The author presents a search-based model in which money coexists with equity shares on a risky aggregate endowment. Agents can use equity as a means of payment, so shocks to equity prices translate into aggregate liquidity shocks that disrupt the mechanism of exchange. The author characterizes a family of optimal monetary policies and finds that the resulting equity prices are independent of mo...

We estimate a model in which fiscal and monetary policy obey the targeting rules of distinct authorities, with potentially different objective functions. find: (1) Time‐consistent fits U.S. time series at least as well instrument‐rules‐based behavior; (2) American policies often do not conform to conventional mix conservative debt‐stabilizing policy, although economic agents expect stabilize de...

In light of the longstanding vision of economic and monetary integration in the ASEAN region and the importance of coordinating monetary policies to achieve it, the objective of this paper is to the assess the monetary policy synchronization among the founding members of the ASEAN, i.e., Indonesia, Malaysia, Philippines, Singapore and Thailand. Due to the importance of exchange rate movements t...

the present paper examines the mitigating effect of monetary and fiscal policies on the “growth laffer curve” (glc) using a panel data of 38 high income countries over the period 2003-2012. adopting generalised method of moments (gmm) estimators, the paper finds evidence substantiating the presence of an inverted-u glc. moreover, the evidence suggests that the glc shifts downward by employing e...

The Central Bank of Malaysia is facing unique challenges in transmitting its monetary policies due to Islamic banking, which strictly prohibits the interest payments. This article develops new methodology to calculate the demand for money function in the presence of Islamic banking. It indicates some weaknesses in the existing mechanism and raises thought that would be helpful in revising the m...