In this paper, a partial adjustment model of money demand for Bangladesh is specified and is estimated with the annual data for the period 1973-2003. Then, the recursive and rolling regression techniques are applied and the possibility of changes in the income and interest elasticities of demand...

The main objective of this article is to evaluate the institutional quality of ten central banks. The countries included for this study are New Zealand, the United Kingdom, the United States of America, Germany, Chile, Indonesia, South Korea, Thailand, Hong Kong and India. The central banks of...

This paper presents a macroeconomic model designed for Lebanon to analyze the impact of monetary and fiscal policy on macroeconomic outcomes under alternative assumptions related to the funding of fiscal budgetary deficits. The model emphasizes on the importance of rational expectations and the...

The question of the main determinants of persistent responses due to nominal shocks captures, at least since Chari et al. (2000), a major part of the recent macroeconomic debate. However, the question whether sticky wages and/or sticky prices are sufficient for persistent reactions of key...

The paper examines the dynamic relationship between stock price and exchange rate expressed in terms of long run, short run and causal relationships in the context of India, using monthly data for the period 1990-2004 to 2004-08. The well-known cointegration tests, error correction mechanism and...

In this paper, the author employs models in level and first differences to gain some insights into the presence and significance of the degree of partial adjustment as opposed to a serially correlated policy shock in simple Taylor (1993) rules. In performing the exercise, the author considers...

Using a pure-exchange overlapping generations model, characterized with tax evasion and information asymmetry between the government (the social planner) and the financial intermediaries, the author discusses the optimal tax and seigniorage plans, derived from the welfare maximizing objective of...

This paper re-addresses the issue of international currency substitution, estimating a money demand equation for the euro-area. The testing procedure accounts for two alternative theories of money demand—the liquidity services model and the portfolio-balance model. The evidence found is...

In this article, the econometric model of the inflation processes in the Republic of Belarus is discussed, which makes it possible to explain the major factors determining the dynamics of the GDP deflator, consumer price index and producer price index during the period of 1994-2003. For...

Does price deflation cause recession? Though deflation has become a matter of concern for the Federal Reserve, recent studies suggest that the historical and causal record is mixed. In this article, the authors use historical data for the output and price level of the United States of America,...