2013 cambridge does monetary policy matter in development saad andary,second vice governor central bank of lebanon

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2013 cambridge does monetary policy matter in development saad andary,second vice governor central bank of lebanon

  1. 1. Does Monetary Policy Matter in Developing an Entrepreneurial Ecosystem?
  2. 2. Traditional Monetary Policy is Mandated to: 1. Issue Currency 2. Uphold Value of National Currency 3. Ensure stability of prices (currency; capital; goods & services) 4. Regulate the banking system (Bank of Banks) 5. Bank for the Government
  3. 3. If we mean by Development of an Entrepreneurial Ecosystem: “building capacity and empowering the have- nots”…IT DOES NOT PROPOSE TO DO THIS!
  4. 4. But we have done it in Lebanon: And how? We used “innovative” monetary policy to build: 1. Capital 2. Environment
  5. 5. 1. Capital - Social Capital (Green loans; housing for first-time buyers) - Cultural Capital (student loans; R&D) - Economic Capital (for SME’s in all sectors, recognizing country’s forte [innovation; knowledge; creative initiatives]; targeted Entrepreneurs)
  6. 6. 2. Environment Supported the Environment Needed for Building Capacity and Empowering the have-nots by making capital: a. Accessible to the people b. Affordable for the people
  7. 7. a. Accessible to the people: - Ensured no one is “left behind” by making capital “accessible” to everybody: Debt or Equity - Informed people (beneficiaries of bank loans almost doubled between 2008 [340,000] and 2012 [637,000]; GDP up 25%, same period; & created jobs); E-L; and networking events - Built institutional infrastructure both Financial and Academic
  8. 8. b. Affordable for the people - Limited the cost of capital to bear minimum: bank administrative costs (e.g. student loans) - Provided framework to ensure financial transparency and consumer protection
  9. 9. Our New Entrepreneurial Ecosystem is Proof that Monetary Policy, after all, Does Matter!

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