onetary policy has traditionally been viewed as the process by which a central bank uses its influence over the supply of money to promote its economic objectives. For example, Milton Friedman (1959, p. 24) defined the tools of monetary policy to be those “powers that enable the [Federal Reserve] System to determine the total amount of money in existence or to alter that amount.” In fact, the v...

F or gauging inflationary pressures, many policymakers and financial market analysts pay close attention to the behavior of wages. It is widely believed that if wage costs rise faster than productivity, the price level may rise as firms pass forward increased wage costs in the form of higher product prices. Hence changes in productivity-adjusted wages1 are believed to be a leading indicator of ...

A segmented markets model is constructed with payments systems credit and a rich array of monetary policy instruments. Goods market segmentation plays an important role, in addition to the role played by conventional segmentation of asset markets. The diffusion of a money injection by the central bank depends on the interaction of agents in exchanging money for goods, and on the arrangements fo...

The importance of maintaining sufficient liquidity in financial markets is emphasised strongly in the academic literature. During the 1990s the United Kingdom monetary authorities introduced a number of structural reforms in the government bond market, aimed at improving secondary market liquidity. In this paper we examine the impact of the reforms by attempting to ascertain if liquidity levels...

This paper intends to discuss some problematic aspects that IS-LM have when dealing with fiscal deficits, especially when considering loanable funds model. Many others have focused on its assumptions for criticism of IS-LM, but I will mainly focus on its fundamental modelling nature. To say more specifically, I will argue that ordinary ISLM analysis is in contradictory nature to simultaneous eq...

The study investigates the effect of macroeconomic determinants on the performance of the Indian Stock Market using monthly data over the period January 1991 to December 2011 for eight macroeconomic variables, namely, Interest Rate, Inflation, Exchange Rate, Index of Industrial Production, Money Supply, Gold Price, Silver Price & Oil Price, and two stock market indices namely Sensex and S&P CNX...

This paper shows that a market price of nominal risk plays an important role in the determinacy of the price of money under a stochastic continuous−time monetary economy. It is presented that a sufficient condition for the determinacy of the price of money is either an exogenously given nominal short rate or an exogenously given market price of nominal risk, which implies that a different marke...

Financial statements of nineteen mature banks have been patronized to examine the impact of macroeconomic indicators and bank-specific determinants on the NPLs ratio through Quantile and Panel Data regression approaches. The impact of macroeconomic indicators on credit risk is statistically estimated for banking network via two directions. First, different quantiles are econometrically calculat...