This paper analyzes the effects of perfectly foreseen monetary policy within the framework of a standard cash-in-advance economy. Anticipated monetary policy is shown to have real effects by influencing inflationary expectations. In a cash-in-advance economy, an increase in the anticipated rate...

In this paper, the authors consider the restrictions imposed on excess returns denominated in different currencies by a dynamic optimization model. The restrictions are tested on stock market data from the New York Stock Exchange and the Toronto Stock Exchange. In the first part of the paper,...