The purpose of this paper is study the effect of monetary policy on asset prices. We study the properties of a monetary model in which a real asset is valued for its rate of return and for its liquidity. We show that money is essential if and only if real assets are scarce, in the precise sense that their supply is not sufficient to satisfy the demand for liquidity. Our model generates a clear ...

The fluctuating exchange rate and massive debt burden of Nigeria necessitates a thorough investigation trends in her foreign levels, its underlying causes, implications for economic growth. This study, therefore, investigated the impact rising external on with annual data from 1980 to 2021. motivation this study was premised inculcating government spending inflation into traditional analysis vo...

The conventional policy perspective is that lowering the interest rate increases output and inflation in the short run, while maintaining inflation at a higher level requires a higher interest rate in the long run. In contrast it has been argued that a Neo-Fisherian policy of setting an interest-rate peg at a fixed higher level will increase the inflation rate. We show that adaptive learning ar...

The gold standard was quite stable in the past: price level changes were relatively small, and trade cycles mild. However, its past stability does not guarantee nowadays. We show that of to shocks stemming from world market depends critically on size monetary stock relative extent these shocks. Every change decreasing lowers stability. discuss some consequences thesis too: first, any system eco...

This paper analyzes the Environmental Kuznets Curve (EKC) hypothesis to test the causality relationship between economic activity, trade openness and carbon dioxide emissions in Mexico (1971-2011). The results achieved in this research show that there are three long-run relationships between production, trade openness, energy consumption and carbon dioxide emissions. The EKC hypothesis was not ...

Abstract. Ensuring economic security is a guarantee of independence and autonomy the state, an integral condition for stability effective functioning society. Given development world economy, ensuring Ukraine, which basis national security, becoming increasingly urgent problem. The formation system Ukraine takes place in conditions globalization, can not but affect interests trends socio-econom...

The link between US labor cost and price inflation has weakened notably over the past three decades. In this paper we document decline analyse potential contributing factors. We consider four important trends that have shaped economy of late: (i) improved anchoring expectations; (ii) changing constellation shocks hitting economy; (iii) increased trade integration (iv) rising firm market power. ...

a r t i c l e i n f o Keywords: Asymmetry Inflation Relative price variability (RPV) U-shape JEL classification: E30 E31 E52 It is widely perceived that relative prices are more dispersed in periods of price decreases than in periods of price increases. We show that the asymmetry results from misspecifying the true, U-shaped, underlying model with a piecewise linear regression model. Ever since...

This paper studies non-cooperative monetary policy in a two country general equilibrium model where international economic integration is endogenised through firm-level heterogeneity and monopolistic competition. Economic integration between countries is a source of policy competition, generating higher long-run inflation, and increased gains from monetary cooperation. JEL codes: E31, E52, F41 ...