how inflation taxation affects resource allocation and welfare has received a great deal of attention. so far, this debate has been controversial. in this paper we examine how nominal money growth as a means of public finance affects resource allocation and welfare in a neoclassical endogenous growth model with leisure and money in the utility function and production externality. the present st...

the purpose of this research is investigation of application of the arbitrage pricing theory and effect of unanticipated changes in a set of macroeconomic variables such as inflation rate, money supply, exchange rate, oil price, term structure and industrial production on expected security return in tehran stock exchange. in this research, data are analyzed quarterly for the period of 1997-2008...

The article "Money, Prices and Wages in the Confederacy, 1861-65" by Eugene Lerner (Lerner 1955) initiated a debate in which Lerner described the increasing inflation in the Confederacy over the course of the Civil War, and analyzed its reasons, attributing it to the increase in the stock of paper money over the duration of the war. This stock kept rising (Lerner 1955, p. 20, Table 1) because o...

Does the “smart money” effect documented by Gruber (1996) and Zheng (1999) reflect fund selection ability of mutual fund investors? We examine the finding that investors are able to predict mutual fund performance and invest accordingly. We show that the smart money effect is explained by the stock return momentum phenomenon documented by Jegadeesh and Titman (1993). Further evidence suggests t...

The paper examines the extent to which the conditional volatility of stock market returns in a small, internationally integrated stock market are related to the conditional volatility of financial and business cycle variables. It employs a low frequency monthly dataset for Australia including stock market returns, interest rates, inflation, the money supply, industrial production and the curren...

We consider a version of Kiyotaki and Wright's monetary search model in which agents can hold arbitrary amounts of divisible money. A continuum of stationary equilibriums, indexed by the aggregate real-money stock, exist with all trading occurring at a single price. There is always a maximum level of the real money stock consistent with existence of such an equilibrium. In the limit as trading ...

The use of a reserve aggregate as an operating target raises questions about the interest rate effects of policy actions on the ability of the Federal Reserve to achieve a desired growth in the money stock. Open market operations affect both reserve aggregates and interest rates. Changes in interest rates, in turn, influence the portfolio decisions of banks and the public, and are believed by s...

The study investigates the effect of macroeconomic determinants on the performance of the Indian Stock Market using monthly data over the period January 1991 to December 2011 for eight macroeconomic variables, namely, Interest Rate, Inflation, Exchange Rate, Index of Industrial Production, Money Supply, Gold Price, Silver Price & Oil Price, and two stock market indices namely Sensex and S&P CNX...

This paper examines the causal relationship between stock prices and macroeconomic aggregates in Iran, by applying the techniques of the long–run Granger non–causality test proposed by Toda and Yamamoto (1995). We test the causal relationships between the TEPIX Index and the three macroeconomic variables: money supply, value of trade balance, and industrial production using quarterly data for t...

Prior to 2005, accounting rules required corporations awarding employee stock options (ESOs) to expense their grant-date intrinsic value. Accordingly, only ESOs granted in the money would have a negative impact on accounting income. Backdating ESO grants in order to award in-the-money ESOs while reporting them as at-the-money would then eliminate an expense. However, whether an ESO has been gra...