Historically, attempts to solve the liquidity puzzle have focused on narrowly defined monetary aggregates, such as non-borrowed reserves, the monetary base, or M1. Many of these efforts have failed to find a short-term negative correlation between interest rates and monetary policy innovations....

Measuring the economic stock of money, defined to be the present value of current and future monetary service flows, is a difficult asset pricing problem, because most monetary assets yield interest. Thus, an interest yielding monetary asset is a joint product: a durable good providing a...

Historically, attempts to solve the liquidity puzzle have focused on narrowly defined monetary aggregates, such as non-borrowed reserves, the monetary base, or M1. Many of these efforts have failed to find a short-term negative correlation between interest rates and monetary policy innovations....

Measuring the economic stock of money, defined to be the present value of current and future monetary service flows, is a difficult asset pricing problem, because most monetary assets yield interest. Thus, an interest yielding monetary asset is a joint product: a durable good providing a...

In this study, we first review the bifurcation phenomena in dynamic economic systems and point out the importance of bifurcations together with a summary of the common types of bifurcations which have been encountered in economic research. Although bifurcation analysis is a relatively new...

This research is intended to apply linear and non-linear techniques to estimate the money demand function of Saudi Arabia under two alternative approaches using two different measures of monetary aggregates (Divisia and Simple-Sum monetary aggregates). The first approach is the conventional way,...

Aggregation theoretic measures of the capital stock of money have in the past been criticized for their dependence on future expectations. I attempt to answer some of those objections by using several forecasting methods to generate expectations needed for calculating the economic stock of...

Aggregation theoretic measures of the economic stock of money (ESM) have been criticized for their dependence on future expectations. I answer some of those objections by using several forecasting methods to generate the expectations needed for calculating the ESM. I find that targeted factor...

If there is one thing economists agree on, probably it is that inflation is a monetary phenomenon. Money also is thought to be related to the output level of the economy. The consensus among economists, however, does not go any further, and views differ on the characteristics of the...

Significant prediction of asset prices is of a great importance in financial economics. When studying economic and financial phenomena, it is essential to correctly specify the model. If the true dynamics are nonlinear, using linear methods will probably be irrelevant in doing empirical...