The accuracy of prediction markets has been documented both for markets based on real money and those based on play money. To test how much extra accuracy can be obtained by using real money versus play money, we set up a real-world online experiment pitting the predictions of TradeSports.com (real money) against those of NewsFutures.com (play money) regarding American Football outcomes during ...

One of the fundamental questions concerning inside money is whether its issuers should be regulated and how. This paper evaluates the e¢ ciency of one prevalent regulatory recommendation –a requirement that private issuers redeem inside money on demand at par – in a random-matching model of money where the issuers of inside money are only imperfectly monitored. I …nd that for su¢ ciently imperf...

Recently the Bundesbank claimed that monetary targeting has become considerably more di cult by the increased volatility of short term money growth The present paper investigates the impact of German money growth volatility on income velocity and money demand in view of Friedman s money growth volatility hypothesis Granger causality tests provide some evidence for a velocity volatility linkage ...