Money and inflation in Switzerland

This paper characterizes the relationship between monetary aggregates, inflation and economic activity in Switzerland since the mid-1970s. Traditional forms of money demand and quantity theory relationships have remained stable over the whole period. Broad money excesses over trend values, accounting for a secular decline in interest rates and thus in trend velocity, have been followed by persistently higher inflation and output with the usual monetary policy transmission lags. Money and exchange rate fluctuations can explain the major inflation developments in Switzerland over the past four decades.

Pengaruh Iklan Cash Card Terhadap Minat Mahasiswa Febi UIN Sumatera Utara

This research is motivated by increasingly rapid technologicaldevelopments, especially in the economic field, namely the paymentsystem. The card acts as a non-cash payment instrument and makesit easier for the public to make transactions or transfers betweenindividuals. This shows that people have switched from cashpayments to non-cash payments which will have an impact on thecurrent formula for money supply. Stability of money demand inpotential member states is imperative for the feasible commonmonetary policy. This study aims to determine the level of influenceof cash card advertising (atm card) on the interest of Islamiceconomics students at UIN North Sumatra and to determine whetheror not there is an effect of cash card advertising on the interests ofstudents of Febi UIN North Sumatra. The research method used is aquantitative method. Collecting data distributing respondentsIslamic economics S1 Stambuk 2019.. Research data collection usesthe questionnaire method with the Likert scale method and is givento 100 respondents. In this study, the data analysis techniques usedwere descriptive analysis and uji t using SPSS 15.0. The results ofthis study indicate that the effect of cash card advertising on theinterest of Islamic economics students at FEBI UIN North Sumatrais 15.49%. After passing several tests, it can be concluded that theeffect of cash card advertising is significant or there is a positiveinfluence on student interest

The Impacts of Government Spending and Monetary Policy Rate in Indonesia

This study reviews the impacts of government policies on the economy. The period of analysis starts from early banking sector reform until the current Covid-19 pandemic crisis. We apply Vector Error Correction Model based on the theory of money demand and inflation to analyze the relationships among income, inflation, money balance, government spending, and policy interest rate. The impacts of money balance and policy interest rate on income are as predicted by money demand. Financial sector growth and different expectation on inflation affect the efficacy of monetary policy. On the other hand, government spending might not be fully growth-enhancing. The need emerges to classify and distinguish the classes of government spending which increase growth.

LA (IN)ESTABILIDAD DE LA DEMANDA DE DINERO EN COLOMBIA, 2003-2020

<p>En este trabajo realizamos un análisis empírico de la evolución del agregado monetario M3 y de sus componentes en Colombia, con el propósito de evaluar las propiedades de estabilidad de cada uno de los activos que forman M3. El análisis se realiza con base en pruebas de raíces unitarias y cointegración. La estacionariedad de las series se estudia mediante las pruebas de ADF-GLS y M-type test, así como con pruebas que consideran la posibilidad de cambio estructural. El estudio prosigue empleando el modelo de vectores de corrección de errores (VECM) y mínimos cuadrados ordinarios totalmente modificados (FMOLS) para estimar la relación de largo plazo entre los componentes de M3 y las variables macroeconómicas determinantes. Los resultados obtenidos nos permiten afirmar que la estabilidad de la demanda de los diferentes componentes de M3 se mantiene, a pesar de distintos shocks que han afectado a la economía colombiana durante estos años.</p><p align="center"><strong> </strong></p><p align="center">THE (IN)STABILITY OF MONEY DEMAND IN COLOMBIA, 2003-2020</p><p align="center"><strong>ABSTRACT</strong></p><p>An empirical analysis is made of the evolution of M3 and its components in Colombia during the period 2003-2020. The purpose is to evaluate the stability of each of the assets that make up the aggregate M3. Unit-root and co-integration tests are used. The stationarity of the series is studied by ADF-GLS and M-type tests, as well as with tests that incorporate the possibility of structural change. In the following we implement two different methodologies to estimate the long-run relationship between M3 components and the macroeconomic determinant variables [Vector Error Correction Model (VECM) and Fully Modified Ordinary Least Squares (FMOLS)]. The results obtained allow us to affirm that the stability of the demand of the different components of M3 is maintained, in spite of different shocks that have affected the Colombian economy over these years.</p>

Impact of Budget Deficit Financing on Money Demand in Nigeria

The study empirically investigates the impact of budget deficit financing on money demand in Nigeria with an objective of finding the effect of budget deficit financing indicators such as external debt financing, domestic debt as well as debt servicing on money demand. The study is modeled using a framework of Keynesian theory of budget deficit financing and Richadian Equivalent hypothesis. The study adopted an auto redistributive lag model (ARDL) which shows the existence of long run relationship between money demand and indicators of financing budget deficit and ordinary Least Square. The general findings revealed that external source of financing budget deficit, internal source of financing budget deficit as well as debt servicing has a significant effect on money demand in the Nigerian context. Base on this findings, the study recommend that external and internal source of financing deficit should be encouraged for effective demand leading to economic stability reasons and not for political reasons and it should be properly channeled to productive sector of the economy that will enhance economic stability.

The impact of economic uncertainty, stock market uncertainty and monetary uncertainty on money demand in India

PurposeThe purpose of the paper is to address money demand instability and investigate the impact of economic uncertainty, stock market uncertainty and monetary uncertainty on money demand in India over the period 2003Q1–2019Q4.Design/methodology/approachThe study checks the stationarity of the variables through standard unit root tests. Based on the mixed order of variables' integration, the authors adopt the autoregressive distributed lag (ARDL) model to confirm the cointegration and check the stability of the money demand function (MDF).FindingsThe findings confirm the presence of cointegration and reveal a well-specified MDF, which exhibits stable parameters. Besides the conventional variables, all forms of uncertainties emerge as the essential long-term determinants of money demand. Long-run findings show that people demand more money to avoid the future financial crunch amid high economic, monetary and stock market uncertainties.Practical implicationsThe paper recommends, based on the findings, incorporating the monetary aggregates in the monetary policy framework as one of the essential information variables to control the fluctuation in the price level under the current flexible inflation targeting (FIT) regime.Social implicationsThe findings also add to the knowledge of economic agents in terms of the overall response of individuals to changes in different forms of uncertainties, thereby helping to formulate their portfolios more diligently.Originality/valueThe current work is the first of its kind in the Indian context. The incorporation of uncertainty measures in the MDF adds to the existing knowledge on money demand.

THE IMPACT OF ZAKAT ON MONEY DEMAND FUNCTION: EVIDENCE FROM MUZAKKI IN INDONESIA

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.

Money Demand and Inflation: The relationship between money demand, inflation, and the risk premium

In varied economics laws, inflation and interest rates are a standard reference of the economy. to place it merely, once interest rates fall, a lot of people and establishments will borrow extra money from banks and alternative lenders. Rising and rising interest rates push customers into saving mode as a result of the next come on savings. This leaves customers with less financial gain to pay that slows the economy and, as a result, lowers inflation. This relationship shapes up to date financial policies associated is that the most powerful consider the direction of an economy. this suggests that variable interest rates and inflation have a linear combination which will be shapely as economic potency.