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This paper analyzes monetary policy in transition. It examines the dynamics of monetary policy in Mongolia using granger-causality tests for monetary variables and inflation. The paper also analyzes money demand using data from 22 Mongolian regions during 1993-1998. The analyses confirm the key role of monetary policy in stabilization and reveal that even in a transition economy as rudimentary as Mongolia, a stable money demand and a predictable relationship between inflation and monetary variables do exist. Hence market-based monetary policy is effective. In addition, the analysis points to a difference between transition and industrial economies in the elasticity of money demand with respect to activity, reflecting the larger role for transactions demand for money.

Foreign Exchange --- Inflation --- Macroeconomics --- Money and Monetary Policy --- Price Level --- Deflation --- Demand for Money --- Socialist Systems and Transitional Economies: National Income, Product, and Expenditure --- Money --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Personal Income, Wealth, and Their Distributions --- Monetary economics --- Currency --- Foreign exchange --- Demand for money --- Exchange rates --- Monetary base --- Personal income --- Prices --- National accounts --- Money supply --- Income --- Mongolia

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This paper investigates whether there is a different impact from changes in "new" and "old" economy stock valuations on private investment for seven OECD economies. A vector autoregressive model is estimated for each individual country, using quarterly data over the period 1990-2000. We find that the impact from changes in valuations of new economy stocks to investment is roughly the same in North America and United Kingdom as in continental Europe. By contrast, the impact from changes in old economy stock valuations on investment is, in general, larger in North America and United Kingdom than in continental Europe. Finally, the results suggest that in continental Europe the impact on investment from changes in the valuation of new economy stocks is bigger than for old economy stocks, whereas for North America and United Kingdom the impact is more similar.

Finance: General --- Investments: General --- Investments: Stocks --- Macroeconomics --- Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- General Financial Markets: General (includes Measurement and Data) --- Investment --- Capital --- Intangible Capital --- Capacity --- Price Level --- Inflation --- Deflation --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Finance --- Investment & securities --- Stock markets --- Market capitalization --- Private investment --- Asset prices --- Stocks --- Financial markets --- Prices --- National accounts --- Financial institutions --- Stock exchanges --- Financial services industry --- Saving and investment --- United States

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This paper quantifies the different impact of stock and house prices on consumption using data for 16 OECD countries. The analysis finds that the long-run impact of an increase in stock prices and house prices is in general higher in countries with a market-based financial system. The sensitivity of consumption to changes in stock wealth is about twice as large as the sensitivity to changes in housing wealth. Splitting the sample into the 1980s and 1990s shows that both countries with a market-based financial system and countries with a bank-based financial system moved toward a higher degree of responsiveness of consumption to changes in stock prices and house prices.

Finance: General --- Infrastructure --- Macroeconomics --- Real Estate --- Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- Macroeconomics: Consumption --- Saving --- Wealth --- General Financial Markets: General (includes Measurement and Data) --- Housing Supply and Markets --- Price Level --- Inflation --- Deflation --- Economic Development: Urban, Rural, Regional, and Transportation Analysis --- Housing --- Finance --- Property & real estate --- Consumption --- Stock markets --- Housing prices --- Asset prices --- National accounts --- Financial markets --- Prices --- Economics --- Stock exchanges --- Saving and investment --- United States

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This paper investigates if there is a different impact from changes in "new" and "old" economy stock valuations on private consumption. Estimating a reduced-form VAR for seven OECD countries for the 1990s, it is found that the impact from changes in old economy stock valuations on consumption is in general larger in the United States, Canada, and United Kingdom than in continental Europe. Furthermore, the impact from changes in new economy valuations to consumption is roughly the same in the United States, Canada, and United Kingdom and in continental Europe. Finally, the results suggest that in continental Europe the impact on consumption from changes in the valuation of new economy stocks is bigger than from the old economy stocks, whereas for the United States, Canada, and United Kingdom the impact is more or less the same between the two sectors.

Finance: General --- Investments: Stocks --- Macroeconomics --- Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- General Financial Markets: General (includes Measurement and Data) --- Macroeconomics: Consumption --- Saving --- Wealth --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Price Level --- Inflation --- Deflation --- Finance --- Investment & securities --- Stock markets --- Consumption --- Stocks --- Market capitalization --- Asset prices --- Financial markets --- National accounts --- Financial institutions --- Prices --- Stock exchanges --- Economics --- Financial services industry --- United States

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This paper uses new data and new econometric techniques to investigate the impact of international financial integration on economic growth and also to assess whether this relationship depends on the level of economic development, financial development, legal system development, government corruption, and macroeconomic policies. Using a wide array of measures of international financial integration on 57 countries and an assortment of statistical methodologies, we are unable to reject the hypothesis that international financial integration does not accelerate economic growth even when controlling for particular economic, financial, institutional, and policy characteristics.

Exports and Imports --- Finance: General --- Investments: Stocks --- Industries: Financial Services --- Economic Development: Financial Markets --- Saving and Capital Investment --- Corporate Finance and Governance --- International Investment --- Long-term Capital Movements --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- General Financial Markets: General (includes Measurement and Data) --- Current Account Adjustment --- Short-term Capital Movements --- Financial Institutions and Services: General --- International economics --- Investment & securities --- Finance --- Capital flows --- Capital inflows --- Stocks --- Financial integration --- Capital account --- Balance of payments --- Multilateral development institutions --- Financial institutions --- Financial markets --- Capital movements --- International finance --- Development banks --- Papua New Guinea