"This paper investigates whether the quantity theory of money is still alive. We argue that it is, but that the slippage is not negligible. For countries with low inflation, the relationship between average inflation and the growth rate of money is tenuous at best. A correction for variation in...

We propose and apply a new approach for analyzing the effects of fiscal policy using vector autoregressions. Unlike most of the previous literature this approach does not require that the contemporaneous reaction of some variables to fiscal policy shocks be set to zero or need additional...

We present a dynamic general equilibrium model with agency costs, where heterogeneous firms choose among two alternative instruments of external finance - corporate bonds and bank loans. We characterize the financing choice of firrms and the endogenous financial structure of the economy. The...