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      Monetary Growth Volatility and Asset Prices in a Two-Country Cash-in-Advance Model

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      https://www.riss.kr/link?id=A3136001

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      This paper contributes to the existing literature in the cash-in-advance asset-pricing general equilibrium model for open economies by showing that if one allows for a variable velocity of circulation in the domestic and/or foreign economy, the responses of assets, currencies, and relative prices to changes in the conditional variance of the domestic and/or foreign monetary growth process are critically different from the case where the velocities of circulation are constant.
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      This paper contributes to the existing literature in the cash-in-advance asset-pricing general equilibrium model for open economies by showing that if one allows for a variable velocity of circulation in the domestic and/or foreign economy, the respon...

      This paper contributes to the existing literature in the cash-in-advance asset-pricing general equilibrium model for open economies by showing that if one allows for a variable velocity of circulation in the domestic and/or foreign economy, the responses of assets, currencies, and relative prices to changes in the conditional variance of the domestic and/or foreign monetary growth process are critically different from the case where the velocities of circulation are constant.

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      목차 (Table of Contents)

      • Ⅰ.Introduction
      • Ⅱ.Two-Country Macroeconomic Structure
      • Ⅲ.Macroeconomic Equilibrium
      • Ⅳ.Stochastic Structure
      • Ⅴ.Domestic and Foreign Monetary Growth Volatility
      • Ⅰ.Introduction
      • Ⅱ.Two-Country Macroeconomic Structure
      • Ⅲ.Macroeconomic Equilibrium
      • Ⅳ.Stochastic Structure
      • Ⅴ.Domestic and Foreign Monetary Growth Volatility
      • A.Information Conditional upon Domestic Innovations or the Heat Wave Hypothesis
      • B.Information Conditional upon Domestic and Foreign Innovations or the Metheor shower Hypothesis
      • Ⅵ.Concluding Remarks
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