A central feature of the monetarist approach to the problem of inflation is a preannounced gradual reduction in monetary growth. This reduction is to be sustained until a monetary growth consistent with a zero, or an acceptably low, target rate of inflation is reached. Thereafter, monetary growth is to be held constant at this new rate. The specifics of this prescription differ by the type of m...

This paper studies the relationship between inflation, output, money and interest rates in the euro area, using data spanning 1980–2000. The P model is shown to have considerable empirical support. Thus, the “price gap” or, equivalently, the “real money gap” (the gap between current real balances and long-run equilibrium real balances), has substantial predictive power for future inflation. The...

the most important objectives of monetary policy are to provide price stability, economic growth and favorable employment levels. since achieving these goals is not directly accessible for policy makers, so introducing and studying the appropriate tools and intermediate targets seem necessary. for this reason, this paper tries to answer this question: whether can we introduce an appropriate rul...

finding frequent patterns plays a key role in exploring association patterns, correlation, and many other interesting relationships that are applicable in tdb. several association rule mining algorithms such as apriori, fp-growth, and eclat have been proposed in the literature. fp-growth algorithm construct a tree structure from transaction database and recursively traverse this tree to extract...

The house price-to-income ratio (PIR) is widely used as an affordability indicator. This paper complements the cross-sectionally focused literature by proposing a tractable model for PIR dynamics. Our predicts that very persistent and correlated to lagged aggregate output. Cross-country analysis confirms this prediction provides evidence long-term, positive significant relationship between prod...

This paper examines the role of money in understanding the behavior of asset prices and whether and how monetary policy should react to asset prices such as stock prices and equity premiums. To do so, I introduce money via the form of transaction cost into a production economy with limited stock market participation where agents with lower inter-temporal elasticity of substitution (IES), called...

We discuss a method of ranking allocations in economic environments which applies when we do not know the names or preferences of individual agents. We require that two allocations can be ranked with the knowledge only of their aggregate bundles and community indifference sets–a condition we refer to as aggregate independence. We also postulate a basic Pareto and continuity property, and a prop...

We develop a statistical framework for the design of a strategy-proof assignment mechanism that closely approximates a target outcome rule. The framework can handle settings with and without money, and allows the designer to employ techniques from machine learning to control the space of strategy-proof mechanisms searched over, by providing a rule class with appropriate capacity. We solve a sam...

Empirical and experimental evidence documents that money illusion is persistent and widespread. This paper incorporates money illusion into two stochastic continuous-time monetary models of endogenous growth. Motivated by psychology, we model an agent’s money illusion behavior by assuming that he maximizes nonstandard utility derived from both nominal and real quantities. Money illusion affects...