https://www.erfin.org/journal/index.php/erfin/issue/feed 2025-01-20T06:58:42+01:00 Dobromił Serwa editor@erfin.org Open Journal Systems <p>The journal publishes empirical studies in finance and economics. See our <a href="/journal/index.php/erfin/about/editorialPolicies#focusAndScope" target="_self">Focus and Scope</a>.</p> https://www.erfin.org/journal/index.php/erfin/article/view/200 2025-01-13T13:29:19+01:00 Innocent Chile Nzeh nzechile@yahoo.com Uche Collins Nwogwugwu uchenwogwugwu@gmail.com Maria Chinecherem Uzonwanne mc.uzonwanne@unizik.edu.ng Chika Priscilla Imoagwu cp.imoagwu@unizik.edu.ng Edwin Udochukwu Nwachukwu eu.nwachukwu@unizik.edu.ng

<p>The implementation of sterilization policy has been noted to raise domestic interest rates as it is designed to lower money supply. This occurs due to the inverse relationship between money supply and interest rates, with a rise in interest rates attracting additional inflows into the economy, putting pressure on monetary authorities. The verification of this hypothesis in the Nigerian context formed the motivation for this study. The main purpose of this study is to investigate whether sterilization policy actually raises domestic interest rates in Nigeria. Using a monthly dataset from 2010M1 to 2021M3 and the ARDL estimation technique, total sterilization serves as a proxy for sterilization policy, while the treasury bills rate proxies the domestic interest rate. Findings reveal that sterilization policy has a positive and significant impact on domestic interest rates in both the short-run and long-run. Additionally, money supply negatively affects domestic interest rates in the short-run, while world interest rates have a negative and significant impact on domestic rates in both the short and long runs.</p>

2024-12-31T00:00:00+01:00 ##submission.copyrightStatement## https://www.erfin.org/journal/index.php/erfin/article/view/206 2025-01-20T06:58:42+01:00 Michał Rubaszek mrubas@sgh.waw.pl

<p>Several recent studies pointed out to strong links among the most liquid core European natural gas markets. However, the evidence on the integration of less liquid, peripheral and core European markets is scarce. We address this topic by investigating the dynamics of daily natural gas prices quoted at six European hubs located in Germany, Poland, Czechia, Austria, Italy and Spain. We explore to what extend prices in these hubs are driven by price changes in the most liquid, benchmark European hub (TTF, Netherlands), other energy commodity prices (oil and coal) and local natural gas market fundamentals (whether conditions and gas inventories). We find that natural gas markets are driven by predominantly by changes in the benchmark hub as well as deviations from the law of one price. We also show that other energy commodity prices as well as idiosyncratic factors are important in the least squares regression, but not in a more elaborated GARCH model. These results adds to the discussion on the integration of European natural gas markets.</p>

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