We determine the second best rule for the inflation tax in monetary general equilibrium models where money is dominated in rate of return. The results in the literature are ambiguous and inconsistent across different monetary environments. We derive and compare the optimal inflation tax solutions across the different environments and find that Friedman's policy recommendation of a zero nominal ...

In order to understand why there is a continuous increase in euro banknote circulation even though the use of cash for transactions decreasing area – phenomenon known as paradox banknotes members Overseas workstream Eurosystem Research Network on Cash (EURECA) have conducted study foreign demand banknotes. The results this are based desk research using data collected and from other organisation...

This paper examines the relation between money and housing variables in the euro area and in the US. Our empirical model is based on a standard money demand relation which is augmented by housing market variables. In doing so, co-integrated money demand relationships can be established for both the euro area and the US. Furthermore, we find evidence for asset inflation channels, that is, liquid...

This note explores the link between anticipated information and a preference for liquidity in investment choices. Given a subjective ordering of investment portfolios by their liquidity, we identify a sufficient condition under which the prospect of finer resolution of uncertainty creates a preference for more liquid positions. We then show how this condition might arise naturally in some stand...

In order to improve the robustness of industrial non-square systems with multiple time delays, contrary to omitting the time delays as a model perturbation, a reformative closed-loop gain shaping algorithm (CGSA) was presented using Padé stable approximation of time delays. The algorithm is more precise and concise to design the robust controller. The simulation results show that the robust con...

In patients with end-stage renal disease (ESRD), the intestinal tract may assume an accessory potassium (K) excretory role in the face of declining renal excretory function. Here, we report the case of a patient with ESRD who developed severe hyperkalemia following ileostomy not colostomy. A 6△-year-old woman undergoing hemodialysis began developing severe hyperkalemia after ileostomy. Previous...

This paper explores the determinants of alternative monetary aggregates in Euroland. A sample consisting of quarterly data covering the 1980:1–1998:4 period is considered. We are interested whether a conventionally defined money demand equation is stable in some aggregates as opposed to others. Both long-run and short-run relationships are considered in this paper. Overall, the results indicate...

This paper analyzes some new tests of the Cagan hyperinflation–money demand model which have several advantages relative to those in the literature. They do not confound specification error with rational bubbles, can be implemented with a linear procedure, and are frequently able to detect periodically collapsing bubbles which have challenged existing tests. After a Monte Carlo analysis, the te...