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Yougui Wang - One of the best experts on this subject based on the ideXlab platform.

  • Keynesian Multiplier versus Velocity of Money
    Physics Procedia, 2010
    Co-Authors: Yougui Wang, Li Liu
    Abstract:

    In this paper we present the relation between Keynesian multiplier and the Velocity of Money circulation in a Money exchange model. For this purpose we modify the original exchange model by constructing the interrelation between income and expenditure. The random exchange yields an agent’s income, which along with the amount of Money he processed determines his expenditure. In this interactive process, both the circulation of Money and Keynesian multiplier effect can be formulated. The equilibrium values of Keynesian multiplier are demonstrated to be closely related to the Velocity of Money. Thus the impacts of macroeconomic policies on aggregate income can be understood by concentrating solely on the variations of Money circulation.

  • Dependence of Distribution and Velocity of Money on Required Reserve Ratio
    Practical Fruits of Econophysics, 2006
    Co-Authors: Ning Ding, Yougui Wang
    Abstract:

    The impacts of Money creation on the statistical mechanics of Money circulation were investigated by focusing on the dependence of monetary wealth distribution and the Velocity of Money on the required reserve ratio in this paper. In reality, Money creation is important to economic system. The process of Money creation can be represented by the multiplier model of Money in traditional economics. From this model, it can be known that the required reserve ratio set by the central bank is one of the main determinants of the monetary aggregate and under some assumptions the monetary aggregate can be expressed as the product of the monetary base and the required reserve ratio in steady state. Taking the role that the required reserve ratio plays in the monetary system into account, we developed a random transfer model by introducing a fractional reserve banking system and carried out some simulations to observe how the monetary aggregate evolves over time, how monetary wealth is distributed among agents, as well as how fast Money is transferred in the transferring process. Monetary wealth is found to follow asymmetric Laplace distribution, and the fact that latency time of Money follows exponential distribution indicates that the transferring process is Poisson type. The theoretical formulas of monetary wealth distribution and the Velocity of Money in terms of the required reserve ratio are given respectively which are in a good agreement with the simulation results.

  • how required reserve ratio affects distribution and Velocity of Money
    2005
    Co-Authors: Ning Ding, Yougui Wang
    Abstract:

    In this paper the dependence of wealth distribution and the Velocity of Money on the required reserve ratio is examined based on a random transfer model of Money and computer simulations. A fractional reserve banking system is introduced to the model where Money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. It is shown that monetary wealth follows asymmetric Laplace distribution and latency time of Money follows exponential distribution. The expression of monetary wealth distribution and that of the Velocity of Money in terms of the required reserve ratio are presented in a good agreement with simulation results.

  • The Velocity of Money in a life-cycle model
    Physica A: Statistical Mechanics and its Applications, 2005
    Co-Authors: Yougui Wang, Hanqing Qiu
    Abstract:

    Abstract The determinants of the Velocity of Money have been examined based on life-cycle hypothesis. The Velocity of Money can be expressed by reciprocal of the average value of holding time that is defined as interval between participating exchanges for one unit of Money. This expression indicates that the Velocity is governed by behavior patterns of economic agents and opens a way for constructing micro-foundation of it. It is found that time pattern of income and expense for a representative individual can be obtained from a simple version of life-cycle model, and average holding time of Money resulted from the individual's optimal choice depends on the expected length of relevant planning periods.

  • How required reserve ratio affects distribution and Velocity of Money
    Physica A: Statistical Mechanics and its Applications, 2005
    Co-Authors: Ning Ding, Yougui Wang
    Abstract:

    In this paper the dependence of wealth distribution and the Velocity of Money on the required reserve ratio is examined based on a random transfer model of Money and computer simulations. A fractional reserve banking system is introduced to the model where Money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. It is shown that monetary wealth follows asymmetric Laplace distribution and latency time of Money follows exponential distribution. The expression of monetary wealth distribution and that of the Velocity of Money in terms of the required reserve ratio are presented in a good agreement with simulation results.Comment: 21 pages, 8 figure

Ning Ding - One of the best experts on this subject based on the ideXlab platform.

