money deficit and public debt in the united states this study estimates the underlying parameters in a dynamic game between the fiscal and monetary authorities over the determination of public debt these estimates reveal the policymakers attitude towards the goal of stabilizing the time path of public debt the central finding is that in the united states during the 1955 85 period this goal has been pursued by the fiscal authority but not by the central bank monetary policy has not monetized the stock of public debt outstanding whereas cyclically adjusted net of interest fiscal deficits have been reduced to offset increases in the stock of debt in circulation copyright 1989 by mit press

fiscal deepening versus financial underdevelopment which accounts for the payments problems this paper records an attempt to establish a reasonably stable relationship between the domestic government budget deficit and the balance of payments using both monetarist and keynesian formulations a large sample of countries is classified in three groups on the basis of an index measuring the level of indebtedness and pooled time series regression analysis is carried out to substantiate the fiscal deepening hypothesis according to this hypothesis the largest impact of the deficit on external balance occurs in debt ridden countries regardless of the state of financial development because the deficit can better substitute for the domestic credit component of the monetary base in such cases

globalisation territory and strategic alliances in different financial centres the debates about globalisation global finance and global cities appear to confuse global and international changes and seem a historical this paper begins with a sceptical assessment of globalisation and asks whether a globalised economy is really an internationalised one the paper then addresses an aspect of global finance the national impetus given to alliances between markets in major cities the financial derivatives markets particularly in europe are used to exemplify this trend and to question the degree to which electronic trading poses a threat to the economic welfare of the urban territories in which they are located in conclusion the prospect of major players in large financial centres becoming incorporated into the governance of urban policy is raised

budget deficits money growth and inflation the turkish evidence the paper investigates the long run relationships between budget deficits inflation and monetary growth in turkey considering two alternative trivariate systems corresponding to the narrowest and the broadest monetary aggregates while the joint endogeneity of money and inflation rejects the validity of the monetarist view lack of a direct relationship between inflation and budget deficits makes the pure fiscal theory explanations illegitimate for the turkish case consistent with the policy regime of financing domestic debt through the commercial banking system budget deficits lead to a growth not of currency seigniorage but of broad money in turkey this mode of deficit financing leading to the creation of near money and restricting the scope for an effective monetary policy may not be sustainable as the government securities broad money ratio cannot grow without limit

globalisation institutional structures and real estate markets in central european cities this paper examines the urban development process in post socialist cities of budapest prague and warsaw in the context of economic globalisation and societal transformation several factors have helped to shape the post socialist cities of central europe since the end of the 1980s these include political transformation economic change restitution privatisation price liberalisation and decentralisation of local government it is argued that local government administrative and planning structures have been ill prepared in meeting the requirements of international investment capital in a co ordinated and effective manner institutional constraints has promoted an organic form of urban development primarily determined through the international demand for and supply of commercial and retail space

changing urban systems in post communist societies in central europe analysis and prediction this paper is concerned with three levels of urban system changes changes in the intra urban structure of cities after the collapse of the communist regimes changes in the national or state urban systems i e inter urban systems and changes in the international system of capital cities in central europe the restoration of the land market and the removal of rent controls will lead to socially polarised neighbourhoods and new retail patterns the reintroduction of market economies will convert the socialist policy of even development into one of increased concentration on growth centres within deindustrialisation in which national capitals will play a greater role lastly at the international level national capitals will hierarchicise as in pre 1914 years and new dynamic frontier zones may arise

on the low frequency relationship between public deficits and inflation summary we estimate the low frequency relationship between fiscal deficits and inflation and pay special attention to its potential time variation by estimating a time varying vector autoregression model for us data from 1900 to 2011 we find the strongest relationship neither in times of crisis nor in times of high public deficits but from the mid 1960s up to 1980 employing a structural decomposition of the low frequency relationship and further narrative evidence we interpret our results such that the low frequency relationship between fiscal deficits and inflation is strongly related to the conduct of monetary policy and its interaction with fiscal policy after world war ii copyright 2015 john wiley sons ltd

deficit and money growth in the united states reply abstract evidence from annual data that larger federal government budget deficits have led to faster growth of the monetary base since world war ii is not robust to simple diagnostic checks against spurious regression

what would normalisation of economic relations between mashrek countries turkey and israel imply this article examines the potential for economic cooperation among mashrek countries turkey and israel in the fields of trade in goods and services both separately and across field it first describes the macroeconomic features of the region and then estimates the overall potential for inter industry trade in goods by estimating gravity equations for each country separately and the potential for intra industry trade using grubel lloyd indices the article also examines the potential for trade in specific services namely information and computer technology transport financial and health services

