Monetary Experience Research Articles

Experience is all you need: a large language model application of fine-tuned GPT-3.5 and RoBERTa for aspect-based sentiment analysis of college football stadium reviews

ABSTRACT Despite extensive research in service industries, fine-grained explorations of customer experience within spectator sports remain limited. This study pioneers a transfer learning approach grounded in a post-positivism paradigm, underpinned by an integrative customer experience framework for aspect-based sentiment analysis of user-generated content, shedding light on the complexity of the college football game day experience. Three fine-tuned large language models were employed to qualitatively identify and quantitatively analyze customer experience from Tripadvisor reviews on college football stadiums. Our findings indicated that fans’ positive reactions to stimuli related to core (game dynamics), functional (facilities/services), emotional (intense feelings), and socialization (fan interactions/bonding) significantly increased the likelihood of them giving a five-star rating. Mitigating negative experiences across functional, emotional, socialization, safety, and monetary experience was crucial for achieving a top rating, with reducing negative functional issues and safety concerns having the greatest positive impact. Our study contributes to the sport management literature by establishing a unified view of customer experience, enabling a holistic conceptualization and operationalization of customer experience in spectator sports. Empirically, our research proposes targeted strategies to manage customer experience in college football and offers sport management professionals ready-to-use large language models along with detailed deployment guidelines tailored for distinct use cases.

THE ORIGINS OF YIELD CURVE THEORY: IRVING FISHER AND JOHN MAYNARD KEYNES

The purpose of the paper is to rescue Irving Fisher’s theorizing of the yield curve (1896, 1907, 1930) from relative obscurity and to contrast it with the better known and equally pioneering theory of John Maynard Keynes (1930, 1936). The paper also adduces evidence that Fed economists and the U.S. monetary experience in the 1920s greatly influenced these authors, both of whom were concerned with the management of the long-term interest rate.

Commodity Money and the Price Level

This article finds that in an open, free market economy, with a privately accessible state mint and an official currency based on a metallic standard, supply or demand shocks leave prices stable both in the short run and in the long run, with the exception of when the currency is debased. The stabilization property of this kind of currency derives from the mechanism by which changes in commodity prices motivate the holders of the stock of currency to shift their demand for it such that its acquisition cost equates to its purchasing power in terms of goods and services. When a country is large relative to the international market for specie, maintenance of price stability may require adjustments in the seigniorage charge, whereas in countries with closed economies such adjustments are in general imperative. In addition, through seigniorage adjustments, the price level may even be held fixed irrespective of the magnitude and origin of shocks, the relative size of the country, and the degree of its openness, whereas at the zero bound of the seigniorage charge, the same result may be achieved though lowering the specie content of the currency. These results are consistent with the monetary experiences of Athens in classical times, France during the period AD 1350–1436, Spain in the sixteenth century, the United States in AD 1870–1914, and China in AD 1910–35. Additionally, since electronic money such as bitcoin has properties similar to gold or silver, these results may extend to a cryptocurrency standard.

Frankel and Rose’s Introduction to the Endogeneity of Optimality: A Model Limited to the European Monetary Experience

This article discusses Frankel and Rose’s (1997, 1998) introduction to endogeneity, which was the result of scrutinizing the optimal currency area (OCA) theory through the evaluative lens of European monetary integration and unification in the 1990s. It cannot be generalized to another monetary union. The development of endogeneity interrelates five different criteria (common currency; transaction costs; commercial integration; economic convergence; and diversification of production) to argue that the introduction of a common currency leads to economic convergence among the participating countries. Frankel and Rose’s choice of analytic criteria arises from empirical studies on European monetary unification, following the OCA framework. The empirical studies found to have influenced the authors can be divided into three themes: the microeconomic benefits of a common currency; the optimality of European countries; and adjustment mechanisms. However, as shown by the selection of certain criteria, the influence of the Emerson report (1990), and the price-stability orientation of fiscal and monetary policies, their proposal only works within the monetary and economic conditions of the future eurozone area.

Trusting in Somalia’s stateless money: The persistence of the Somali shilling

Abstract In 2016, the Federal Government of Somalia (FGS) announced plans to re-launch the Somali shilling (SoSh), which had its last official printing before the state collapsed in 1991. The article takes this pivotal moment to address the following three questions: (i) Why has the stateless SoSh persisted? (ii) Why is Somalia considering re-introducing an official currency at this point? (iii) What do Somalia’s monetary experiences tell us about relationships among ordinary citizens, elites, and the state in Africa? The article offers an explanation based on a theory of social trust to account for the persistence of the SoSh. Unlike other studies that mainly emphasize a risk aversion attribute to explain the reliance on the trusted and familiar under conditions of precarity, this approach shows how trust can be scaled to explain important macro-level phenomena, such as export trade and nationalism. It proposes that the Somalia story is relevant to other African cases where public trust, state sovereignty, and monetary systems are weak and contested. Finally, the paper concludes that a lack of trust in the FGS and its ability to ensure the value of a new SoSh means that many Somalis are better off with their fragmented currency system rather than a monetary experiment likely to further destabilize an already volatile environment.