  • Dependence of Distribution and Velocity of Money on Required Reserve Ratio
    Practical Fruits of Econophysics, 2006
    Co-Authors: Ning Ding, Yougui Wang
    Abstract:

    The impacts of Money creation on the statistical mechanics of Money circulation were investigated by focusing on the dependence of monetary wealth distribution and the Velocity of Money on the required reserve ratio in this paper. In reality, Money creation is important to economic system. The process of Money creation can be represented by the multiplier model of Money in traditional economics. From this model, it can be known that the required reserve ratio set by the central bank is one of the main determinants of the monetary aggregate and under some assumptions the monetary aggregate can be expressed as the product of the monetary base and the required reserve ratio in steady state. Taking the role that the required reserve ratio plays in the monetary system into account, we developed a random transfer model by introducing a fractional reserve banking system and carried out some simulations to observe how the monetary aggregate evolves over time, how monetary wealth is distributed among agents, as well as how fast Money is transferred in the transferring process. Monetary wealth is found to follow asymmetric Laplace distribution, and the fact that latency time of Money follows exponential distribution indicates that the transferring process is Poisson type. The theoretical formulas of monetary wealth distribution and the Velocity of Money in terms of the required reserve ratio are given respectively which are in a good agreement with the simulation results.

  • how required reserve ratio affects distribution and Velocity of Money
    2005
    Co-Authors: Ning Ding, Yougui Wang
    Abstract:

    In this paper the dependence of wealth distribution and the Velocity of Money on the required reserve ratio is examined based on a random transfer model of Money and computer simulations. A fractional reserve banking system is introduced to the model where Money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. It is shown that monetary wealth follows asymmetric Laplace distribution and latency time of Money follows exponential distribution. The expression of monetary wealth distribution and that of the Velocity of Money in terms of the required reserve ratio are presented in a good agreement with simulation results.

  • How required reserve ratio affects distribution and Velocity of Money
    Physica A: Statistical Mechanics and its Applications, 2005
    Co-Authors: Ning Ding, Yougui Wang
    Abstract:

    In this paper the dependence of wealth distribution and the Velocity of Money on the required reserve ratio is examined based on a random transfer model of Money and computer simulations. A fractional reserve banking system is introduced to the model where Money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. It is shown that monetary wealth follows asymmetric Laplace distribution and latency time of Money follows exponential distribution. The expression of monetary wealth distribution and that of the Velocity of Money in terms of the required reserve ratio are presented in a good agreement with simulation results.Comment: 21 pages, 8 figure

  • The Circulation of Money and Holding Time Distribution
    Physica A: Statistical Mechanics and its Applications, 2003
    Co-Authors: Yougui Wang, Ning Ding, Li Zhang
    Abstract:

    We have studied the statistical mechanics of Money circulation in a closed economic system. An explicit statistical formulation of the circulation Velocity of Money is presented for the first time by introducing the concept of holding time of Money. The result indicates that the Velocity is governed by behavior patterns of economic agents. Computer simulations have been carried out in order to demonstrate the shape of the holding time distribution. We find that, Money circulation is a Poisson process in which the holding time probability distribution follows a type of Gamma distribution, and the Velocity of Money depends on the share for exchange and the number of agents.

Teresa Sousa - One of the best experts on this subject based on the ideXlab platform.

  • International Transmission of Shocks, Money Illusion and the Velocity of Money
    2011
    Co-Authors: Teresa Sousa
    Abstract:

    Money illusion is "frequently invoked and frequently resisted" by economists. Resisted as it contradicts the maximizing paradigm of microeconomic theory and invoked since a tendency to think in nominal rather than real terms becomes evident in the behavior of agents. This paper rationalizes Money illusion in an stylized open economy model considering that private agents learn nominal aggregate demand at a level different from the one imposed by rationality. We find that the welfare effects of a productivity shock are increasing in the degree of Money illusion and decreasing in the degree of openness of the economy. Furthermore we introduce a Velocity of Money shock revisiting the Quantity Theory of Money within the open economy micro-founded framework. An incomplete information game between Home and Foreign policymakers with monetary policy rules is developed, where sudden unstable financial conditions arise in one country, to find that allowing for Velocity shocks reinforces the need for optimal monetary policy rules and to open the economies in order to avoid welfare costs.

