It is appropriate to conlude on a modest note. Economists really know little about the costs and benefits of monetary unification. We have trouble modelling the increase in economic efficiency associated with a single currency, and we disagree about value of an independent monetary policy.

Though it is generally accepted that the introduction of the euro is a business issue, its impact on information technology (IT) is tremendous. Since the mutual dependency of business and IT is crucial and undeniable, company management must consider both the business and IT aspects of euro...

The role of movements in real rates in explaining the relationship between long and short-term interest rates is explored using a model of optimal government debt management.

What kind of information do stock prices offer for predicting velocity? This paper develops previous work by Milton Friedman for the US economy and shows that a wealth effect derived from the stock market has negatively influenced the ratio of nominal income to a broad definition of money in a...

Adopting a system approach, the paper evaluates results of empirical research on money demand recently obtained at the Bank of Italy in a single equation context.

This paper explores the empirical relevance of arguments based on lack of credibility for explaining high ex post real interest rates afetr stabilization programs were implemented in Argentina, Israel, and Mexico in the mid-1980s.

This paper formulates equilibrium concepts in the large (non atomic) household model under the team interpretation, characterizes a class of equilibrium allocations, explores whether an equilibrium allocation in the large-household model has a foundation in the finite-household model, and...

This paper makes commodities divisible and incorporates bargaining into the search-theoretic model of money to determine the purchasing power of money (or price). It is shown that two monetary equilibria always coexist where flat money is universally accepted. The two equilibria differ in price,...

This Paper takes a new look at the long-run dynamics of inflation and unemployment in response to permanent changes in the growth rate of the money supply. We examine the Phillips curve from the perspective of what we call ‘frictional growth’, i.e. the interaction between money growth and...

Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables.