demand for money
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2021 ◽  
Vol 8 (11) ◽  
pp. 490-506
Author(s):  
M. M. Fadakinte ◽  
Uche Nwali

This paper addresses grassroots indifference to party funding in Nigeria. It argues that all existing explanations on political apathy do not address the escalating tendency of the ordinary but educated and politically aware Nigerians to be averse to party funding. Drawing on political culture theory, the paper attributes the current trajectory of the phenomenon to a form of "inverse participant" culture by the grassroots, consequent upon their alienation that is driven by a convergence of three key variables: the cartel nature of party formation which is responsible for the disconnect in state-society relations, the appropriation and weaponisation of parties through funding, and decades of unfulfilled campaign promises. It further contends that grassroots indifference creates a funding vacuum which gives room for the monopoly of the party by the wealthy few and the moneybags.  The paper concludes that, to arrest grassroots disinterest in party funding, it will require a reform of the Nigerian state to wean it of predatory and exclusionary character and    arrest the prevailing cartelization of party formation and appropriation of political parties. It is also important to evolve a political culture that will create positive civic consciousness so as to shape voter-party-candidates relations in order to arrest the current negative voter attitudes that expect and demand for money from party candidates. This paper adopted the qualitative method of research , making use of extant literature on the subject matter and in addition used the interview method in seeking the opinions of a few individuals, some of them party card carrying members.  


Author(s):  
Atika Rukminastiti Masrifah ◽  
Fajrin Intan Safitri

Most research in the Islamic economy on the money demand have employed the Keynesian approach, while in this research money demand functions are derived from a microeconomic approach. Thus, the aim of this study is to test and analyze some of the key factors in Islamic money demand model with the microeconomics-based approach, and then, in accordance with Islamic principles, chooses muzakki as the best sample. The data source for this study is 200 muzakki in Java, with a period of 2020. Structural Equation Modelling (SEM) is adopted to examine the relationship between the seven constructs, i.e., zakat, PLS rate, state, regulation, goods and services, conspicuous consumption, and money demand. The systemic relationship between the structures indicates that the integrated model of demand for money has a strong zakat relationship, while reliability and validity have been established. Zakat plays a key role in applying the established paradigm of demand for money in relation to goods and services. Zakat significantly affects both goods and services as well as models of money demand. This proposed new model equation is intended to help each household economic actor increase the demand for philanthropic money. As many muzakki are spread throughout Indonesia, it is expected that the welfare of the poor and the low-income society will gradually improve and, finally, the distribution of income in Indonesia will be on an equal footing. 


Author(s):  
Carlos Newland

ABSTRACT Although paper note issuance increased dramatically in Argentina during the Triple Alliance War, inflation was not significant. This occurred because only a fraction of the increase in paper bills led to an expansion of the money supply, the rest being currency substitution. On the other hand, an increase in the demand for money for transactions was generated by rapid economic growth.


2021 ◽  
pp. 1-16
Author(s):  
MOHSEN BAHMANI-OSKOOEE ◽  
MUHAMMAD AFTAB ◽  
SAHAR BAHMANI

In search of a stable demand for money, almost all previous studies include two uncertainty measures captured by the volatility of the money supply and output. While in some countries, this yielded a stable demand for money, in some others, it did not. The latter was the case for Singapore. In this paper, we use a relatively more new and comprehensive measure of uncertainty known as policy uncertainty that is a news-based measure, and revisit the demand for money in Singapore. Our approach not only yields a stable demand for money in Singapore, but also reveals that the long-run effects of policy uncertainty on the demand for money are asymmetric. While increased uncertainty induces the public in Singapore to hold more money, decreased uncertainty does not affect.


