We develop a general framework to examine how the presence of a monetary transmission mechanism shapes aggregate responses to shocks and the effects of monetary policy. Our framework nests two leading monetary models: a text-book New Keynesian setting and a setting where small transactions costs associated with adjustments in households’ money balances lead to an evolving distribution of money ...

policy-oriented research on the impact on poverty of macroeconomic policies (fiscal, monetary and exchange-rate policies) and adjustment policies (financial liberalization, trade liberalization, and privatisation/de-regulation). In evaluating this impact, the research also identifies complementary policies that can enhance the impact on poverty of macroeconomic and adjustment policies. This pap...

In this paper, I examine whether the current neglect of money growth in formulating monetary policy is consistent with the data. In particular, I examine whether money growth helps to predict inflation. The evidence indicates that money growth clearly helps to predict nominal income and is more informative than any other single variable about future inflation. Acknowledgement 1 I thank R. W. Ha...

We develop a general equilibrium framework to analyze the relationship between the operation of the financial system, inflation and economic growth. We first investigate the dynamic interactions between financial development and growth by analyzing how financial innovations affect real growth, and, in turn, growth affects the financial system. We then study how inflation affects financial deepe...

Warren Buffett famously stated two rules for investing: Rule #1. Never lose money, and Rule #2. Never forget Rule #1. Recent Peer Lending opportunities provide the individual investor to earn an interest rate significantly higher than that of a savings account. However, a default on the loan by the borrower means the investor will lose her entire principal. In this paper, we will use Machine Le...

The paper examines the causal nexus between financial development and economic growth in India in a multivariate VAR model. The empirical analysis is based on cointegration and causality test. The cointegration test finds the presence of long run equilibrium relationship between financial development and economic growth. The Granger causality test finds the existence of bidirectional causality ...

This consensus marks a considerable change from the views held by many economists at the time that Paul Volcker became Fed Chairman. In 1979, most economists would have agreed that, in principle, low inflation promotes economic growth and efficiency in the long run. However, many also believed that, in the range of inflation rates typically experienced by industrial countries, the benefits of l...

This study investigates how the rule of law (i.e. law) modulates demand- and supply-side drivers mobile money to influence innovations accounts, phone used send receive money) in developing countries. The following findings from Tobit regressions are established. First, demand-side linkages, modulates: (i) bank accounts automated teller machine (ATM) penetration for negative interactive relatio...

The Bush administration’s emerging market strategy is an interrelated part of our overall international economic agenda. The agenda focuses on two goals: increasing economic growth and increasing economic stability throughout the world, not only in emerging markets countries, but also in the developing countries and in the industrial countries, including the United States. President Bush’s idea...