Presence Of Money Research Articles

Currency and the Stability of People's Purchasing Power in Indonesia through Al-Maqrizi's Review

The presence of money has become an important part of people's daily lives, as well as the purchasing power of the people as an important element in the smooth economic cycle. The emergence of money came from the development of transactions that initially used barter which was later replaced by currency as a medium of exchange for international trade. Money management can be done by the government by controlling money in the form of monetary policy. This policy was a benchmark for a country's economy, when the state was able to control money well, the people's economy was also prosperous. The qualitative descriptive approach was used in this study. This article tried to provide views and discussion material to what extent the concept of monetary policy according to Al-Maqrizi and the implementation of his thinking was used in policymaking on people's purchasing power. The result of this research was that the concept offered by Al-Maqrizi was a concept of money that led to a moral, just, humane, and prosperous economy.The presence of money has become an important part of people's daily lives, as well as the purchasing power of the people as an important element in the smooth economic cycle. The emergence of money came from the development of transactions that initially used barter which was later replaced by currency as a medium of exchange for international trade. Money management can be done by the government by controlling money in the form of monetary policy. This policy was a benchmark for a country's economy, when the state was able to control money well, the people's economy was also prosperous. The qualitative descriptive approach was used in this study. This article tried to provide views and discussion material to what extent the concept of monetary policy according to Al-Maqrizi and the implementation of his thinking was used in policymaking on people's purchasing power. The result of this research was that the concept offered by Al-Maqrizi was a concept of money that led to a moral, just, humane, and prosperous economy.

What is Meant by 'Sharing' in the Sharing Economy?

This article looks closely at the notion of sharing as it is used in the context of the sharing economy. It is based on the qualitative analysis of semi-structured interviews conducted in four countries with thirty-four participants who see themselves as operating within the sharing economy. Interviewees' definitions and understandings of sharing are presented, with particular focus on the question of whether the presence of money is a counterindication for sharing. While some interviewees unequivocally reject as sharing any transaction that involves money, and while some view the use of 'sharing' to describe such interactions as manipulative and deceptive, others see the two as potentially co-existing. One mechanism that enables this is seeing paying and sharing as referring to different aspects of the same transaction. Interestingly, it is not only representatives of for-profit companies who argue that even where there is money, there can also be sharing, but also social justice activists lobbying for their vision of a sharing economy. Adopting a pragmatic approach to language, but not forgoing critique, the article argues for a close analysis of how people actually talk about sharing rather than dismissing certain practices as 'not really sharing'.

Debt constraints and monetary policy

In the present paper we show how simple monetary policies can mitigate real effects of credit frictions. We consider stationary overlapping generations economies in which consumers are not equally efficient in producing capital and cannot commit to repay loans. The presence of money in itself does not mitigate the real effects of credit frictions. Equilibrium allocations are generally not Pareto optimal unless the returns on money and capital production are identical for more productive consumers. However, printing money and distributing it to young consumers increase their incomes allowing young more productive consumers to produce more capital. Consequently money printing increases output.

