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The ability of the agriculture sector, which is exposed to climate hazards, to cope with climate challenges and to strive in spite of them, is conceptualized as the resilience of agriculture. In enhancing climate-resilient agriculture, the cash reserve ratio (CRR) is generally perceived to serve two crucial functions: first, encouraging banks to allocate credit to agriculturalists for climate-resilient agricultural practices; second, enhancing agriculturalists’ ability to sustain agricultural output growth in spite of climate crises. In light of this, we conducted an ex post evaluation of the effect of the currently in-use CRR on bank loans to climate-challenged Nigeria’s agriculture sector for climate-resilient agricultural practices. Additionally, this study investigates the CRR’s impact(s) on agricultural output growth amidst climate challenges. Other additional independent variables include monetary policy rate, government capital expenditures on agriculture, and government recurrent expenditures on agriculture, as well as temperature, precipitation, and the renewable energy supply. Using annual data from 1990 to 2022, the results from an autoregressive, distributed lag approach suggest that the standard CRR stipulated by the Central Bank of Nigeria in the present era of climate change cannot entirely sustain climate-resilient agriculture, evident in the present study’s discoveries on its inability to perform its two major functions (credit and growth) in enhancing agricultural resilience. These findings highlight the need for the green differentiation of the CRR to ensure its effective utilization in enhancing climate resilience.

The increasing share of renewable energy sources for electricity, driven by variable output technologies such as wind and solar photovoltaics, is expected to have an impact on the operational reserve requirements of power systems. This study applies a probabilistic approach to estimate reserve requirements and establishes a methodology that makes it possible to distinguish between different categories of reserves based on the imbalance drivers of wind power. The methodology is based on sizing fast-response reserves based on the distribution of output fluctuations inside the settlement period, and sizing slow-response reserves based on the distribution of the average prediction error over the settlement period. The main advantage of this methodology is a reduction of the fast-response reserves, which are generally assessed as expensive compared to slow-response reserves. This approach is applied in a case study and compared with alternative strategies. The results for 500 MW of wind power installed in a North Sea country confirm these reductions and show that with the suggested approach the required fast-response and slow-response reserves, respectively, amount to 7 and 23–26% of the installed wind power capacity.

The conventions of monetary theory assumethe central banking system (CBS) as the starting point forachieving the stability and efficiency of the financialsystem. This paper stresses the stability-efficiency thesisbased on the Austrian business cycle theory (ABCT). Itargues that the stability-efficiency thesis under CBS poses aparadox for two main reasons. First, central banks' interestrate handling causes business cycles, yielding theintertemporal discoordination of the money and goodsmarkets. Second, a central bank's lender-of-last-resort roleis an incentive to call for further interest rate handling,making the chance of smooth business cycles difficult orimpossible. This paradox is empirically analyzed anddiscussed through the True Money Supply (TMS)performance in the United States's business cycle phasesbetween 1975 and 2022. Consistent with the ABCT, theresearch results unlock the paradox by showing that CBScauses business cycles. Some policy implications areoutlined for further research and revision of monetarytheory.

The degree to which the banking sector opens up will immediately impact the structure of the national financial system, which will then directly influence the transmission mechanism and effect of monetary policy because it is the fundamental link in the financial system. This study describes the DSGE model of two nations with heterogeneous banks in light of the disparities in global capital flows and loan restrictions between Chinese and foreign banks. DSGE stands for Dynamic Stochastic General Equilibrium. The results show that (1) foreign banks can lessen the net worth shocks of local banks when they are subject to negative shocks to their net worth by injecting international capital flows. (2) The buffer mechanism of foreign banks will obstruct the transmission of monetary policy and partially offset its policy effects. (3) The buffer mechanism of foreign banks has a more pronounced interference effect on monetary policy when facing negative shocks to their net worth. The management of foreign banks is increasingly loosening as China’s financial opening up quickens. The findings of this paper have policy implications for how to seize the dividends brought by financial openness and control the interference with monetary policy beyond the advantages of foreign banks in stabilizing economic fluctuations.