Keynes, inflation and the public debt: How to Pay for the War as a policy prescription for financial repression?

Recent contributions on ‘financial repression’ and ‘money illusion’ have referred to Maynard Keynes's How to Pay for the War as a supporting document. This article discusses whether Keynes prescribed policies of ‘financial repression’ that were implemented in the United Kingdom, and other countries, following World War II. It seems reasonable that Keynes's writings were instrumental in translating British monetary experiences of the 1920s and 1930s into expectations of policymakers during and after World War II, including a belief in ‘money illusion’ that suggested the use of inflation for driving down real interest rates of public bonds. If this was the case, How to Pay for the War could indeed provide an important explanation for the why and when of ‘financial repression’. This article argues that How to Pay for the War only partly provided support for a policy of ‘financial repression’, and none for using inflation as a ‘tax gatherer’ to the detriment of domestic savers in general. Crediting Keynes as a source for widespread ‘money illusion’ is also out of line with the historical record.

Forced savings and political malinvestment: an application of steve horwitz’s microfoundations and macroeconomics

Steven Horwitz’s book, Microfoundations and Macroeconomics has been at the center of the post-crisis revival of Austrian business cycle theory. Much of the work that has been done on this topic has either extended or refined Horwitz’s framework. This paper’s aim is more modest. In it, I apply Horwitz’s framework to the Confederate monetary experience during the U.S. Civil War. While there was an excess supply of money, I do not find any evidence that it generated a credit boom - quite the contrary. That said, there is evidence of forced savings, which the state and Confederate governments used to fund large-scale investment projects, among other things. While this is not malinvestment in the traditional sense, I argue that allocating credit in response to political incentives is unlikely to result in a sustainable capital structure. This finding points to the need to incorporate the notions of forced savings and malinvestment into a broader political-economy perspective.

Forced Savings and Political Malinvestment

Steven Horwitz's book, Micro-foundations and Macroeconomics has been at the center of the post-crisis revival of Austrian business cycle theory. Much of the work that has been done on this topic has either extended or refined Horwitz's framework. This paper's aim is more modest. In it, I apply Horwitz's framework to the Confederate monetary experience during the U.S. Civil War. While there was an excess supply of money, I do not find any evidence that it generated a credit boom - quite the contrary. That said, there is evidence of forced savings, which the state and Confederate governments used to fund large-scale investment projects, among other things. While this is not malinvestment in the traditional sense, I argue that allocating credit in response to political incentives is unlikely to result in a sustainable capital structure. This finding points to the need to incorporate the notions of forced savings and malinvestment into a broader political-economy perspective.

Cryptocurrencies: A Crash Course in Digital Monetary Economics

AbstractThis article reviews what cryptocurrencies are, and it frames them within the context of historical monetary experiences and contemporary monetary economics. The article argues that, as pure fiduciary private money, cryptocurrencies are a bubble without a fundamental value and they will not provide, in general, optimal amounts of money or deliver price stability. Nevertheless, cryptocurrencies can play a role in improving the current means of payments and in disciplining central banks into providing better government‐run fiduciary monies.

Cryptocurrencies: A Crash Course in Digital Monetary Economics

This article reviews what cryptocurrencies are, and it frames them within the context of historical monetary experiences and contemporary monetary economics. The article argues that, as pure fiduciary private money, cryptocurrencies are a bubble without a fundamental value and they will not provide, in general, optimal amounts of money or deliver price stability. Nevertheless, cryptocurrencies can play a role in improving the current means of payments and in disciplining central banks into providing better government‐run fiduciary monies.

Central bank credibility and the expectations channel: evidence based on a new credibility index

This article investigates the relationship between central bank credibility and the volatility of the key monetary policy instrument. First, we propose a time-varying measure of central bank credibility based on the gap between inflation expectations and the official inflation target. While this new index addresses the main limitations of the existing indicators, it also appears particularly suited to assess the monetary experiences of a large sample of inflation-targeting emerging countries. Second, by means of EGARCH estimations, we formally prove the existence of a negative effect of credibility on the volatility of the short-term interest rate. In line with the expectations channel of monetary policy, the higher the credibility of the central bank, the lower the need to move its instruments to effectively fulfill its objective.

The Rise and Fall of the Quantity Theory in Nineteenth Century Britain: Implications for Early Fed Thinking

British monetary experience in the nineteenth century was extremely rich both in terms of the development of the quantity theory and in terms of the evolution of views of the role of the Bank of England in the international gold standard. One can ask, should or could the early Federal Reserve have learned from this experience? Especially during the Depression, why didn't the Federal Reserve understand its responsibility for the monetary contraction, deflation, and economic collapse it produced? Why didn't knowledge of the quantity theory, which developed in early nineteenth century Britain, prevent such a catastrophic mistake? A short answer is that the quantity theory, which flourished in the first part of the nineteenth century, disappeared as the gold standard became orthodoxy and the counterfactual of a paper money standard became heresy. There was then very little to guide the early Fed when it created a monetary standard that in reality was a paper money standard.

