The net effects of switching from consumption taxation to inflation taxation on resource allocation and welfare crucially depend on production externalities. With elastic labor supply, raising inflation taxation decreases leisure, but increases the levels of real consumption, capital, and output. Moreover, this tax switch has two opposing effects on the level of real money balances: A positive ...

In this study, we perform a quantitative assessment of the role of money as an indicator variable for monetary policy in the euro area. We document the magnitude of revisions to euro area-wide data on output, prices, and money, and find that monetary aggregates have a potentially significant role in providing information about current real output. We then proceed to analyze the information cont...

In this study, we perform a quantitative assessment of the role of money as an indicator variable for monetary policy in the euro area. We document the magnitude of revisions to euro area-wide data on output, prices, and money, and find that monetary aggregates have a potentially significant role in providing information about current real output. We then proceed to analyze the information cont...

At the center of monetary economics is a puzzling observation: innovations (unexpected surges) in the nation's total supply of money are historically correlated with innovations in real output Standard monetary economics can easily explain why an increase in the number of dollars will increase the prices of goods and thus nominal output, the dollar value of the economy's production. But why sho...

The problem of finding an econometric model expressing the mathematical relationship between empirically observed econometric variables can be viewed as a search of the space of possible computer programs for a program that produces the desired output for given inputs. This computer program can be found via the recently developed genetic programming paradigm which breeds populations of computer...

Recent empirical research found that the strong short-term relationship between monetary aggregates and US real output and inflation, as outlined in the classical study by M. Friedman and Schwartz, mostly disappeared since the early 1980s. In the light of the B. Friedman and Kuttner (1992) information value approach, we reevaluate the vanishing relationship between US monetary aggregates and th...

In two-sided markets an intermediary brings together two distinct customer populations, such as buyers and sellers on an e-commerce platform. In these markets the growth process of customer populations depends on network effects both within and between buyers and sellers. Thus, assigning IT investments to customer populations and quantifying the monetary value of these investments is complex. W...