Money and Intertemporal Current Accounts among Industrialize Countries
| Autor: | Chung-Wen Chang, 張重文 |
|---|---|
| Rok vydání: | 2002 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 90 Title of Thesis：Money and Intertemporal Current Accounts among Industrialize Countries Total pages: 98 Name of Institute：Graduate Institute of Economics, National Chi-Nan University, Taiwan Graduate Date: June, 2002 Degree Conferred: Master Name of Student: Chung-Wen Chang Advisor: Dr. Ming-Jang Weng Abstract: “Save for a rainy day”, a well known theory proposed in Campbell (1987), indicates that the current consumption depends on the rational prospect of future economy. Nevertheless, within a highly developed economy, individual''s consumption is often affected by various factors, for instance, the rate of time preference, interest rates and inflation, …etc. Therefore, a rational representative consumer should take all possible information available to them into consideration in making decisions regarding optimal consumption; meanwhile, this will in turn affects current accounts and domestic credit as well. Based on the viewpoints of consumption-smoothing and permanent income hypothesis, we modify Ghosh (1995a)''s methodology to incorporate one of important macroeconomic variables, “money” into the intertemporal approach to the current account to explore its influence in explaining the difference between theoretical and actual current accounts. In this study, five major industrialized countries are investigated adding money as one of key elements: Japan, Canada, Germany, the US and UK. According to the empirical findings, not only the national cash flow (output minus investment and government expenditure) as stated in the literatures but money stock reflect their influence in determinating the dynamic behavior of current account aslo. Therefore, money does play a crucial role in our extensive method in explaining what traditional method can not explain. As a whole, the current accounts of these five major industrialized countries indeed acts as a buffer to smooth consumption in facing fluctuations of shocks to national cash flow and money stock. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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