Showing 1 - 10 of 10,364
macro and monetary economics, and providing a unified theory to analyze labor and goods markets. We calibrate the model, to …
Persistent link: https://www.econbiz.de/10012464723
The performance of empirical money demand equations over the past decade raises serious questions about money demand predictability. A variety of specifications were presented to explain past episodes of apparent money demand instability, but their success in predicting future money demand is...
Persistent link: https://www.econbiz.de/10012477504
model, banks endogenously perform the essential functions of real-world banks: they transform liquidity, transform maturity …
Persistent link: https://www.econbiz.de/10012480243
One of the current questions in the literature on the demand for money is whether the adjustment of actual to desired money holdings is in nominal or real terms. This paper describes a simple procedure than can be used to test the nominal against the real hypothesis. The test is carried out for...
Persistent link: https://www.econbiz.de/10012476963
The paper estimates a long-run demand function for M1, using U.S. data for 1959-1993. This paper interprets deviations from this long-run relation with Goldfeld's partial adjustment model. A key innovation is the choice of the interest rate in the money demand function. Most previous work uses a...
Persistent link: https://www.econbiz.de/10012469474
The main econometric issue in testing the Lucas hypothesis (1973) in a times series context is the estimation of the variance conditional on past information. The ARCH model, proposed by Engle (1982), is one way of specifying the conditional variance. But the assumption underlying the ARCH...
Persistent link: https://www.econbiz.de/10012476365
Previous models of the demand for money are either inconsistent with contemporaneous adjustment of the price level to expected changes in the nominal money supply or imply implausible fluctuations in interest rates in response to unexpected changes in the nominal money supply. This paper...
Persistent link: https://www.econbiz.de/10012478612
short rate. Evidence is especially strong for the United States and the United Kingdom over the entire period since World …
Persistent link: https://www.econbiz.de/10012456202
The influence of monetary policy over interest rates, and via interest rates over nonfinancial economic activity, stems from the central bank's role as a monopolist over the supply of bank reserves. Several trends already visible in the financial markets of many countries today threaten to...
Persistent link: https://www.econbiz.de/10012471361
We present a monetary model in the presence of segmented asset markets that implies a persistent fall in interest rates after a once and for all increase in liquidity. The gradual propagation mechanism produced by our model is novel in the literature. We provide an analytical characterization of...
Persistent link: https://www.econbiz.de/10012461092