sovereignty and economic development the case of israel and palestine the future permanent economic agreement between israel and palestine will have to determine among other things the trade regime and whether there should be economic borders the decision will have to satisfy goals of economic development including a reduction in economic and social gaps between the two countries and questions of sovereignty we describe and analyse the evolution of the palestinian economy before and since the oslo agreements concerning the future agreement we discuss the tradeoffs between sovereignty and prosperity and argue for the establishment at first of economic borders and a regime of less than full integration

deficits money and inflation abstract this paper examines the interrelationships between monetary and fiscal policy specifically it seeks to determine whether government budget deficits influence monetary growth using a money supply model originally developed by barro we find that deficits have had a significant impact on the growth of the u s money supply throughout most of the period since 1961 such a relationship need not always hold it depends on whether government deficits place upward pressure on interest rates and whether the central bank monetizes the debt in an effort to stabilize interest rates

output effects of government purchases the theoretical analysis focuses on the distinction between temporary and permanent movements in government purchases under plausible conditions the temporary case involves an output response that is positive less than one to one with the change in government purchases and larger than that generated by an equal sized but permanent shift in purchase the equilibrium real rate of return rise in the temporary case but changes little in the permanent one defense purchases are divided empirically into permanent and temporary components by considering the role of temporary wars no temporary shifts in nondefense purchases were isolated empirical results verify an expansionary output effect for temporary purchases that exceeds that of permanent purchases the results for some other expectational hypotheses are found to be generally supportive of the theory

opening up international trade with eastern europe trade with eastern europe carl b hamilton and l alan winters previous economic policy in the soviet union and eastern europe sought to restrict international trade with market economies hence liberalization and reform should now lead to a huge increase in such trade this will have a major impact both on the reforming economies and on their new trade partners first we develop an empirical model of trade flows between existing market economies and use this to forecast long run trade flows as the former soviet union and eastern europe are reabsorbed into the world economy second we provide a more detailed analysis of one key sector agricultural trade we compare and contrast three regime changes reform in the east admission of the east to the ec cap and worldwide success on agricultural liberalization in the gatt third we adduce evidence of high quality human capital in eastern europe and argue that this will tend to confer a comparative advantage in quite sophisticated products we conclude by stressing that since trade cannot be permanently and profoundly unbalanced western market economies can enjoy potential gains from trade only if they allow market access to emergent producers from the former soviet union and eastern europe

government borrowing and monetary accommodation this paper re examines the relationship between treasury borrowing and monetary growth examined previously with annual data by barro niskanen and hamburger and zwick our analysis based on quarterly data produces evidence of a positive and significant impact of total treasury borrowing upon the growth of the monetary base for the 1954 i 1961 ii and 1961 iii 1974 iv periods but an insignificant coefficient for the barro expenditure variable when the coefficient instability during the 1961 iii 1980 iv period is corrected by a dummy variable technique thy debt coefficient is positive and significant and remains stable for this two decade period

policy impacts under rational expectations abstract this paper re examines for the u s the validity of the macro rational expectations mre hypothesis in contrast to most previous studies in this area the paper a considers the potential real effects of both monetary and fiscal policies b allows for possible endogeneity of these policies and c uses a joint non linear estimation methodology to distangle the hypothesis of rationality from that of neutrality the empirical results reject the joint mre hypothesis for both policies the results also indicate that policy non neutrality is the culprit behind such rejection this evidence offers further empirical support for macro rational expectations models where monetary and fiscal policies can due to some rigidities play a key role in stabilizing the real economy

budget deficits money growth and causality further oecd evidence abstract this paper investigates the causal linkage between budget deficits and money growth in seven major oecd countries using multivariate granger causality tests combined with akaike s aic criterion and zellner s iterative seemingly unrelated regressions the accommodation hypothesis that deficits granger cause positive long run changes in money growth is systematically rejected across all countries the reverse hypothesis that money growth granger causes long run changes in deficits is also rejected across countries these results suggest that monetary and fiscal policies are set independently in each of the oecd countries

does foreign policy determine foreign trade cointegration analysis of exports from selected countries to the middle east the paper analyses the relations between foreign policy and export performance the paper deals with exports of selected european countries and the usa to middle eastern countries including israel cointegration analysis is used to identify common stochastic trends in export series a long term relationship implies no significant influence of foreign policy differences on trade performance according to the johansen tests applied to bivariate and multivariate models german austrian dutch and eu exports to israel are cointegrated with the us exports while swiss exports are never cointegrated with the exports of these countries this result confirms the importance of foreign policy in trade performance

