the present paper is an attempt to: 1- demonstrate how money is created (by the nature of the system), and to estimate the inflation resulting from monetary factors in both usurious and non-usurious systems. operational aspects of islamic and non-islamic banking systems are compared. 2- introduce a corrective term to be added to the multiplier of the supply of money, in order to prevent the und...

The net effects of switching from consumption taxation to inflation taxation on resource allocation and welfare crucially depend on production externalities. With elastic labor supply, raising inflation taxation decreases leisure, but increases the levels of real consumption, capital, and output. Moreover, this tax switch has two opposing effects on the level of real money balances: A positive ...

Any recession by definition is associated with an excessive liquidity preference. An ex ante excess supply of goods and services, i.e. the demand for goods and services falling short of the base output at the base prices corresponding to that output, which is what a recession is, must be associated with an ex ante excess demand for money at that output and prices. This is simply Walras’ Law. Th...

ship exists between the quantity of money and the general level of prices. Confidence This paper introduces a mechanism for in this relationship, expressed in terms of generating a series of rules that characterize long-run rates of money growth and inflation, the money-price relationship, defined as the along with an accumulation of evidence suprelationship between the rate of growth of portin...

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 ...