In response to the COVID-19 pandemic, G7 central banks have launched asset purchase programs in anticipation of an increase in government bond offerings to finance ballooning fiscal deficits. As the volume of government bonds owned by private investors is not expected to rise during the current...

We derive fundamental new theory for measuring monetary service flows aggregated over countries within the European Monetary Union (EMU). We develop three increasingly restrictive approaches: (1) the heterogeneous agents approach, (2) the multilateral representative agent approach, and (3) the...

We investigate the feasibility of minting gold coins with a face value in excess of their bullion value, to circulate as currency alongside paper money. The problem is modelled in a partial equilibrium setting where individuals hold money because they face unpredictable liquidity shocks. Gold...

The consequences of electronic trading, payment and settlement have recently become one of the main topics in monetary economics. New innovations in payment and settlement technology are challenging the central bank's monopoly over the supply of base money, which is generally considered the...

This paper argues that the 'fiscal theory of the price level' (FTPL) is fallacious. The source of the fallacy is an elementary economic misspecification. The FTPL denies a fundamental property of any model of a market economy, that the budget constraint of any agent, private or public, must be...

The paper shows how increases in the inflation rate can cause the output growth rate to decrease by a lessor amount as the inflation rate rises. This is the so-called non-linearity in the inflation-growth effect. Our explanation helps show how model-based estimates of the inflation-growth effect...

It is given a deterministic dynamic equation of exchange taking into account existence of production-sale cycles with different periods. Obtained equation is strictly based on stock-flow consistent approach. The equation is a sort of law of money conservation. It is confirmed that Fisher's...