Models of inflation usually have monetary policy impacting the economy through either an interest rate or a monetary/credit quantity channel but not through both. We argue that policy is transmitted via two distinct types of agents – those that are and that are not liquidity constrained. The...

The influence of commodity prices on consumer prices is usually seen as originating in commodity markets. We argue, however, that long run and short run relationships should exist between commodity prices, consumer prices and money and that the influence of commodity prices on consumer prices...

We argue that long run and dynamic relationships should exist between commodity prices, consumer prices and money. Using a cointegrating VAR framework and US data, our empirical analysis shows equilibrium relationships existing between money, commodity prices and consumer prices, with both...

The influence of commodity prices on consumer prices is usually seen as originating in commodity markets. We argue, however, that long run and short run relationships should exist between commodity prices, consumer prices and money and that the influence of commodity prices on consumer prices...

This article argues that long run monetary determination of both commodity and consumer prices may help explain US CPI and commodity price index data since the early 2000s.

This study develops a new financial market indicator, which may be a useful addition to analysing real activity in the US. By taking the ratio of the price return of equity industry groups of the S&P 500 over a benchmark industry group, in this case taken to be the Utilities industry group, an...

A presumption in much of the earlier literature on real exchange rates suggests their behaviour is decoupled from fundamentals. This paper develops a theoretical model which allows for increased globalisation and integration of international financial markets in a world where goods markets are...

The paper addresses the question of whether financial liberalisation and innovation have significantly altered consumption behaviour by reducing liquidity constraints as capital markets have become more flexible. A consumption model in which the permanent income hypothesis and extreme Keynesian...

This paper addresses the question of whether financial liberalization and innovation have significantly altered consumption behavior by reducing liquidity constraints as capital markets become more flexible. A consumption model, in which the permanent income hypothesis and extreme Keynesian...