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...

helpful discussions and to three anonymous referees for helpful comments. Also, I am indebted to the assistance of Sonia Laszlo. RUNNING TITLE: Money with Idiosyncratic Returns. 2 ABSTRACT This paper extends the income fluctuations problem to an economy with endogenous growth. Individuals, instead of owning an stream of endowments, accumulate capital with an investment irreversibility constrain...

The Black–Scholes* option pricing model is commonly applied to value a wide range of option contracts. However, the model often inconsistently prices deep in-the-money and deep out-of-the-money options. Options professionals refer to this well-known phenomenon as a volatility ‘skew’ or ‘smile’. In this paper, we examine an extension of the Black–Scholes model developed by Corrado and Su‡ that s...

This study examines the company internal factors and macro-economic variables affecting stock prices in the Karachi Stock Exchange of Pakistan. Internal factors are earnings per share and dividend per share. The macro-economic variables are represented by the money supply, consumer price index, interest rates, and gross domestic product. A sample of 15 companies is selected from the financial s...

The million-dollar question for stock investors is if the price of a stock will rise or not. The fluctuation of stock market is violent and there are many complicated financial indicators. Only people with extensive experience and knowledge can understand the meaning of the indicators, use them to make good prediction to get fortune. Most of other people can only rely on lucky to earn money fro...