While economies in transition are not devoid of their monetary policy models, the changes desired in the functioning of these economies may necessitate innovations to administer monetary policy models that are consistent with the newly established goals. Although some goals may essentially be...

The equilibrium real exchange rate is determined by a sustainable balancing of the current and capital accounts of the balance of payments, in an intertemporal optimizing model. A real wage target gives a real exchange rate target, which will be more appreciated than the real equilibrium...

Evaluating the costs and benefits of exchange rate stability, requires a different approach to Mercosur than to the European Union (EU). Trade integration within Mercosur is much more limited; currencies are driven by other factors such as confidence in the ability to serve external debt and the...

The effect of demand shocks is studied within an economy characterized by a temporally articulated production structure and bound by rational agents. Hicks' (1973) model is extended in order to include trade between two economies with demand links. This allows to tackle issues as the...

Among the important macroeconomic variables which explain inter-temporal behavior of real GNP production in an economy, money is undoubtedly one. According to monetarists, money is the fundamental motivating force to shape the time behavior of real GNP production and its related variables. But...

This paper empirically examines the short and long run response of economic activity (output-real and nominal, and price level) to monetary changes in the Indian context under open economy (i.e., post-economic reform period). The empirical results, applying Johansen-Juselius cointegration tests...

Developing countries are often associated with high and persistent inflation. A clear understanding of the behavior of inflation is crucial in formulating economic stabilization policies. To this end, the present study investigates the issue of long memory in inflation rates for 21 African...

In this paper, the authors reformulate the theoretical baseline DAS-AD model of Asada, Chen, Chiarella and Flaschel (2004) to allow-following Chen, Chiarella, Flaschel and Semmler (2005)-for its empirical estimation. The version of the model used here exhibits a Taylor interest rate rule in the...

This paper examines money demand function in India before and after liberalization. The stability of money demand function has been recognized for any meaningful conduct of monetary policy. Financial liberalization in India started in the 1990s. A decade of reforms has brought a major change in...

The main purpose of this study is to measure the level of the shadow economy in Norway following the demand for currency approach. The question analyzed is how well does this approach capture the level of shadow economy in the face of a decreasing level of currency in circulation and an...