What is measured by the amount of money? this question applicable to all kinds money at times. The answer can be key understanding money. article offers an question. paper considers phenomenon simple exchange and formulates general problem in form a system equations. Subjective equilibrium given Jevons equation. objective balance investigated. concept generalized power introduced, it shown that...

Abstract We study a real small open economy with two key ingredients (1) partial segmentation of home and foreign bond markets (2) pecuniary externality that makes the exchange rate excessively volatile in response to capital flows. Partial implies that, by intervening markets, central bank can affect spread between home- foreign-bond yields. Such interventions allow address externality, but th...