Cash flows of enterprises: their assessment and analysis

The processes taking place in the economy in recent decades clearly demonstrate that the economic and social stability of society depends on the financial stability of enterprises. One of the most important signs of financial stability is the ability of an enterprise to generate cash flows. The presence of money from the enterprise determines the possibility of its survival and directions for further development. Any company in the course of its activities has a need for financial resources necessary for the implementation of relationships with other legal entities and individuals. The uninterrupted circulation of cash flows in the reproduction process means the fulfillment of obligations to the budget, partners, the absence of overdue debts to the enterprise and the enterprise itself, normal solvency, necessary financial stability, creditworthiness and profitability. The cash flow of an enterprise is a continuous process. For each direction of funds use there must be an appropriate source. In a broad sense, the assets of an enterprise represent the net use of cash, and liabilities and equity are net sources. A research aim was to conduct the all-round analysis of enterprise money forming streams, estimate the degree of sufficientness and efficiency for providing of their balanced and synchronization. For realization of the put aim tasks are pulled out: to find out the value of money streams in activity of menage subjects; to conduct the analysis of certain enterprise money forming streams; to carry out the estimation of composition, dynamics and efficiency of enterprise money streams management. Research methodology is folded by the scientific methods of cognition and special, in particular, economic and statistical methods (comparison, grouping, tabular, graphic, standardizations of investigated phenomena indexes), economic and logical methods (elimination, vertical, horizontal, coefficient analysis) which provided the solution of the tasks in the chosen research direction. The article discusses the nature and characteristics of cash flows. The above classification and sources of cash flow. On the example of agricultural enterprise "Sloboda " was estimated efficiency of cash flow. The main activities of the enterprise are: the cultivation of grain crops (except rice), legumes and oilseeds; breeding dairy cattle; breeding pigs; sugar production; breeding other animals; auxiliary activities in crop production. The input streams of this company are 100% solely cash from operating activities. Having considered the structure of the PSP “Sloboda” initial cash flows for 2015-2017, we can say that the main share of cash flows from operating activities (80-90%), from investment activities – 10-20%. Conclusions were made on improving the efficiency of cash flows. With the aim to increase cash flows of private agricultural enterprise "Sloboda" management efficiency it is necessary: to attract in practice the calculation of money streams indexes system as measuring devices of financial firmness and solvency; to study area conformities of money law streams and take them into account in practice and analysis of enterprise; to determine streams in registration, including operative, and information for timely forming of the extended dataware of enterprises cash flow analysis; to perfect money streams methodology of analysis; to take into account the factors of enterprise money motion in the conditions of vagueness and risk. Key words: cash, incoming cash flows, cash outflows, cash flow analysis, efficiency, profitability, liquidity, agricultural enterprise.

Wealth Preference and Rational Bubbles

We consider a neoclassical economy where households derive utility from holding wealth. We show that, under some conditions, there can be rational bubbles. Hence, we provide a microfoundation for bubbles that relies on a frictionless infinite-horizon economy without any heterogeneity across households. While our bubbly equilibria are very similar to those obtained by Tirole (1985) in an overlapping generation economy, the underlying economics is different. Turning to public debt, we show that Ponzi schemes can be sustainable. Hence, in general, the limit on the accumulation of public debt by the government is not given by its no-Ponzi condition but, instead, by the representative household’s transversality condition. The Ricardian equivalence must hold in any of our equilibria. Finally, in the presence of money, the real equilibrium structure of the economy remains unchanged. We carefully investigate the effects of helicopter drops of money on the possibility of Ponzi schemes and of speculative hyperinflation or deflation.

Wealth Preference and Rational Bubbles

We consider a neoclassical economy where households derive utility from holding wealth. We show that, under some conditions, there can be rational bubbles. Hence, we provide a microfoundation for bubbles that relies on a frictionless infinite-horizon economy without any heterogeneity across households. While our bubbly equilibria are very similar to those obtained by Tirole (1985) in an overlapping generation economy, the underlying economics is different. Turning to public debt, we show that Ponzi schemes can be sustainable. Hence, in general, the limit on the accumulation of public debt by the government is not given by its no-Ponzi condi-tion but, instead, by the representative household’s transversality condition. The Ricardian equivalence must hold in any of our equilibria. Finally, in the presence of money, the real equilibrium structure of the economy remains unchanged. We carefully investigate the effects of helicopter drops of money on the possibility of Ponzi schemes and of speculative hyperinflation or deflation.

Does Higher Transitory Income of Parents Permanently Increase the Income of Their Children?

Parent income can predict child income because both parent and child have high human capital, broadly defined, and because the presence of money makes it easier for the child to develop better job prospects. We use 45 years of Panel Study of Income Dynamics (PSID) data to investigate these two channels. We break parent income into a predictable human capital component and a transitory component whose variation is uncorrelated to a wide array of human capital measures. We find that intergenerational income transmission occurs through both channels, but that the coefficient tied to human capital income is approximately 0.7-0.8, whereas the coefficient on the residual or transitory income component, which is more closely tied to pure money transfer, is 0.2 and possibly substantially lower. Thus it appears that the intergenerational income elasticity is largely recovering human capital effects rather than the influence of money.

