What are the respective effects of a unit increase in money demand on the real exchange rate and on the current account, all else equal? The real exchange rate is known to appreciate, but the current account need not deteriorate, as the canonical Marshall Lerner condition instead seems to suggest. As this work presents, the current account deteriorates by virtue of a real exchange appreciation due to a fall in the real money supply, all else equal, and vice versa; it further specifies that the current account improves by virtue of a real exchange rate appreciation due to a rise in money demand, all else equal, and vice versa.
Gensys’non-minimality is shown analytically and necessary and sufficient conditions for vector autoregression representations of states in outputs are presented.
Abstract. The equation of exchange is derived from a standpoint encompassing the physics and economics thereof, whereby the maximisation of a money value function, increasing in real output and decreasing in the real money supply, while accounting for time and space, subjected to a money constraint, at the macroeconomic level, gives rise to an optimal level of real output thereby, expressing the liquidity demand coefficient as the inverse quotient of space over time. The fusion of such a liquidity demand coefficient expression with the money constraint, which is the equilibrium Cambridge equation, in turn gives rise to an equation for space, being the position of money, whose differentiation is precisely instantaneous money velocity and thence the exchange equation as presented by Fisher. The present analysis also derives money position on account of non-constant instantaneous money velocity as instantiated by Fisher, advancing a framework for the macroeconomy’s general money value function and money constraint in the process. It likewise advances simulations of non-constant average and instantaneous money velocity, with a particular application to a stylised closed macroeconomy. It finally proceeds to remodel instantaneous money velocity through the use of ordinary differential equations (ODEs) for the money equations of motion, both generally, by letting the sum of the three equal a corrected exponential random walk with drift, and through a money force model, of free accumulation with financial assets resistance. This work thus remarks in sum that money velocity as customarily calculated, taught and understood is not univocal.
Wherever dechristianisation could not have possibly materialised, in those polities which abandoned God to start with, since the Fall to the eschaton, slavery was never substantially execrated, having continued to this day, net of abolitionism, in globalisation. Thence the perduring Arab slave trade over one millennium and the improbability of an end to the Atlantic one absent abolitionism, which would have withal flowed indeed into globalisation. No sooner was Western Europe by contrast dechristianised at heart, in the tares of Protestantism, than the internal slave raids ended together with the tutelage of feudalism.
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