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Monetary Economics (monetary + economics)
Selected AbstractsGreek Monetary Economics in Retrospect: The Adventures of the DrachmaECONOMIC NOTES, Issue 3 2005Sophia Lazaretou This paper enumerates the adventures of the drachma step by step, dividing its story into seven parts. Specifically, its main purpose is to present some historical perspective on the behaviour of the monetary and fiscal policies pursued in Greece during the period from the early 1830s until the introduction of the euro. For Greece, the lessons of historical experience are very important. Since the formation of the modern Greek state, government officials have striven , sometimes making hard efforts , to keep abreast of international monetary developments. This was because they understood that the participation of a peripheral, poor and inflation-prone country with a weak currency and an underdeveloped money market, like Greece of the time, in a monetary club of powerful economies could improve her international credit standing and imply important benefits in terms of exchange rate and monetary stability, and long-term foreign borrowing. [source] Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth.ECONOMICA, Issue 300 2008By WYNNE GODLEY, MARC LAVOIE No abstract is available for this article. [source] MONEY AS A MECHANISM IN A BEWLEY ECONOMY*INTERNATIONAL ECONOMIC REVIEW, Issue 2 2005Edward J. Green We investigate the efficiency property of a monetary economy with spot trade. We prove a conjecture that is essentially due to Bewley (Models of Monetary Economics (1980); Econometrica 51 (1983), 1485,504). The gist is that monetary spot trading is nearly efficient ex ante in an environment where very patient agents can accumulate large enough money stocks to be completely self-insured. We also study examples where a nonmonetary mechanism is preferred ex ante to any monetary mechanism in a stationary environment, and where an inflationary monetary mechanism is preferred ex ante to a laissez-faire or deflationary monetary mechanism in an environment with impatient agents. [source] Business Cycles and the Role of Confidence: Evidence for Europe,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2 2007Karl Taylor Abstract This paper examines whether indicators of consumer and business confidence can predict movements in GDP over the business cycle for four European economies. The empirical methodology used to investigate the properties of the data comprises cross-correlation statistics, implementing an approach developed by den Haan [Journal of Monetary Economics (2000), Vol. 46, pp. 3,30]. The predictive power of confidence indicators is also examined, investigating whether they can predict discrete events, namely economic downturns, and whether they can quantitatively forecast point estimates of economic activity. The results indicate that both consumer and business confidence indicators are procyclical and generally play a significant role in predicting downturns. [source] Leaning into the Wind: A Structural VAR Investigation of UK Monetary Policy,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 5 2005Andrew Mountford Abstract This paper adapts Uhlig's [Journal of Monetary Economics (2005) forthcoming] sign restriction identification methodology to investigate the effects of UK monetary policy using a structural vector autoregression (VAR). It shows that shocks which can reasonably be described as monetary policy shocks have played only a small role in the total variation of UK monetary and macroeconomic variables. Most of the variation in UK monetary variables has been due to their systematic reaction to other macroeconomic shocks, namely non-monetary aggregate demand, aggregate supply, and oil price shocks. We also find, without imposing any long run identifying restrictions, that aggregate supply shocks have permanent effects on output. [source] Weak Identification of Forward-looking Models in Monetary Economics,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2004Sophocles Mavroeidis Abstract Recently, single-equation estimation by the generalized method of moments (GMM) has become popular in the monetary economics literature, for estimating forward-looking models with rational expectations. We discuss a method for analysing the empirical identification of such models that exploits their dynamic structure and the assumption of rational expectations. This allows us to judge the reliability of the resulting GMM estimation and inference and reveals the potential sources of weak identification. With reference to the New Keynesian Phillips curve of Galí and Gertler [Journal of Monetary Economics (1999) Vol. 44, 195] and the forward-looking Taylor rules of Clarida, Galí and Gertler [Quarterly Journal of Economics (2000) Vol. 115, 147], we demonstrate that the usual ,weak