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 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...

This paper investigates the relationships between real stock returns and a number of financial and economic variables for the UK economy for the period 1980 to 1994. We begin by discussing a theoretical model proposed by Balvers et al. and then re-estimate for the UK what may be regarded as an...