It is now widely known that most economic time series of nominal and real exchange rates, money supplies, nominal and real interest rates, price levels and annual rates of inflation possess the property of unit root non-stationarity (stochastic trends). The objective of this paper is to consider...

The purpose of this study is to establish the determinants of stock market returns for the UK market and to forecast the real capital gain for the Financial Times All-share index using monthly data for the period 1980-1994. Three models are used: (a) a model based on Fama's approach including...

The objective of this paper is to estimate both long-run reserves and long-run money demand equations using the multivariate cointegration approach. An economic model is constructed, based on the monetary approach to the balance of payments, in which the monetary authorities can control the...