What kind of information do stock prices offer for predicting velocity? This paper develops previous work by Milton Friedman for the US economy and shows that a wealth effect derived from the stock market has negatively influenced the ratio of nominal income to a broad definition of money in a...

This paper tests whether the reforms effected by the Italian Stock Exchange at the beginning of the nineties (creation of specialized intermediaries, obligation to trade on the official markets, screen-based trading and cash settlement) have increased market efficiency.

We develop a model which accounts for the observed equity premium and average risk free rate, without implying counterfactually high risk aversion. The model also does well in accounting for business cycle phenomena.