Money as Special Asset: Reanalyzing Behavioral Theories on Money with Implications for Islamic Finance

This paper addresses the concern that why is ‘money’ treated as a unique asset in the finance literature. The paper intends to do this by invoking contemporary and recent theories from the literature on behavioral and experimental economics and finance. The paper uses these theories to illustrate negative consequences if returns are generated purely on the possession of this financial asset itself. Survey research conducted on the basis of these theories demonstrates that the presence of money alters individual behaviors in a variety of ways and in a variety of contexts. Analyzing such theories on money can enrich our understanding of Islamic finance principles. Existing theory on Islamic finance mostly aims to provide an explanation of the prohibition of earning money over money, by exposing its effects in terms of an inequitable distribution of wealth in the economy. However, this paper addresses this question by analyzing money as a financial asset which investors hold by choice.

The effect of requesting money with a few coins in one hand: the foot-in-the-hand technique

Research has shown that individuals comply more readily to a monetary request made by a solicitor if the request disrupts the refusal script or if it is perceived as a legitimate request. We tested the effect of a new technique called the foot-in-the-hand technique (FITH), whereby solicitors requested money while holding a few coins in their hand. Findings show that the presence of money increased compliance with the request (Study 1), particularly when a reason for solicitation was added (Study 2). When the requesters stated that they were close to reaching the sum necessary to buy a particular product, more compliance was obtained (Study 3). A goal-oriented explanation was used to interpret the effect of the FITH technique.

Monetary Primes Increase Differences in Predicted Life-Satisfaction Between New and Old Indian Institutes of Technology (IITs)

Dynamics between money and happiness has attracted many scholars due to its importance in everyday lives but there is no study on the psychological consequences of priming money on life-satisfaction judgments. We examined whether students report life-satisfaction of themselves and that of others differently, after being reminded of money and whether such judgments differ for new versus old institutes of higher education. Students from a new Indian Institute of Technology (IIT) at Gandhinagar and from an old IIT at Bombay were asked to rate how satisfied currently they are with their lives in general and were also asked to predict how satisfied students are at other new and old IITs. Exposure to money did not affect self-reported satisfaction ratings and predictions of life-satisfaction for other students at old IITs. However, predicted life-satisfaction for students at new IITs reduced in presence of money. This made the difference in predicted student life satisfactions between old and new IITs more pronounced after priming money. Money selectively affects life-satisfaction predictions depending on the context and social value of an institution, probably because money makes the market-pricing mode of thought salient. These findings have important implication for education both in Asia and other countries.

What May Be Concluded from the Law of Comparative Advantage

I adopt the simple model of the law of comparative advantage which still holds up today but often is regarded as oversimplified or invalid in the modern world. The reason I use this version is the presence of money which serves only as a medium of exchange and an accounting unit i.e. countries are not interested in holding any balances of money so money in this example does not serve as a store of value and does not contribute to any advantage itself. On the base of this model I define the crucial condition for the beneficial international trade as it defines the set of exchange ratios between the traded commodities which may give a comparative advantage in trade for both countries. It shows also that when the exchange relation reaches the limiting values only one country benefits from trade i.e. receives a comparative advantage but the second country has the same conditions as without international trade so in this case a self-sufficiency is better and more secure than international trading. But when the exchange relation exceeds the limiting values of the above mentioned condition one country not only retains but also increases its comparative advantage while the second country even begins to incur loss from this trade what might be called comparative disadvantage or comparative loss. After introducing money the above mentioned conclusions concern the exchange rates of the countries trading internationally. This entitles to the other conclusion: that many depressive economic events could be explained even in considerable part by this theory and could indicate some preventing measures to avoid them or to diminish their influence. This might particularly concern the present situation of the euro area.

