The Econometrics of Factor Loadings and Implications for Monetary Policy in a Small Open Economy (2005- 2020) – Sierra Leone

Emerson Abraham Jackson

Makale detayları

The Econometrics of Factor Loadings and Implications for Monetary Policy in a Small Open Economy (2005- 2020) – Sierra Leone

Yazarlar:

Emerson Abraham Jackson

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonomi

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.10 Issue 1, pp.19-35

Belge Tipi:

Makale

Yayın Tarihi:

1/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001284643

pISSN:

2148-3876

Anahtar kelimeler:

Özet:

 In this paper, the authors explored the interaction of macroeconomic variables with some form of vague interrelationships. The relevance of factor analysis has demonstrated an existing association between manifest and latent variables in helping the researchers come out with informed and justified suggestions that are relevant to inform effective policy decisions for the central bank action in Sierra Leone. We examine the relationships among some significant manifest and latent variables in a small open economy Sierra Leone using time series data spanning from 2005 to 2020. Both international crude oil prices and the local currency in circulation were found to be loadable under two factors domestic and external, while the exchange rate was observed to be loaded under the external factor. The outcome also proved that the effects of domestic and international economic shocks sudden but temporarily disrupted converged dissipated after six to eight months. The paper concludes that innovation and energy diversification are important for domestic and external stability in a small open economy.

 In this paper, the authors explored the interaction of macroeconomic variables with some form of vague interrelationships. The relevance of factor analysis has demonstrated an existing association between manifest and latent variables in helping the researchers come out with informed and justified suggestions that are relevant to inform effective policy decisions for the central bank action in Sierra Leone. We examine the relationships among some significant manifest and latent variables in a small open economy Sierra Leone using time series data spanning from 2005 to 2020. Both international crude oil prices and the local currency in circulation were found to be loadable under two factors domestic and external, while the exchange rate was observed to be loaded under the external factor. The outcome also proved that the effects of domestic and international economic shocks sudden but temporarily disrupted converged dissipated after six to eight months. The paper concludes that innovation and energy diversification are important for domestic and external stability in a small open economy.

 In this paper, the authors explored the interaction of macroeconomic variables with some form of vague interrelationships. The relevance of factor analysis has demonstrated an existing association between manifest and latent variables in helping the researchers come out with informed and justified suggestions that are relevant to inform effective policy decisions for the central bank action in Sierra Leone. We examine the relationships among some significant manifest and latent variables in a small open economy Sierra Leone using time series data spanning from 2005 to 2020. Both international crude oil prices and the local currency in circulation were found to be loadable under two factors domestic and external, while the exchange rate was observed to be loaded under the external factor. The outcome also proved that the effects of domestic and international economic shocks sudden but temporarily disrupted converged dissipated after six to eight months. The paper concludes that innovation and energy diversification are important for domestic and external stability in a small open economy.

 In this paper, the authors explored the interaction of macroeconomic variables with some form of vague interrelationships. The relevance of factor analysis has demonstrated an existing association between manifest and latent variables in helping the researchers come out with informed and justified suggestions that are relevant to inform effective policy decisions for the central bank action in Sierra Leone. We examine the relationships among some significant manifest and latent variables in a small open economy Sierra Leone using time series data spanning from 2005 to 2020. Both international crude oil prices and the local currency in circulation were found to be loadable under two factors domestic and external, while the exchange rate was observed to be loaded under the external factor. The outcome also proved that the effects of domestic and international economic shocks sudden but temporarily disrupted converged dissipated after six to eight months. The paper concludes that innovation and energy diversification are important for domestic and external stability in a small open economy.

Makale detayları

The Econometrics of Factor Loadings and Implications for Monetary Policy in a Small Open Economy (2005- 2020) – Sierra Leone

Yazarlar:

Emerson Abraham Jackson

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonomi

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.10 Issue 1, pp.19-35

Belge Tipi:

Makale

Yayın Tarihi:

1/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001284643

pISSN:

2148-3876

Bayesian Analysis

Economic Shocks

Exchange Rate

Factor Loadings

Manifest and Latent Variables

Sayı

Makale detayları

The Econometrics of Factor Loadings and Implications for Monetary Policy in a Small Open Economy (2005- 2020) – Sierra Leone

Yazarlar: Emerson Abraham Jackson

Yayıncı: Istanbul University

Ana Başlıklar: Ekonomi

Dergi: İktisat Politikası Araştırmaları Dergisi Vol.10 Issue 1, pp.19-35

Belge Tipi: Makale

Yayın Tarihi: 1/2023

Belge Dili: İngilizce

Document ID (Org No.): 2001284643

pISSN: 2148-3876

Bayesian Analysis

Economic Shocks

Exchange Rate

Factor Loadings

Manifest and Latent Variables

Sayı

Yazarlar:

Emerson Abraham Jackson

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonomi

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.10 Issue 1, pp.19-35

Belge Tipi:

Makale

Yayın Tarihi:

1/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001284643

pISSN:

2148-3876