We construct an analytically tractable endogenous growth model of money and banking where money provides "liquidity services" to facilitate transactions and banks convert non-reserve deposits into productive capital. We examine both the long- and short-run effects of changes in the money growth...

This paper proposes a new route, namely efficient bargains between the union and the firm over wage and employment, to shed light on the contractionary effects of a currency devaluation. It is found that a currency devaluation will definitely depress the supply of domestic goods when the union...

This paper reexamines the dynamic features and the long-run effects of raising interest rates on union membership and employment in the Jones-McKenna (1994) model. Two major findings emerge from the analysis. First, the dynamic system of Jones and McKenna's model exhibits saddlepoint stability,...

This article applies the central feature of imperfect competition in the goods market to examine the validity of the Peacock and Shaw assertion that an increase in tax evasion will definitely lead to a higher domestic income and a lower level of total tax collections. The authors provide, for...