Money and the fear of death: The symbolic power of money as an existential anxiety buffer

According to terror management theory, people deal with the potential for anxiety that results from their knowledge of the inevitability of death by holding on to sources of value that exist within their cultural worldview. We propose that money is one such source capable of soothing existential anxiety. We hypothesize that death anxiety would amplify the value attributed to money, and that the presence of money would alleviate death anxiety. Study 1 indicated that individuals reminded of their mortality overestimated the size of coins and monetary notes. In Study 2, participants induced to think about their mortality used higher monetary standards to define a person or family as rich than those in the control condition. Study 3 revealed that people reminded of death desired higher compensation for waiving the immediate payment of money. Finally, Study 4 showed that priming participants with the concept of money reduced self-reported fear of death. We conclude that, beyond its pragmatic utility, money possesses a strong psychological meaning that helps to buffer existential anxiety.

The Orientational Transformations in Any Public Sphere: Deweyan Thoughts on Habermas, Habits, and Free Communication

Jurgen Habermas's conception of public sphere has been of doubtless importance for those interested in intersection between communication, argument, and ideal sort of community we ought to form. In The Structural Transformation of Public Sphere, Habermas (1962/1989) recounts devolution of public sphere from free-wheeling and politically important coffee houses, salons, and reading societies to highly mediated and money-saturated form evident in mid-twentieth century west. Habermas's theme seems to be one that many might agree with. The ideal public engages freely in rational-critical debate over vital political issues of day, and such an ideal can be thwarted by presence of money, staged politics, and manipulative endeavors such as political advertising and spin. Habermas's (1962/1989) story presents as main villains parties and special interest associations (p. 209), who tend to use mass media to one-sidedly present attractive slogans and arguments, but not to discuss them in maximally public sense of reasoned debate that Habermas (and many of his detractors, I might add) would find ideal. His account effectively ends with decline of public sphere, and with hope of its revival lying in actualization of two conditions: (a) the objectively possible minimizing of bureaucratic decisions and (b) relativizing of structural conflicts of interest according to standard of a universal interest everyone can acknowledge (Habermas, 1962/1989, p. 235). If we agree with Habermas's idealization of free communication, stage is set for us to do something about it by challenging, critiquing, and reconstructing form of public arena so as to reduce distorting forces (such as money and ideology) and structural conflicts of ends and goals. In other words, Habermas's payoff seems to be a focus on reforming material organization of society. As a pragmatist in Deweyan spirit, I do not wholly disagree with value of such a view. Yet I must demur as to one-sided reading of public sphere, its problems, and paths to its melioration that such a common reading of this work might encourage. Lenore Langsdorf (2002) has espoused a similar worry over lack of meliorative resources in Habermas's privileging of representative in his communicative theory. Pragmatists will demand that any reading of ideal of public sphere provide a workable and comprehensive account of how actual present situation can be meliorated. John Dewey, a figure Habermas did not read until later in his career, diagnoses a similar problem of eclipse or decline of public. The consonances here are so striking that Habermas (2002) later indicated that Dewey's The Public and its Problems (1927/1984) could have been a major source for my Structural Transformation of Public Sphere (p. 228). In this work Dewey highlights misuse of press and decline of public in our democratic system, but he continues his life-long fascination with another aspect to puzzle of public sphere: habits, attitudes, or orientations of those comprising actual communities. Part of recovery of public lies in how we reconstruct our habits of inquiry and interaction, a point I have drawn out of his enigmatic comments concerning Great Community (Stroud, 2008, 2011a). This emphasis on orientation of participants in public sphere is not absent from Habermas, but it is easily overlooked in favor of a clean, high-altitude reading of social transformation and change. In his magisterial two volume work, The Theory of Communicative Action (1984, 1987), he augments his account of public sphere with a reading of ever-present orientational choice in linguistic interaction--namely, between linguistic action oriented toward achieving certain goals or ends and action orientated toward reaching understanding with one's conversational other. …

Competitive equilibria in economies with multiple indivisible and multiple divisible commodities