Central Bank Credibility and the Expectations Channel: Evidence Based on a New Credibility Index

This article investigates the relationship between central bank credibility and the volatility of the key monetary policy instrument. Two main contributions are proposed. First, we propose a time-varying measure of central bank credibility based on the gap between inflation expectations and the official inflation target. While this new index addresses the main limitations of the existing indicators, it also appears particularly suited to assess the monetary experiences of a large sample of inflation-targeting emerging countries. Second, by means of EGARCH estimations, we formally prove the existence of a negative effect of credibility on the volatility of the short-term interest rate. Thus, in line with the expectations channel of monetary policy, the higher the credibility of the central bank, the lower the need to move its instruments to efficiently fulfill its objective.

Central Bank Credibility and the Expectations Channel: Evidence Based on a New Credibility Index

This article investigates the relationship between central bank credibility and the volatility of the key monetary policy instrument. Two main contributions are proposed. First, we propose a time-varying measure of central bank credibility based on the gap between inflation expectations and the official inflation target. While this new index addresses the main limitations of the existing indicators, it also appears particularly suited to assess the monetary experiences of a large sample of inflation-targeting emerging countries. Second, by means of EGARCH estimations, we formally prove the existence of a negative effect of credibility on the volatility of the short-term interest rate. Thus, in line with the expectations channel of monetary policy, the higher the credibility of the central bank, the lower the need to move its instruments to efficiently fulfill its objective.

A Simple Empirical Measure of Central Banks' Conservatism

In this article we suggest a simple empirical and model‐independent measure of Central Banks' Conservatism based on the Taylor curve. This new indicator can easily be extended in time and space, whatever the underlying monetary regime of the countries considered. We demonstrate that our measure evolves in accordance with the monetary experiences of 32 OECD member countries from 1980 and is largely equivalent to the model‐based measure provided by for the post‐1985 period. We finally present the relevance of such an indicator for further empirical analysis addressing the preferences of Central Banks.

A Simple Empirical Measure of Central Banks' Conservatism

In this paper we suggest a simple empirical and model-independent measure of Central Banks' Conservatism, based on the Taylor curve. This new indicator can easily be extended in time and space, whatever the underlying monetary regime of the considered countries. We demonstrate that it evolves in accordance with the monetary experiences of 32 OECD member countries from 1980, and is largely equivalent to the model-based measure provided by Krause & Mendez [Southern Economic Journal, 2005]. We finally bring forward the interest of such an indicator for further empirical analysis dealing with the preferences of Central Banks.

‘CANNOT BE FED ON WHEN STARVING’: AN ANALYSIS OF THE ECONOMIC THOUGHT SURROUNDING CHINA’S EARLIER USE OF PAPER MONEY

This article argues that Western impressions of the Chinese pre-modern monetary experience might have been excessively colored by Marco Polo’s favorable commentary on the stability of the Mongol polity and its dissemination of paper money. Experiments with unconvertible paper money had ultimately been no more successful in late-imperial China than they were in the early-modern West. By 1430, in fact, the Ming dynasty was forced to abandon the issuance of paper money altogether. The genesis of paper money both in China and it the West had originally emanated from private institutions. However, royally chartered banks of issue were conspicuously absent from the Chinese setting until the late nineteenth century.

Vom Gelde

Summary The paper looks back on the historical role of money. It starts by commenting on the different perceptions of money and a monetary economy by economists and noneconomists. Later on special emphasis is given to the most important functions and the different kinds of money in history. Furthermore there is a short review on the money creation process as well as on the effects of money on the real sector in the economy, sometimes stimulating production and employment and sometimes generating inflation. The paper finally links the historical monetary experiences to two recent disturbing monetary developments: the 2008 worldwide crisis of the banking and financial industries on the one hand and the actual and potential solvency crisis of Euro-area countries. It concludes with some remarks on the feasability of a monetary union between countries with different levels of and different attitudes to public debt.

The Challenges of Euro Adoption in Romania: Some Lessons from the Greek Experience

Romania belongs to the group of the new EU members that are committed by the Treaty to adopt the euro, which implies that they must strive to fulfill all the nominal convergence criteria. Analyzing the Greece’s monetary experience towards the EMU and its available policy instruments for this goal, this paper tries to derive some challenging lessons for Romania on its path to euro adoption. The present Greek debt crisis and the background of the global financial crisis are also taken into consideration. The Greek situation shows that an overly ambitious timetable and effort for adopting the single currency can be rather costly for the country concerned and the endeavor to improve the performance of the economy must be a permanent process and not be limited to satisfying the Maastricht convergence criteria.

Money in occupied New Orleans, 1862–1868: A test of Selgin’s “salvaging” of Gresham’s Law

We examine the monetary experience of New Orleans when it was occupied during and immediately following the Civil War, using newly assembled data regarding the quantity and market value of the city’s municipal notes and the city’s fiscal position. Municipal notes, acceptable for taxes, circulated at face value in retail transactions (and at only a small discount in broker transactions) as long as their supply was sufficiently limited, and they fell out of circulation and were priced at a discount relative to interest-bearing municipal bonds, when concern arose about their overissue. The spontaneous rejection of New Orleans municipal notes exemplifies how choice in currency works when insufficiently backed money is not supported by legal tender laws.