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...

There has been a great deal of debate during the last few years over the ability of the Federal Reserve to control the stock of money. The participants in the debate are easy to identify. Economists of the monetarist persuasion assert that not only is the stock of money the proper instrument to use in influencing economic behavior, but they also argue that it is relatively easy to control, even...

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...

In a pure-currency economy, money is the only durable object and people have private histories so that they cannot be punished individually in the future for current actions. In many such economies, trade is enhanced through the use of money and taxation is not feasible. For economies of that kind in which the distribution of money is a state variable, the conjecture is that there are transfer ...

we have studied the relation between bank deposit rates and house prices in iran. for that, we have run some var models, using the following variables: real deposit rates (including 1 and 5 years deposit rates), money supply (including the high powered money and the liquidity), gdp, housing services index, and number of licenses for new houses. our results show that a reduction in the deposit r...

The purpose of this paper is to empirically examine whether movements in two important measurements of the aggregates money supply, M1 and M2, help in predicting future movements in the stock market. We use single-equation multivariate autoregressive models, with the optimal lag order selected using the Akaike Information Criterion, and run two types of Granger causality tests across sequences ...

‘Money’ has traditionally been considered by economists to be a ‘monetary aggregate’, constructed by simply summing all the component assets of the money stock with an equal weighting; this is known as the ‘simple sum’ measure of money. Although this approach is now recognised as being demonstrably wrong, it continues to be the official approach adopted by the Central Banks and hence is used to...