📈 economics

Time-Varying Monetary–Fiscal Policy Interaction and Inflation Dynamics: Evidence from Indonesia using a TVP-VAR-SV Approach

Using a Time-Varying Parameter Vector Autoregression with Stochastic Volatility (TVP-VAR-SV) framework on Indonesian data from 2000 to 2025, this study finds that inflation dynamics have increasingly shifted from monetary to fiscal drivers, particularly following the post-pandemic fiscal expansion, thereby validating the Fiscal Theory of the Price Level and suggesting that effective monetary normalization requires coordinated fiscal consolidation.

Abul Hasan Umar, Firman Taufik, Sulaiha Ali2026-06-30
📈 economics

Evidence of the Existence and Significance of Political Business Cycles in South Africa

Using a quantile regression framework, this study finds that South Africa exhibits a fragmented political business cycle where fiscal authorities pursue expansionary policies during elections while monetary authorities adopt contractionary measures to maintain stability, with both effects being moderate, heterogeneous, and significantly constrained by institutional quality and government effectiveness.

Khwazi Magubane2026-06-29
📈 economics

Nonlinear effects of lending rates on credit risk in microfinance institutions: evidence from Peruvian municipal savings and credit banks

This study analyzes Peruvian microfinance institutions from 2021 to 2025 and finds a U-shaped relationship between lending rates and credit risk, identifying an optimal rate of 29.21% beyond which further rate increases significantly deteriorate portfolio quality.

Felix Segundo Castillo-Vera, Gloria Tavita Mantilla-Varas, Luis Alberto Muñoz-Díaz2026-06-29
📈 economics

Cash transfers as a social protection tool and their ripple effects in rural Africa: A scoping review from 17 countries in Africa

This scoping review of 40 studies across 17 African countries finds that while cash transfers effectively stimulate local economies and boost employment for ultra-poor households, they also generate complex ripple effects such as inflation and social tensions, underscoring the need for careful recipient selection to maximize benefits and minimize negative spillovers.

Emefa Tonorgbevi AWUKU, Kwame Asamoah KWARTENG, Stephen Elvis AMPAH2026-06-29