The relative impacts of the monetised and non‐monetised deficit on output and inflation in the United States are assessed using annual data for the 1923‐1982 period. With Federal Reserve purchases of government debt serving as a measure of monetisation, the results of Granger causality tests...

Summary Understanding the factors determining overnight rates is crucial both for central bankers and private market participants, since, assuming the validity of the expectation theory of the term structure of interest rates, expectations with regard to this “monadic” maturity should...

The idea behind the invisible hand is that when market participants pursue their own self‐interest constrained by sympathy for man and economic rivalry they satisfy the needs of others more effectually than if they intentionally tried to satisfy those needs. This pursuit of self‐interest...

Purpose – The purpose of this paper is to provide logical and empirical explanations as to why monetary policy is ineffective with respect to affecting mortgage rates, and thus investment and aggregate demand. Design/methodology/approach – Logical and empirical evidence is provided in...

Purpose – The purpose of this paper is to examine how firms respond to adverse supply shocks. Design/methodology/approach – This paper examines a supply shock within the framework of Mankiw's Menu Cost Model. Findings – The analysis in this paper illustrates that the type of adverse shock...

Summary The economic works of Johann Heinrich von Thuenen include 1,000 unpublished pages of drafts and notes on the basis of which he prepared the second volume of his famous “Isolated State in Relation to Agriculture and Political Economy”. It’s bulk was not made accessible until today....

Purpose – This paper aims to investigate the relationships between several macro‐economic indicators and real estate investment in China. Design/methodology/approach – This study proposes the “investment preference theory” to explain that bank deposits, stock investment and real estate...

Purpose The purpose of this paper is to examine the role of monetary liquidity in house price evolution through examining the Asset (housing) Inflation channel. It identifies the main channels of transmission affecting house prices from monetary supply channels to house price change, examining...

Purpose – The purpose of this paper is to empirically investigate the money demand function for five Southeast Asian countries, viz. Malaysia, Thailand, Singapore, the Philippines, and Indonesia. Design/methodology/approach – The ARDL modeling approach is employed because of its ability to...