instruments' problem can arise naturally, when the predictable variation in inflation is small relative to unpredictable future shocks (news). Hence, we conclude that those models are less reliably estimated over periods when inflation has been under effective policy control. [source] Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and WealthTHE ECONOMIC RECORD, Issue 273 2010William Coleman No abstract is available for this article. [source] Output Taxation, Human Capital and GrowthTHE MANCHESTER SCHOOL, Issue 2 2000Rosa Capolupo In this paper we investigate the long-run effects of government spending and taxation in an endogenous growth setting. The model is a variant of Barro's model (,Government Expenditure in a Simple Model of Endogenous Growth', Journal of Political Economy, Vol. 98, 1990, pp. S103,S125) and Lucas's model (,On the Mechanics of Economic Development', Journal of Monetary Economics, Vol. 22, 1988, pp. 3,42) in which human capital accumulation is driven by government spending on public education. To balance the budget the government levies a tax on output in two alternative specifications of the human capital accumulation equation. The results consolidate some recent findings that taxation, when it is used for productive purposes, may lead to faster growth. Growth rates increase with taxes up to a level around 60,70 per cent. [source] The Continuing Muddles of Monetary Theory: A Steadfast Refusal to Face FactsECONOMICA, Issue 2009C. A. E. GOODHART Lionel Robbins was concerned about the methodology of economic science. When he discussed the relationship between theory and ,reality', two of the examples of inappropriate relationships were taken from monetary economics. Such shortcomings continue. Among the worst are: (1) IS/LM: whereby the monetary authorities set the monetary base, and the interest rate is market determined; (2) the monetary base multiplier of bank deposits, and the role of reserve ratios; (3) the current three-equation neoclassical consensus, assuming perfect creditworthiness, and hence no need for banks; (4) the analysis of the evolution of money. [source] Other financial corporations: Cinderella or ugly sister of empirical monetary economics?INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2005K. Alec Chrystal Abstract This paper reports estimates of an econometric model of the determinants of OFCs' broad money holding and M4 lending to OFCs. This is of interest both as providing information about a component of UK money and credit aggregates and because it provides some evidence of the link between financial activity and growth of the real economy. We model the long-run equilibria for money holding and lending to this sector as being driven by GDP, wealth, the return to financial services and various interest spreads. The dynamics of OFCs' money and lending are shown to be interdependent. We then consider the evidence for interactions between OFCs and other sectors. Our results indicate that M4 lending to OFCs is significantly related to aggregate investment in the long run, but is largely unrelated to the spending of households. Copyright © 2005 John Wiley & Sons, Ltd. [source] The Great Capitol Hill Baby Sitting Co-op: Anecdote or Evidence for the Optimum Quantity of Money?JOURNAL OF MONEY, CREDIT AND BANKING, Issue 6 2007THORSTEN HENS microeconomic foundation of money; optimum quantity of money; experimental monetary economics This paper studies a centralized market with idiosyncratic uncertainty and money as a medium of exchange from a theoretical as well as an experimental perspective. In our model, prices are fixed and markets are cleared by rationing. We prove the existence of stationary monetary equilibria and of an optimum quantity of money. The rational solution of our model, which is based on the assumption of individual rationality and rational expectations, is compared with actual behavior in a laboratory experiment. The theoretical results are strongly supported by this experiment. [source] MACRO-FINANCE MODELS OF INTEREST RATES AND THE ECONOMYTHE MANCHESTER SCHOOL, Issue 2010GLENN D. RUDEBUSCH During the past decade, much new research has combined elements of finance, monetary economics and macroeconomics in order to study the relationship between the term structure of interest rates and the economy. In this survey, I describe three different strands of such interdisciplinary macro-finance term structure research. The first adds macroeconomic variables and structure to a canonical arbitrage-free finance representation of the yield curve. The second examines bond pricing and bond risk premiums in a canonical macroeconomic dynamic stochastic general equilibrium model. The third develops a new class of arbitrage-free term structure models that are empirically tractable and well suited to macro-finance investigations. [source] | ||||||||||