This paper assesses different measures of Tobin's <italic>q</italic> on the US labor market over 1948--2002. We find a negative long-run relationship between the unemployment rate and Tobin's <italic>q</italic>, which is consistent with capital and labor being complements in production.

The paper tests the hypothesis that the presence of indexed money may rule out a process of currency substitution in contexts of persistent high inflation. Estimates for the case of Brazil using monthly data for the period 1985 to 1993 and cointegration techniques offer support for that.