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Rebuttal of Dr. Usamah Uthman's Review in Global Finance Journal No 22 (2011) pp 80–81☆ 1.

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Keywords
  • Y3 - Book Reviews (Unclassified)
Disciplines
  • Economics
  • Political Science

Abstract

Rebuttal of Dr. Usamah Uthman's Review in Global Finance Journal No 22 (2011) pp 80–81 creation. Conversely, Saudi Riyals are extinguished out of the system when SR are converted into dollars and expressly highlights the overwhelming importance of the net domestic flows through government spending, Global Finance Journal 24 (2013) 98–100 Contents lists available at SciVerse ScienceDirect Global Finance Journal as opposed to commercial bank's claims on the private sector in the analysis of factors affecting the changes in broad Money Supply M3 in Saudi Arabia. SAMA has gradually evolved certain primary responsibilities for itself, as well as asserting its independence in the use of certain monetary tools, and shared others with the Ministry of Finance (pp.78–79, 83). SAMA has indeed been operating on money-supply rule (changes in required reserves, deposit to loan ratios, setting repo and reverse-repo rates), as opposed to an interest-rate rule due to itsfixed exchange rate policy. There are different strands of opinion on the effectiveness of fixed as transmitted outside theKingdom. The Saudi economy is not a closed one (p.82). Bank's deposits are generated primarily from government expenditures which flow into the accounts of the private sector. Table 4.5 (p.95) Rebuttal Rebuttal of Dr. Usamah Uthman's Review in Global Finance Journal No 22 (2011) pp 80–81☆ 1. The reviewer's definition of business cycles is correct in terms of actual vs. potential GDP during booms and recessions. Figure 2.2 indicates exactly these swings for different eras of Saudi GDP, and not income flows. The different underlying reasons for this volatility are explained. Figure 2.3 demonstrates the clear inter-relationships of all three factors affecting Saudi Arabian economy (govt. expenditure, oil revenues, and flows into savings/investments), as well as the important element of foreign owned factor resources (remittances) affecting the Saudi economy. The table that follows illustrates the actual magnitude

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