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developed economies. In this context, the main aim of this paper is to assess the relation between GDP and the most important …, there is a short-run causality from money supply (M3) to GDP and a long-run relationship between GDP, internal credit and M3 …-run causality from M3 to GDP and a long-run causality between GDP, internal credit and M3. Thus, the results contradict the money …
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We show analytically that in a rational expectations present value model, an asset price manifests near random walk behavior if fundamentals are I(1) and the factor for discounting future fundamentals is near one. We argue that this result helps explain the well known puzzle that fundamental...
Persistent link: https://www.econbiz.de/10012785468
We show analytically that in a rational expectations present value model, an asset price manifests near random walk behavior if fundamentals are I(1) and the factor for discounting future fundamentals is near one. We argue that this result helps explain the well known puzzle that fundamental...
Persistent link: https://www.econbiz.de/10012467971
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