This study aims to evaluate the relationship between financial resilience, exchange rate, inflation, and economic growth from 1996 to 2022 using secondary data from the World Bank. The analysis method uses vector autoregressive to understand the causality dynamics between these variables. The results show that past economic growth positively impacts current economic conditions, but an increase in the exchange rate can hinder economic growth. The exchange rate also tends to be influenced by previous values, but high economic growth does not always increase the exchange rate. Previous conditions significantly affect financial resilience and can be strengthened by a strong currency. Meanwhile, inflation has an inverse relationship with economic growth, where past inflation seems to suppress current inflation, which price stabilization policies can cause. From an institutional economics perspective, this study provides an understanding of the interaction between various economic factors in the structural framework and policies that regulate economic activities. The impulse response function (IRF) shows that economic growth can react strongly to sudden changes, although this reaction may not last long. The exchange rate fluctuates with economic changes, reflecting market optimism and uncertainty. Financial resilience may be strong initially but may weaken over time, indicating the need for policies to strengthen the financial system to ensure economic stability. Furthermore, the role of social capital in economic resilience is highlighted as it can amplify the positive effects of a robust institutional framework by fostering trust and collaboration among economic actors. Inflation reacts differently to economic changes, challenging policymakers to balance growth and price stability. Overall, the IRF provides insights into how economic variables interact with each other and react to sudden changes, albeit with some uncertainty in the estimates. The forecast error decomposition variance (FEVD) analysis in this study reveals that internal factors initially influence economic growth, but over time, external factors such as the exchange rate, financial resilience, and inflation come into play. The exchange rate, which was initially volatile due to internal factors, becomes increasingly influenced by economic growth, indicating a close relationship between the economy and the foreign exchange market. From an institutional economics perspective, financial resilience, which was initially stable due to internal factors, becomes increasingly dependent on global economic conditions, suggesting the importance of a solid institutional framework for maintaining economic stability. In addition, inflation, which was initially explained by economic growth and exchange rates, has gradually become more influenced by financial resilience, indicating the importance of effective monetary policy in controlling inflation. This study highlights the importance of understanding how economic variables influence each other for effective economic governance. Integrating institutional economics and social capital perspectives provides a comprehensive framework for enhancing financial resilience and promoting sustainable economic development in Indonesia.

This study examines the determinants of inflation in Tunisia from 1998 to 2023, with a particular focus on the role of fiscal policy. The study analyzes the long-run and short-run relationships between inflation and key macroeconomic variables, including government expenditure, government revenue, money supply, balance of trade, and budget deficits using ARDL model. The empirical findings reveal that budget deficits have a significant and positive impact on inflation, underscoring the critical role of fiscal imbalances in driving price instability. In contrast, government expenditure, government revenue, money supply, and balance of trade do not exhibit statistically significant long-term effects on inflation. The results highlight the importance of fiscal discipline and effective coordination between fiscal and monetary policies to achieve price stability. These findings provide valuable insights for policymakers in Tunisia and other developing economies facing similar inflationary pressures, emphasizing the need for prudent fiscal management and structural reforms to mitigate inflation volatility and ensure macroeconomic stability.

To fight inflation, European Central Bank (ECB) announced 10 successive interest rate hikes, starting on 27 July 2022, igniting an unprecedented widening of interest rate spreads in the euro area (ΕΑ). Greek banks, however, recorded among the highest interest rate spreads, far exceeding ΕΑ median and weighted average. Indeed, we document a strong asymmetric response of Greek banks to ECB interest rate hikes, with loan interest rates rising immediately, whilst deposit interest rates remained initially unchanged and then rose sluggishly. As a result, the interest rate spread hit one historical record after another. Greek systemic banks, probably taking advantage of the high concentration and low competition in the domestic sector benefited from key ECB interest rate hikes, recording gigantic increases in net interest income (NII), and consequently, substantial profits (almost €7.4 billion in the 2022–2023 biennium). Such excessive accumulation of profits (that deteriorates the living conditions of consumers) by the banking system could be called the inflation of “banking greed”, or bankflation. This new source of inflation created by the oligopolistic structure of the Greek banking sector counterworks the very reason for ECB interest rate increases and requires certain policy analysis recommendations in coping with it.

This research explores the intricate relationship between digitalization, economic development, and non-cash payments in the ASEAN-7 countries over a ten-year period from 2011 to 2020. Focusing on factors such as commercial bank branches, broad money, and inflation, the study employs panel data regression analysis to investigate their impact on automated teller machine (ATM) usage. The findings reveal that commercial bank branches significantly influence ATM usage, emphasizing the role of accessibility, services, and technological preferences. Broad money also shows a significant impact on ATM transactions, reflecting the interplay between fund availability and non-cash transactions. However, inflation does not exhibit a direct influence on ATM usage. The research underscores the importance of maintaining service quality and security in the banking sector to enhance digital financial inclusion. Future research opportunities include exploring diverse non-cash payment methods and extending studies to countries with significant global economic impacts. This research contributes valuable insights to policymakers aiming to enhance digital financial inclusion policies, ultimately fostering economic growth through the digital economy in the ASEAN-7 region.

This study investigated the influence of infrastructure spending, government debt, and inflation on GDP in South Africa from 1995 to 2023. Motivated by the need for sustainable growth amid fiscal and inflationary pressures, this research addresses gaps in understanding how these factors shape economic performance. The primary objective was to assess these variables’ individual and combined effects on GDP and offer policy recommendations. Using an ARDL model, the study explored long- and short-term relationships among the variables. Results indicate that infrastructure spending positively impacts GDP, promoting long-term growth, while government debt hinders GDP in both short and long runs. Moderate inflation supports growth, but excessive inflation poses risks. These findings imply the need for targeted infrastructure investments, strict debt management practices, and inflation control measures to sustain economic stability and growth. Policy recommendations include expanding public investment in productive infrastructure, implementing fiscal rules to prevent unsustainable debt levels, and maintaining inflation within a controlled range. Ultimately, these policies could help South Africa build a resilient, balanced economy that addresses both immediate growth needs and long-term stability.