  • international transmission of shocks Money illusion and the Velocity of Money
    EcoMod2011, 2011
    Co-Authors: Teresa Sousa
    Abstract:

    Money illusion is "frequently invoked and frequently resisted" by economists. Resisted as it contradicts the maximizing paradigm of microeconomic theory and invoked since a tendency to think in nominal rather than real terms becomes evident in the behavior of agents. This paper rationalizes Money illusion in an stylized open economy model considering that private agents learn nominal aggregate demand at a level different from the one imposed by rationality. We introduce a Velocity of Money shock revisiting the Quantity Theory of Money within the open economy micro-founded framework. An incomplete information game between Home and Foreign policymakers with monetary policy rules is developed, where sudden unstable financial conditions arise in one country, We find that the welfare effects of a productivity shock are increasing in the degree of Money illusion and decreasing in the degree of openness of the economy. We find that allowing for Velocity shocks reinforces the need for optimal monetary policy rules and to open the economies in order to avoid welfare costs.

Norlin Khalid - One of the best experts on this subject based on the ideXlab platform.

  • HALAJU WANG DI MALAYSIA: BUKTI EMPIRIK
    International Journal of Management Studies, 2010
    Co-Authors: Zulkefly Abdul Karim, Mansor Jusoh, Norlin Khalid
    Abstract:

    This paper aims to examine the volatility of Money Velocity and also to estimate the Velocity of Money function in Malaysia by using the quarterly time series data. This study employed the recent econometric techniques such as volatility model in ARCH and GARCH framework, Johansen co integration test and Vector Error Correction Model (VECM). The results show that the Velocity of Money for M1 (V1) and M2 (V2) are volatile and persistence rather than M3 (V3). The Johansen co integration test result indicates that the existence of long run relationship between Velocity of Money V1, V2 and V3 on the dependent variables, such as bond interest rate, deposit rate and income. Furthermore, the VECM result showed that the changes in dependent variables such as bond interest rate, deposit rate and income are significantly to influence the changes in Velocity of Money for V2 and V3 in the long run. Conversely, in the short run, a change in the national income has only significantly to cause the changes in the Velocity of Money V2 and V3, while the interest rate has significant effect to cause the Velocity of Money V3.

  • Halaju wang di Malaysia : bukti empirik [The Velocity of Money in Malaysia : empirical evidence]
    2008
    Co-Authors: Zulkefly Abdul Karim, Mansor Jusoh, Norlin Khalid
    Abstract:

    This paper aims to examine the volatility of Money Velocity and also to estimate the Velocity of Money function in Malaysia by using the quarterly time series data. This study employed the recent econometric techniques such as volatility model in ARCH and GARCH framework, Johansen co integration test and Vector Error Correction Model (VECM). The results show that the Velocity of Money for M1 (V1) and M2 (V2) are volatile and persistence rather than M3 (V3). The Johansen co integration test result indicates that the existence of long run relationship between Velocity of Money V1, V2 and V3 on the dependent variables, such as bond interest rate, deposit rate and income. Furthermore, the VECM result showed that the changes in dependent variables such as bond interest rate, deposit rate and income are significantly to influence the changes in Velocity of Money for V2 and V3 in the long run. Conversely, in the short run, a change in the national income has only significantly to cause the changes in the Velocity of Money V2 and V3, while the interest rate has significant effect to cause the Velocity of Money V3.

Mukhlis Mukhlis - One of the best experts on this subject based on the ideXlab platform.

  • Dampak transaksi non tunai terhadap perputaran uang di Indonesia
    'Faculty of Economics Universitas Sriwijaya', 2019
    Co-Authors: Gintting Zakhariantara, Djambak Syaipan, Mukhlis Mukhlis
    Abstract:

    The objective of this study was to analyze the impact of the use of electronic Money (e-Money) to the Velocity of Money in Indonesia. The use of this payment instrument makes consumers easy to pay, thereby increasing the level of consumption. Data used is the nominal of transaction in 2013 to 2017 from Bank Indonesia database. The method in this study used regression model with OLS (Ordinary Least Square) estimate. The finding in this study showed e-Money transactions consisting of the nominal e-Money transactions, nominal ATM-Debit card transactions and nominal credit card transactions partially no significant effect on the Velocity of Money in Indonesi