The study examines monetary policies instruments impact on stock market volatility in Nigeria for the period of 1993-2022. The study identified the independent variables, namely; reserve requirement (RR), cash reserve ratio (CRR), discount rate (DR) and money supply (MS) which were analyzed in relation to stock market volatility proxied with all share index volatility (ASIV). The data was analyzed with descriptive statistics, correlation matrix several diagnostics tests (VIF, validity test, ADF and Johansen tests) and the multiple regression analysis. The findings revealed that RR, CRR and MS have significant effect on ASIV while DR has insignificant effect on ASIV in Nigeria. It was concluded that reserve requirement, discount rate and money supply exert significant effect on Nigerian economy. Thus, it thereby recommended that management of CBN should put modalities in place to aggressively control ASIV in Nigeria. CBN should put measures in place to increase CRR. This will provide banks opportunity to fund economic transaction in the Nigerian economy, thereby reducing ASIV.

It is generally stated that the fractional-reserve banking system (FRBS) is consistent with sustainable economic growth and development. While it assumes that depositors will not be a joint demand who will claim all their money simultaneously, it supposes that a monetary aggregate greater than the monetary base will not harm economic performance. However, the FRBS's call to central banks casts doubt on the sustainability argument and its ethical support. This article explores the FRBS from the ethics of private property, proving a radically different course to promote sustainable economic growth and development. After reviewing and discussing the ethics of private property for the FRBS and its call for central banks, the case of fiat inflation and business cycles clarifies the narrow relationship between ethics and sustainability. These findings are applied to some modern ethical dilemmas around the FRBS, proving novel avenues for policy reform and research opportunities.

This paper examines the impact of monetary policy instruments such as discount rate, reserve requirement and liquidity requirement on bank credit to the private sector in the Kingdom of Eswatini. Monthly data sourced from the Central Bank of Eswatini and Eswatini Central Statistics Office is used for the period January 2000 to December 2017. Using the Johansen cointegration test and Vector Error Correction Model, our results show that: there is one cointegration in the model and the current levels of the discount rate, reserve requirement and liquidity requirement bear a negative and significant effect to bank credit to the private sector. This indicates that the three instruments are not supportive to economic growth and they are not optimal to stimulate credit. Applying the Quadratic approach, findings of this study reveal that the optimal monetary policy mix (thresholds) to stimulate bank credit to the private sector while maintaining inflation within reasonable levels is 5.42% for the discount rate, 4.03% for the reserve requirement, 12.48% for the liquidity requirement. The study recommends that the Central Bank of Eswatini should always take into account the existence of trade-off in monetary policy instruments results in order to stimulate bank lending to the private sector.

If fractional-reserve demand deposits are common, and illegitimate, an obvious flaw in the banking system is exposed. However, this article maintains that the only reason why demand deposits may be considered illegitimate is because of a way of defining them that renders them almost irrelevant. This article provides a response to Bagus et al. (J Bus Ethics, Forthcoming, 2014), and identifies examples of how they misrepresent Evans (J Bus Ethics, Forthcoming, 2013). It also provides further considerations on the tradeoffs relating to the availability of a deposit; methodological subjectivism; and the potential for hybrid contracts. Deposit and loan contracts may be hard to mix, but the actual results of doing so should not be ignored.

PurposeThis paper examines the impact of using the reserve requirements, combined with foreign exchange (FX) intervention, as key instruments in an inflation-targeting framework.Design/methodology/approachIn the context of a dynamic stochastic general equilibrium (DSGE) framework and using Bayesian techniques, the authors estimate a model for the Indonesian economy using quarterly data spanning the period 2005Q2–2019Q4.FindingsThe reserve requirement is found to assume a complementary role to that of the interest rate policy and FX intervention when used to stabilise the macroeconomy.Originality/valueThis paper provides a benchmark for other emerging countries that consider adopting the inflation targeting framework and impose an FX intervention as part of their monetary policy.

This article contributes to a recent debate between Barnett and Block (J Bus Ethics 88(4): 711–716, 2009), Bagus and Howden (J Bus Ethics 90(3): 399–406, 2009), Barnett and Block (J Bus Ethics 100: 299–238, 2011), Cachanosky (J Bus Ethics 104: 219–221, 2011) and Bagus and Howden (J Bus Ethics 106: 295–300, 2012a) regarding the conceptual distinction between demand deposits and time deposits. It is argued that from an economic perspective there is nothing inherently fraudulent or illegitimate about deposit accounts that are available 'on demand', but that this relies on certain contractual provisions. Particular attention is drawn to option clauses and withdrawal clauses, which \"solve\" the problems raised by Barnett and Block, and Bagus and Howden. Previous authors have also neglected the asset side of banks balance sheets, and this is shown to further justify the legitimacy of fractional reserve banking.