This study provides strong evidence for the stability of money demand of a semi-log form for the U.S., a log-log form for Japan and a semi-log form for Australia. This implies that there could be no finite satiation on the money demand curve as the nominal interest rate approaches zero and continue to stay near zero for a long period of time. The results support Friedman’s (1969) zero nominal i...

We develop the theory for Markov and semi-Markov control using dynamic programming and reinforcement learning in which a form of semi-variance which computes the variability of rewards below a pre-specified target is penalized. The objective is to optimize a function of the rewards and risk where risk is penalized. Penalizing variance, which is popular in the literature, has some drawbacks that...