This paper is an empirical investigation of money supply shock asymmetry using disaggregated output data covering the 1962:02-1999:11 sample period. A twostep estimation procedure is employed. The first step estimates the positive and negative shocks to M2 money growth. These shocks are then used as independent variables in the second-step estimation for 10 different disaggregated measures of i...

This analysis examines the effectiveness of monetary policy as a contra-cyclical instrument. The survey covers three basic fields of monetary policy. The first part investigates to what extent expansion of the money supply effectively results in the alleged growth effect. The second section studies the effect of monetary expansion on money velocity. The third part investigates the outcome of in...

where k = 1/V . This equation tells us that for any fixed money supply M, a negative relationship exists between the price level P and output Y , assuming that velocity V is fixed: the higher the price level, the lower the level of real balances and, therefore, the lower the quantity of goods and services demanded Y . In other words, the aggregate demand curve slopes downward. One way to unders...

The immeasurable potential productivity and high-growth characters contained in Internet Economy attract financial industry to develop internet financial service promptly, which will be mainstream tendency in this century. It has changed the function of traditional financial company and the structure of financial organization. Electronic money has also made the central bank loss the money suppl...

With recession lingering and interest rates remaining high, one hears increasingly that the Fed should abandon its money growth targets and move to a policy of lowering interest rates to full employment levels. All would be well, we are told, if only the Fed would set a fixed low interest rate target consistent with full employment and then let the money stock adjust to money demand to achieve ...

Any recession by definition is associated with an excessive liquidity preference. An ex ante excess supply of goods and services, i.e. the demand for goods and services falling short of the base output at the base prices corresponding to that output, which is what a recession is, must be associated with an ex ante excess demand for money at that output and prices. This is simply Walras’ Law. Th...

Distinguishing pure supply effects from other determinants of price and quantity in the market for loans is a notoriously difficult problem. Using German data, we employ Bayesian vector autoregressive models with sign restrictions on the impulse response functions in order to enquire the role of loan supply and monetary policy shocks for the dynamics of loans to non-financial corporations. For ...

The rule of ideologies which ban interest or usury which is earned through lending money has led to developing economic systems that differ from conventional economic systems in which ,interest has been entered. The presence of systems not relying on interest, in turn, has questioned the necessary motives in capital establishments through savings. In this paper, while defining the concepts of m...

abstract this study uses annual data over the period 2005-2014 and the panel vecm approach to examine financial inclusion and monetary policy effectiveness in africa. the study shows that financial inclusion and monetary policy effectiveness are linked by a set of long-run relationships. policy reaction to the positive financial inclusion shock is not significant. policy reaction to the positiv...