Seven years after the outset of Great recession, debate continues as to which economic policies are necessary return a state balanced and sustainable growth. In this context, many voices demand more active participation central banks, including forceful implementation monetary policy measures. The Austrian school thought maintains that financial systems play key role, but it does so from founda...

The purpose of this paper is to evaluate the recent developments in the theory and practice of monetary policy, drawing on the work of influential monetary economists of the past. JEL Classification: E5, E52

Credit has been found to be a catalyst for economic growth, as it spurs investment, enhances productivity, allows costs to be spread out over time, improves resource allocation, and enables investors to cope better with macroeconomic volatility. Most studies focus on the relationship between financial development and growth at the country level, while few analyze the relationship at the firm le...

Credit has been found to be a catalyst for economic growth, as it spurs investment, enhances productivity, allows costs to be spread out over time, improves resource allocation, and enables investors to cope better with macroeconomic volatility. Most studies focus on the relationship between financial development and growth at the country level, while few analyze the relationship at the firm le...

By introducing the concepts of implicit coalitions and con‡ict of interests in a multiple-player context, this paper generalizes some theorems on policy invariance and equilibrium existence and uniqueness for LQ policy games. JEL: C72, E52, E61

Article history: Received 23 February 2011 Received in revised form 25 April 2012 Accepted 3 May 2012 Available online 12 May 2012 A behavioral political economy framework is built on the basis of prospect theory to explain the induced and imposed institutional changes during China's market reform, giving special attention to the integrated effects of economic and political institutions. Accord...

This study focuses on estimating an economic discounting rate (EDR) to be used in project appraisals by the State Planning Organisation (SPO) of Turkey. The EDR is a policy tool used for selecting the best projects to meet the economic targets of development plans and to enable planners to choose the most profitable and feasible projects. Since the resources available to the economy are scarce,...

In this paper, we empirically investigate the relationship between oil price changes and output in a group of oil exporting countries. The dynamics of business cycles in Libya, Saudi Arabia, Nigeria, Kuwait, Venezuela and Qatar are modeled by alternative regime switching models. We show that the extension of uni-variate Markov Switching model in order to include oil revenue improves dating busi...

This paper empirically evaluates the operational performance of the McCallum rule, the Taylor rule and hybrid rules in India over the period 1996–2011 using quarterly data, with a view to analytically informing the conduct of monetary policy. The results show that forward-looking formulations of both rules and their hybrid version setting a nominal output growth objective for monetary policy wi...

We consider the stability under adaptive learning dynamics of steady state equilibria in Diamond’s (1965) overlapping generations growth model with capital and money. Interior steady state equilibria of this model can be either dynamically inefficient or dynamically efficient. We show that a necessary condition for an equilibrium of this model to be stable under adaptive learning is that the eq...