The economic sanctions introduced by the United States and European Union against Russia since 2014 have specifically targeted Russia’s financial system, while having significant negative...Show moreThe economic sanctions introduced by the United States and European Union against Russia since 2014 have specifically targeted Russia’s financial system, while having significant negative consequences for Russia’s macroeconomic position. Yet, today the Russian financial system continues to function in a stable manner while inflation is low for modern Russian standards. The Central Bank of Russia (CBR) is the main actor responsible for guaranteeing the stability of the Russian financial system and has used a range of monetary and institutional policies to do so. Therefore, this research aims to explain the monetary and institutional policies pursued by the CBR in response to economic sanctions in the context of Russia’s political economy. The research uses process tracing in order to analyse the policy decisions by the CBR used since 2014 and explain them in the context of developments in Russia’s political economy in recent decades. The research finds that the CBR’s monetary policy is different compared to earlier crises, but not novel as many policy decisions can be traced back to developments in the CBR’s policies over the last decade. Meanwhile, the CBR’s institutional policies can be linked to developments in Russia’s political economy, as they are increasingly aimed at sterilising the Russian economy from external shocks. Therefore, even though the CBR’s crisis response can be seen as successful from the perspective of Russian policymakers, the content of the policies is not surprising considering broader developments in Russia’s political economy.Show less
Since the creation of the European monetary union, countries across the globe have been wondering whether or not they too should form a monetary union. This thesis will examine to what extent it is...Show moreSince the creation of the European monetary union, countries across the globe have been wondering whether or not they too should form a monetary union. This thesis will examine to what extent it is a good idea for four Latin American countries to form a monetary union. The countries in question are Colombia, Chile, Peru and Brazil. These countries have been chosen because similar to the EMU, they share similar characteristics that are essential for the formation of a monetary union. This thesis will look a key questions regarding whether or not these countries should do it, if it’s optimal and if they can form an optimal currency area. To answer these questions, this thesis will look at macroeconomic variables including inflation and government debt. The combination of academic sources and hard economic data will ensure that the question can be answered in a clear and consistent manner. At the end of this thesis there will be a general conclusion whether or not these countries should form a monetary union and if this can become optimal.Show less
The Global Financial crisis of 2008 reached countries all around the world while the United States and Europe experienced their worst economic contraction in the last 75 years. There was a fear...Show moreThe Global Financial crisis of 2008 reached countries all around the world while the United States and Europe experienced their worst economic contraction in the last 75 years. There was a fear that the economic turmoil would also severely impact Latin American countries, which had already experienced several crises in recent decades. However, what baffled many experts was how Latin America reacted to the crisis of 2008. Contrary to the reservations of the experts, Latin America emerged from the crisis with only limited damage. In this paper, the impacts of the crisis and the regions reaction to the economic contraction will be analysed in the context of Mexico and Brazil. The aim is to compare the two countries to establish a thorough understanding of the crisis and its country specific implication while providing an answer to the surprising economic resilience of Latin American countries.Show less
This thesis demonstrates the reasons and motives of Hong Kong authorities to institute a Currency Board System in 1983. These motivations are discussed and placed in the context of the...Show moreThis thesis demonstrates the reasons and motives of Hong Kong authorities to institute a Currency Board System in 1983. These motivations are discussed and placed in the context of the international debate.Show less
This thesis contains comparative analyses between deflation in Japan in the 1990s and the current disinflation/deflation in the European Union in the period 2008-2014. This thesis will especially...Show moreThis thesis contains comparative analyses between deflation in Japan in the 1990s and the current disinflation/deflation in the European Union in the period 2008-2014. This thesis will especially focus on the role of financial authorities in both Japan and the EU, and the measures they have taken to attack the issue of deflation. A light will be shed on the definition of deflation and on the debate on the causes, consequences and approaches on deflation in both Japan as well as the EU. Also a closer look will be taken on why several measures, taken by the financial authorities worked or did not work, especially on the areas of internal price-stability to raise public demand, and on the area of currency-appreciation to boost external demand.Show less