In this paper we consider a general equilibrium model with a finite number of divisible and a finite number of indivisible commodities. In models with indivisibilities it is typically assumed that there is only one divisible good, which serves as money. The presence of money in the model is used to transfer the value of certain amounts of indivisible goods. For such economies with only one divisible commodity Danilov et al. showed the existence of a general equilibrium if the individual demands and supplies belong to a same class of discrete convexity. For economies with multiple divisible goods and money van der Laan et al. proved existence of a general equilibrium if the divisible goods are produced out of money using a linear production technology and no other producers are present in the model. In the model to be presented in this paper we consider an economy without production and with multiple divisible and multiple indivisible commodities. Convexity is replaced by pseudoconvexity, while the indivisible parts of individual demands should belong to some class of discrete convexity. One of the divisible commodities serves as money. Money is strictly desired by all consumers and there should be enough money present in the economy. To guarantee existence of a general equilibrium individual demands should be products of divisible and indivisible parts. In case there is no money, at least one linear production technology besides possibly other producers should be present in order to produce divisible goods.

La quantité optimale de monnaie dans un modèle avec appariements aléatoires

This article determines the optimum quantity of money for various extensions of the search-theoretic model of fiat money and examines the robustness of the KIYOTAKI and WRIGHT's results in the presence of money and inventory holdings. In the case of a bound on money holdings, the optimum quantity of money is reached when the distribution of money among agents is uniform. The choice of this upper bound by rational agents generates multiple equilibria.

Should smart operators mix business and surgery?

Should smart operators mix business and surgery?

Comment on Money in a Real Business Cycle Model

In the past few years, some economists have argued for a radical reinterpretation of the causes and understanding of macroeconomic fluctuations. They contend that nonfundamental, expectations-driven shocks, or animal spirits, may be either the central explanation or at least a very important part of the explanation of business cycles in industrial economies. It is the presence ofindeterminacy, meaning that allocations are not uniquely defined by preferences, technology, and equilibrium definitions, that allows for nonfundamental shocks to arise as equilibrium phenomena. Roger Farmer has been one of the main contributers to this new view. Along with Benhabib and Guo, he has developed a few generations of models that argue that indeterminacy is a common property of infinite horizon, representative-agent, general equilibrium frameworks, for empirically reasonable parameter values. The present paper represents the latest development. It builds on Farmer's previous work, but also departs from it in important ways aimed to counter criticisms of this work, and to persuade the profession of the reasonableness of the hypothesis. Furthermore, while in previous papers indeterminacy arose as a real phenomenon, independent of money, in this paper it is the presence of money that is ciucial to the explanation for indeterminacy. I will organize my comments under three headings. First, I discuss the central mechanism giving rise to indeterminacy in this model, and compare it with that in Farmer's previous papers. I then illustrate the response of this economy to a sunspot shock, and point out some of the strengths and weaknesses of the models ability to explain business cycles as expectation-driven phenomena. Finally, I discuss the reasonableness of the mechanism which gives rise to indeterminacy in this model.

The timing Of Exchange Regime Collapse Under Capital Controls

This paper investigation the Nature of balance-of payments crises in regimes with capital controls. It extends earlier works on Capital controls by assuming that households manage their consumption and asset portfolios to maximize intertemporal utility. Our main result is that capital controls are effectives in delaying, but not preventing, a breakdown of a fixed exchange rate regime in the presence of money- financed deficits. [F31]

The information content of the paper-bill spread

In a series of articles, Benjamin M. Friedman and Kenneth N. Kuttner maintain that the difference between the commercial paper rate and the Treasury bill rate has highly significant predictive value for real output even in the presence of money and regardless of sample. The results presented in this paper do not support Friedman and Kuttner's claims.

Adverse Selection in the Overlapping Generations Model: The Case of Pure Exchange

We examine the general equilibrium consequences of credit rationing that results from an adverse selection problem. Relative to a full information benchmark economy, static incentive problems result in reductions in the rate-of-return at inside money equilibria, and hence can cause dynamic inefficiency. These problems also create a role for outside money; and may convert otherwise "classical" into "Samuelsonian" economies. However, even the presence of money does not support steady state equilibria with constrained optimality properties. Policies that do support constrained optima are outlined, as are the consequences of credit rationing for the financing of government deficits. Journal of Economic Literature Classification Numbers: E13, E40, E44, E50, G14.