2021 ◽  
pp. 1-34
Author(s):  
Jinan Liu ◽  
Apostolos Serletis

Abstract We use nonparametric and parametric demand analysis to empirically estimate a credit card-augmented monetary asset demand system, based on the Minflex Laurent flexible functional form, and a sample period that includes the 2007–2009 global financial crisis and the COVID-19 pandemic. We also use multivariate copulae in an attempt to capture various patterns of dependence structures. In doing so, we relax the joint normality assumption of the errors of the demand system and estimate the model without having to delete one equation as is usually the practice. We show that the Minflex Laurent copula-based demand system produces a higher income elasticity for credit card transaction services and higher Morishima elasticities between credit card transaction services and monetary assets compared to the traditional estimation of the Minflex Laurent demand system. We also show that credit cards are substitutes for monetary assets and that there is lower tail dependence between the demand for credit card transaction services and transaction balances.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anam Javaid ◽  
Noman Arshed

Purpose Money laundering is an activity where illegal proceeds are hidden. This often leads to a reduction in government revenue and loss of government control of public funds. This study aims to identify the important sources of growing demand for money laundering in developing countries. Further, it identifies the factors that reduce the impact of sources of demand for money laundering. Design/methodology/approach This study used the panel approach of feasible generalized least square to investigate the growing demand for money laundering in 62 developing countries and provides a moderation-based solution for managing the demand factors. Findings The empirical results of this study indicate that there are two sources that increase the demand for money laundering in developing countries. This includes a high tax rate on profit linked with private firms and businesses and diversion of public funds related to government officials and politicians. The results indicate that profit tax and diversion of funds increase the demand for money laundering. The profit tax-based money laundering can be moderated by the quality of the education system and the diversion of public funds and money laundering can be moderated using bureaucracy quality. Originality/value This is one of the first studies to empirically estimate the impact of two important sources (i.e. diversion of public funds by government officials and politicians and a high tax rate) that create demand for money laundering in developing countries. The findings help developing countries’ governments formulate policies and curb the growing demand for money laundering.


2021 ◽  
Vol 9 (8) ◽  
pp. 87-91
Author(s):  
Bruno Jossa

In Keynes’s approach, interest rates are driven up by rises in demand for money and scaled down by rises in money supply. On the contrary, this paper argues that neither of these propositions will stand the test of scrutiny. Keynes traced demand for money to three main factors, the transaction, precautionary and speculative motives, but rises in demand associated with the transaction motive do not necessarily drive up the rate of interest.  The paper shows also that the liquidity preference theory and the loanable funds theory are different theories and that the former is faulty, while the latter is correct.


2021 ◽  
pp. 299-317
Author(s):  
Pavel Potuzak

Friedrich August von Hayek (1935) developed a specific business cycle theory in which interactions between the real and monetary sectors play a central role. In the first version of the theory, shocks to the money supply deflect market interest rate from the natural level and thus give false signals to entrepreneurs about relative demand between present goods and future goods. This idea was represented in a simple graphical tool, which was later called the Hayekian triangle. The structure of capital and the production process are depicted in a diagram that maps flows of resources from early stages of production to late stages, and finally to the hands of the consumer. On the basis of this theory, the prelimi- nary recommendation for the monetary authority was to freeze the money supply in order to prevent fluctuations in the structure of production (Hayek 1928).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Udoma Johnson Afangideh ◽  
Tuwe Soro Garbobiya ◽  
Farida Bello Umar ◽  
Nuruddeen Usman ◽  
Victor Unekwu Ocheni ◽  
...  

PurposeThis paper is focused on determining the asymmetric effects of exchange rate on money demand function in Nigeria.Design/methodology/approachIt employs the empirical model of Baumol–Tobin. Baumol (1952), which was founded on the opportunity and transaction cost of holding money. Monetary aggregates, M1, M2 and M3, are used for the real money balances based on the nonlinear Autoregressive Distributed Lag bound testing procedure.FindingsThe results indicate that the positive and negative partial sum of exchange rate changes differ in magnitude and size, supporting the hypothesis of asymmetric effects of exchange rate changes on the demand for money in Nigeria.Originality/valueThis is the first paper to consider the new broad money aggregate (M3).


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