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We analyse the effects of money growth within a standard New Keynesian framework and show that the interaction between staggered nominal contracts and money growth leads to a long-run trade-off between output and money growth. We explore the microeconomic mechanisms that lead to this trade-off,...
Persistent link: https://www.econbiz.de/10013319010
Cambridge Cash Balanced, the liquidity preference theory and the Monetarists as theoretical frameworks were explored to … their lagged values using the Vector Auto-regressive (VAR) analytical technique. The Classical quantity theory of money, the …
Persistent link: https://www.econbiz.de/10012062559
Empirical data is presented suggesting that high private and, to a lesser extent, public debt levels place a strong drag upon economic growth. A simple, demand-based, cash flow (DBCF) model of the economy is developed, separating out flows by marginal propensity to spend. This approach is both...
Persistent link: https://www.econbiz.de/10012980568
This paper discusses the link between financial development and macroeconomic volatility by exploring some of the ways through which financial development may affect business cycle fluctuations. To be specific, we examine whether stock market development exerts an unambiguous effect on...
Persistent link: https://www.econbiz.de/10011493759
This research paper intends to redefine and extend the concept of 'optimal liquidity' discussed in Han and Lee (2012 …). For this purpose, we have distinguished between liquidity held by households and liquidity held by firms following Levhari …) and derived the relationship between liquidity and consumption. In the present paper, we have extended Han and Lee (2012 …
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We study the liquidity exposures of value and growth stocks over business cycles. In worst times, value stocks have … higher liquidity betas than in best times, while the opposite holds for growth stocks. Small value stocks have higher … liquidity exposures than small growth stocks in worst times, while small growth stocks have higher liquidity exposures than …
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