Taş, N., & Hepsen, A. 2015. “Economic performance evaluation of fragile 5 countries after the great recession of 2008-2009 using analytic network process and topsis methods.” Journal of Applied Finance & Banking, 5(1), 1-17.
  • Ümit, Ö. 2016. “Stationarity of real exchange rates in the “fragile five”: Analysis with structural breaks.” International Journal of Economics and Finance, 8(4), 254-270.
  • Ünver, M., & Doğru, B. 2015. “The Determinants Of Economic Fragility: Case of The Fragile Five Countries.” Akdeniz University Faculty of Economics & Administrative Sciences Faculty Journal, 15(31), 1-24.
Toplam 32 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Bölüm Makaleler
Yazarlar

Süreyya Kovacı 0000-0001-7718-0343

Süleyman Şen 0000-0002-4851-2270

Proje Numarası Yoktur
Yayımlanma Tarihi 1 Kasım 2022
Yayımlandığı Sayı Yıl 2022 Cilt: 17 Sayı: 68

Kaynak Göster

APA Kovacı, S., & Şen, S. (2022). Central Bank Policies of Fragile Five Countries in the Covid-19 Process. Yaşar Üniversitesi E-Dergisi, 17(68), 838-856. https://doi.org/10.19168/jyasar.1002021
AMA Kovacı S, Şen S. Central Bank Policies of Fragile Five Countries in the Covid-19 Process. Yaşar Üniversitesi E-Dergisi. Kasım 2022;17(68):838-856. doi:10.19168/jyasar.1002021
Chicago Kovacı, Süreyya, ve Süleyman Şen. “Central Bank Policies of Fragile Five Countries in the Covid-19 Process”. Yaşar Üniversitesi E-Dergisi 17, sy. 68 (Kasım 2022): 838-56. https://doi.org/10.19168/jyasar.1002021.
EndNote Kovacı S, Şen S (01 Kasım 2022) Central Bank Policies of Fragile Five Countries in the Covid-19 Process. Yaşar Üniversitesi E-Dergisi 17 68 838–856.
IEEE S. Kovacı ve S. Şen, “Central Bank Policies of Fragile Five Countries in the Covid-19 Process”, Yaşar Üniversitesi E-Dergisi, c. 17, sy. 68, ss. 838–856, 2022, doi: 10.19168/jyasar.1002021.
ISNAD Kovacı, Süreyya - Şen, Süleyman. “Central Bank Policies of Fragile Five Countries in the Covid-19 Process”. Yaşar Üniversitesi E-Dergisi 17/68 (Kasım 2022), 838-856. https://doi.org/10.19168/jyasar.1002021.
JAMA Kovacı S, Şen S. Central Bank Policies of Fragile Five Countries in the Covid-19 Process. Yaşar Üniversitesi E-Dergisi. 2022;17:838–856.
MLA Kovacı, Süreyya ve Süleyman Şen. “Central Bank Policies of Fragile Five Countries in the Covid-19 Process”. Yaşar Üniversitesi E-Dergisi, c. 17, sy. 68, 2022, ss. 838-56, doi:10.19168/jyasar.1002021.
Vancouver Kovacı S, Şen S. Central Bank Policies of Fragile Five Countries in the Covid-19 Process. Yaşar Üniversitesi E-Dergisi. 2022;17(68):838-56.