On the Instability of Long-Run Money Demand and the Welfare Cost of Inflation in the United States

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

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The world market for soybeans: price transmission into Brazil and effects from the timing of crop and trade

Nova Economia ◽

10.1590/s0103-63512007000200002 ◽

2007 ◽

Vol 17 (2) ◽

pp. 241-270 ◽

Cited By ~ 8

Author(s):

Mario A. Margarido ◽

Frederico A. Turolla ◽

Carlos R. F. Bueno

Keyword(s):

United States ◽

Forecast Error ◽

The United States ◽

World Market ◽

Price Transmission ◽

Long Run ◽

Cointegration Tests ◽

The World ◽

The Law ◽

The One

This paper investigates the price transmission in the world market for soybeans using time series econometrics models. The theoretical model developed by Mundlack and Larson (1992) is based on the Law of the One Price, which assumes price equalization across all local markets in the long run and allows for deviations in the short run. The international market was characterized by three relevant soybean prices: Rotterdam Port, Argentina and the United States. The paper estimates the elasticity of transmission of these prices into soybean prices in Brazil. There were carried causality and cointegration tests in order to identify whether there is significant long-term relationship among these variables. There was also calculated the impulse-response function and forecast error variance decomposition to analyze the transmission of variations in the international prices over Brazilian prices. An exogeneity test was also carried out so as to check whether the variables respond to short term deviations from equilibrium values. Results validated the Law of the One Price in the long run. In line with many studies, this paper showed that Brazil and Argentina can be seen as price takers as long as the speed of their adjustment to shocks is faster than in the United States, the latter being a price maker.

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United States Strategic Interests in Latin America: An Assessment

Journal of Interamerican Studies and World Affairs ◽

10.2307/166495 ◽

1997 ◽

Vol 39 (1) ◽

pp. 45-57 ◽

Cited By ~ 1

Author(s):

Albert R. Coll

Keyword(s):

United States ◽

Latin America ◽

The United States ◽

Second World War ◽

Economic Prosperity ◽

World War ◽

Long Run ◽

The Us ◽

Areas Of Concern ◽

Second World

As of 1997, the United States faces an unprecedented degree of security, stability, and economic prosperity in its relations with Latin America. Never before have US strategic interests in Latin America been as well-protected or have its prospects seemed, at least on the surface, so promising. Yet while the US strategic interests are in better shape — militarily, politically, and economically — this decade than at any time since the end of the Second World War, some problems remain. Over the long run, there is also the risk that old problems, which today seem to have ebbed away, will return. Thus, the positive tone of any contemporary assessment must be tempered with an awareness of remaining areas of concern as well as of possible future crises.

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INTERVENSI KEBIJAKAN MONETER TERHADAP INVESTASI PORTOFOLIO: KASUS INDONESIA DAN AMERIKA SERIKAT

Jurnal Kajian Ekonomi dan Pembangunan ◽

10.24036/jkep.v2i1.8793 ◽

2020 ◽

Vol 2 (1) ◽

pp. 1

Author(s):

Nanda Alfarina ◽

Hasdi Aimon

Keyword(s):

United States ◽

Interest Rate ◽

Secondary Data ◽

The United States ◽

Portfolio Investment ◽

Mechanism Analysis ◽

Long Run ◽

Negative Effect ◽

The Difference ◽

Effect Of Monetary Policy

This study aims to determine the effect of monetary policy measured by the central bank’s policy rate (X1) on portfolio investment (Y) in Indonesia and United States in the long run. The data used are secondary data seouced from SEKI BI, FRED The FEd, coinmarketcap.com, and investing.com, with the VECM (Vector Error Correction Mechanism) analysis methode. The study show The study shows the differences between the results that occur in Indonesia and the United States. The policy interest rate has a significant positive effect on portfolio investment in the long run in Indonesia, while in the United States the interest rate in the long run has a significant negative effect on portfolio investment. The difference in research results between the two countries shows the need for different treatment for monetary authorities in encouraging portfolio investment

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