This paper compares the behavior of long-term interest rates and prices in Italy, the United Kingdom and the United States, and seeks to shed light into what has become known as the 'Gibson paradox.' The authors compare the various theoretical explanations for the observed positive correlation...

This paper develops a continuous time model of "buffer stock money" and incorporates it within a small macromodel with policy rules. The author examines the dynamic behavior of the system when the authorities treat the money stock as an intermediate objective. The performance of monetary targets...

This paper provides a survey of some of the recent developments in the field of econometric modeling with cointegrated time series. In particular, they authors describe the testing and estimation procedures which have become increasingly popular in the recent applied literature. In addition to...

This paper considers the issue of whether a small developing economy such as Hong Kong faces a perfectly elastic demand for its exports of manufactured goods. We construct a simultaneous demand and supply system which is estimated using Full Information Maximum Likelihood methods, and which...

This paper considers the applicability of a « forward-looking intertemporal optimisation » model of the demand. for money to Italian data for M2 balances. The authors estimate the resulting model using both « errors-in-variables » and « two-stage » estimation methods, and assess the...

Problems encountered in the empirical modeling of the demand for money in Italy have usually been attributed to the presence of financial innovation in the last two decades. This paper constructs a model of the demand for M2 in Italy by explicitly incorporating variables that proxy the various...