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WHAT DRIVES MOVEMENTS IN THE INCOME VELOCITY OF MONEY? A CASE STUDY OF THE U.S. 是什么推动了货币收入速度的变化？美国案例研究

American Finance & Banking Review Pub Date : 2023-12-17 DOI: 10.46281/amfbr.v8i1.2149

{"title":"WHAT DRIVES MOVEMENTS IN THE INCOME VELOCITY OF MONEY? A CASE STUDY OF THE U.S.","authors":"","doi":"10.46281/amfbr.v8i1.2149","DOIUrl":"https://doi.org/10.46281/amfbr.v8i1.2149","url":null,"abstract":"In their efforts to stabilize the price level, central banks often rely on the growth rate in the stock of money as an intermediate target variable. Usually, the premise underlying this approach is that the income velocity of money, defined as the ratio of nominal GDP to the stock of money, either randomly fluctuates around a constant mean or can, at least, be predicted with sufficient accuracy. The purpose of this paper is to put this assumption to the test. We do so by applying a first-order autoregressive model, supplemented by a set of lagged exogenous regressors, to the quarterly changes in velocity in the U.S. Our results confirm previous findings that dynamic dependencies exist between changes in the income velocity of money over successive periods of time. They also support the assertion that rising long-term interest rates lower the demand for money. Perhaps most importantly, however, we find that all else being equal, the degree of financialization in the economy, measured by the ratio of financial assets to GDP, has a positive and statistically significant effect on velocity. A possible explanation of this finding is the increasing availability of tradable, non-monetary financial instruments that are close substitutes for bank deposits.","PeriodicalId":371589,"journal":{"name":"American Finance & Banking Review","volume":"15 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138965918","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

SOLIDITY AND IMMUTABILITY OF BEHAVIOURAL FINANCE THEORY IN CAPITAL MARKET INVESTMENT: A GLOBAL PERSPECTIVE 行为金融理论在资本市场投资中的稳定性和不变性:一个全球视角

American Finance & Banking Review Pub Date : 2023-08-27 DOI: 10.46281/amfbr.v8i1.2071

Ejem Chukwu

{"title":"SOLIDITY AND IMMUTABILITY OF BEHAVIOURAL FINANCE THEORY IN CAPITAL MARKET INVESTMENT: A GLOBAL PERSPECTIVE","authors":"Ejem Chukwu","doi":"10.46281/amfbr.v8i1.2071","DOIUrl":"https://doi.org/10.46281/amfbr.v8i1.2071","url":null,"abstract":"This study evaluated the argument that the capital market is efficient such that all information from both the past, present, and unpublished have already been reflected in the market price of security as a guide for investors in the market and that the behavior of the same investors could affect the performance of the market. To address the above concern, the researcher employed various suitable final metric tools such as the Normality/Random Walk test, Variance ratio test, EGARCH models, etc., to analyze the daily historical data from prominent capital markets, each from all the continents around the world. From the results of these tools employed, none of the markets under study follow the random walk theory within the scope of the study. The results of EGARCH and volatility clustering tests also revealed that all the countries under study exhibited the property of stock returns distribution called volatility clustering or volatility pooling, a kind of heteroscedasticity, suggesting the nonconformity of the random walk theory. The failure of the various results to corroborate the random walk theory shows that investors are rational and unpredictable. These results have rightly positioned the behavioral finance theory as a veritable tool that can guide economic agents on capital market investment decisions. That means the behavior of investors makes share prices deviate from the economic fundamentals or assumptions. Considering the above findings, the researcher boldly advocates for a paradigm shift to behavioral finance theory, where emotions and psychology or mindsets of investors influence the investment decision-making process and financial markets, hence a veritable guide for decisions on stock market investments. Therefore, the researcher suggested that emotional and psychological checks be carried out on all stock market investors, mainly when an innovation or new policy is promulgated.","PeriodicalId":371589,"journal":{"name":"American Finance & Banking Review","volume":"29 4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131063134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

THE NEXUS OF TRADE LIBERALIZATION AND UNEMPLOYMENT IN THE CONTEXT OF AFGHANISTAN 阿富汗的贸易自由化与失业的关系

American Finance & Banking Review Pub Date : 2022-09-04 DOI: 10.46281/amfbr.v7i1.1793

{"title":"THE NEXUS OF TRADE LIBERALIZATION AND UNEMPLOYMENT IN THE CONTEXT OF AFGHANISTAN","authors":"","doi":"10.46281/amfbr.v7i1.1793","DOIUrl":"https://doi.org/10.46281/amfbr.v7i1.1793","url":null,"abstract":"Despite this, there have been conducted outnumber of studies on the relationship between trade and unemployment around the world. The purpose of this study is to investigate the nexus between trade and unemployment, and whether trade creates or destroys jobs in the context of Afghanistan. To answer this question, the data was gathered from various sources including the World Bank, and the National Statistics and Information Authority of Afghanistan, from 1990 to 2018. Using ADF (Augmented Dicky Fuller) stationarity test, ARDL Bound test, and causality test. The empirical evidence showed only short-run consequences in one variable which is Gross Domestic Products Per Capita. Further, the study employed diagnostic and stability tests to understand the fitness of the model. Hence, this study surely answers the questions and shows that there is no link between trade and unemployment. Finally, the study evinced only the influence of GDP Per Capita on unemployment. Besides, there is a unilateral causality running from GDP Per Capita toward Unemployment and also the study analyzed that GDP Per Capita has a negative and significant impact on Unemployment in the short run. Eventually, the study suggests that the government needs to reform policy in regard to tackling unemployment through domestic investment.","PeriodicalId":371589,"journal":{"name":"American Finance & Banking Review","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129987445","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

American Finance &amp; Banking Review最新文献

American Finance & Banking Review最新文献