News Column

New Policy Modeling Findings Has Been Reported by E.M. Elsamadisy et al

June 6, 2014



By a News Reporter-Staff News Editor at Economics Week -- Current study results on Policy Modeling have been published. According to news originating from Doha, Qatar, by VerticalNews correspondents, research stated, "In the years before the global financial crisis of 2008-2010, Qatar experienced a huge build-up of liquidity surplus in the banking system, mainly driven by surging net capital inflows. This paper identifies various sources of interbank liquidity in Qatar and discusses the various implications of structural primary liquidity surplus for the money market in particular and the economy at large."

Our news journalists obtained a quote from the research, "The paper attempts to evaluate the Qatar Central Bank policy making and conduct during the pre- and post-crisis periods within a framework of the Austrian monetary overinvestment theories, and concludes that the central bank had forcibly committed several forced monetary policy mistakes, which resulted in a breakdown in the interest rate channel of the monetary policy transmission mechanism. This led to the inability of the central bank to control the interbank interest rate and to an accelerating inflation rate during the pre-crisis years. In contrast, a dramatic change in the central bank's monetary policy framework and a deliberate monetary policy mistake on behalf of the central bank resulted in a restoration of the interest rate channel of the monetary policy transmission mechanism, stabilization of the interbank interest rate close to the central bank's policy rate and a sharp deceleration in the inflation rate in the post-crisis period."

According to the news editors, the research concluded: "The paper concludes by offering brief policy recommendations."

For more information on this research see: Pre- versus post-crisis central banking in Qatar. Journal of Policy Modeling, 2014;36(2):330-352. Journal of Policy Modeling can be contacted at: Elsevier Science Inc, 360 Park Ave South, New York, NY 10010-1710, USA. (Elsevier - www.elsevier.com; Journal of Policy Modeling - www.elsevier.com/wps/product/cws_home/505735)

The news correspondents report that additional information may be obtained from E.M. Elsamadisy, Qatar Cent Bank, Dept. of Res & Monetary Policy, Doha, Qatar. Additional authors for this research include K.R. Alkhater and S. Abul Basher.

Keywords for this news article include: Doha, Asia, Qatar, Economics, Central Bank, Monetary Policy, Policy Modeling, Finance and Investment

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Source: Economics Week


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