Economists have frequently argued that the money supply is endogenously determined. However, monetary regimes differ in important institutional respects and it may be that endogeneity may be true for some regimes and not for others. This paper tests for endogeneity of money supply in the G7...

In little more than twenty years, it has become widely accepted that the optimal design of monetary policy should include provision for a central bank that is independent of government influence. This is a remarkably short period of time for any idea in economics to become so widely-accepted....

This paper re-examines the relationship between stock market development and economic growth. It provides a theoretical basis for establishing the channel through which stock markets affect economic growth in the long run. It examines the hypothesis of endogenous growth models that financial...

Empirical work based on portfolio theories of the demand for money traditionally treat the quantity of money demanded as the outcome of a decision to allocate a fixed amount of wealth. By contrast, this paper argues that people commonly hold money at the same time that they borrow. Thus changes...

The causes of the "great inflation" of the sixteenth century have long been the subject of controversy. Since some major work in the 1930s, historians have argued over a "monetary" and a "real" interpretation. What we show in this paper is, first, that there was a dissenting opinion even then;...

In a world of endogenous money, the central bank's role in monetary policy is reduced to the setting of a very short-term official rate of interest, which indicates the price at which it will make liquidity available to the banking system. However, it is changes in market rates that affect...