have large budget deficits caused rising trade deficits for the united states the 1980s have been years of both large and unprecedented trade deficits as well as massive federal budget deficits the trade deficit rose from 25 billion in 1980 to 124 billion in 1985 during this same period federal budget deficits soared from 74 billion in 1980 to more than 212 billion in 1985 it is widely believed that the u s trade deficit rose mainly because of the skyrocketing federal budget deficit presenting such a view are for example hutchison and pigott 25 hutchison and pyle 26 clark 11 modigliani 30 and aschauer 2 besides economists many labor unions i e afl cio and official government documents see the economic report of the president particularly of 1984 have all shared similar views the issues involved have important policy implications suppose that the basic reason for rising trade deficits is indeed the escalating federal budget deficit in this case policy makers may focus on curtailing the budget deficit in order to resolve the trade deficit problem that has adversely affected several sectors such as manufacturing industries and agriculture however if such a view concerning the causal role of the budget deficit is incorrect then reductions in the federal budget deficit may not resolve the trade deficit dilemma and moreover attention will be diverted from more relevant and urgently needed policy options 6 the purpose of this paper is to empirically investigate the conventional argument that high federal budget deficit has been the prime cause of the escalating u s trade deficit finding only partial empirical evidence to support it in section ii i argue that most of previous studies in this area appear flawed by a methodological error rendering their tests unreliable for discriminating between a number of equally plausible hypotheses section iii describes the data and methodology used in the paper section iv presents the empirical results section v summarizes and concludes the paper

federal deficits macro stabilization goals and federal reserve behavior the effects of federal deficits on federal reserve behavior as proxied by changes in the growth rate of the monetary base are analyzed in this study multivariate granger causality tests are employed in the analysis the deficit measure that is the focus of the analysis is the change in the real market value of privately held federal debt the tests indicate that the deficit granger causes the monetary base additionally concerns for financial market stability real output and exchange rate movements in the period of floating rates also affect federal reserve behavior

government deficits and money growth additional empirical evidence is provided concerning the impact of government financing decisions on monetary expansion in the united states for the post world war ii period the budget position of the fiscal authority and the rate of money growth set by the fed are specified as endogenous variables within a system of equations the empirical analysis generates evidence of a policy shift in the 1980s with budget deficits exerting no independent influence on high powered money growth prior to 1981 while after 1981 such a linkage is found to exist copyright 1990 by mit press

macroeconomic effects of budget deficits further international evidence abstract this paper investigates the effects of budget deficits on money growth inflation investment and real output growth using annual data from a sample of 32 countries the findings can be summarized as follows i deficits are generally not monetized and therefore they do not produce inflation via monetary expansions ii deficits are not inflationary even through their alleged aggregate demand effects iii deficits are negatively correlated with the rate of growth of real output but this may just reflect their countercyclical nature and iv increased deficits do appear to retard investment usually after one or two years jel e63 h62

inflation and government deficits there is a pronounced positive correlation of inflation andgovernment deficits in the united states since world war ii the purpose of this paper is to test the three leading explanationsof this correlation these three explanations are a a deficitincreases prices through a wealth effect b a deficit results inthe federal reserve purchasing debt thus increasing the moneysupply and prices and c expected inflation increases the deficit which is the change in the nominal value of bonds no supportis found for either of the first two hypotheses the results indi cate that expected government deficits have no significance forfuture inflation since world war ii the united states has experienced large federal government deficits and a sustained peacetime inflation three differentconnections between the deficits and inflation are prominent in theliterature the most direct connection between government deficits and inflationis that by increasing the real value of outstanding bonds and perceived netwealth a deficit can raise total spending and the price level this connec tion is also the most long standing and is suggested by metzler 1951 andpatinkin 1965 for example monetarists generally and buchanan and wagner 1977 in particularhave emphasized a different link between deficits and inflation they sug gest that the federal reserve purchases government bonds when the trea sury sells bonds thus increasing high powered money the money supply and the price level the federal reserve might behave this way for exam ple because it is attempting to hold down interest rates on governmentsecurities when deficits occur recently barro 1978 1979 has put forward a hypothesis that deficitsare a result of inflation rather than inflation being a result of deficits thegovernment deficit is the change in the nominal value of outstanding gov ernment bonds if the anticipated inflation rate increases then the nomi nal value of bonds must increase i e the government will run a deficit tokeep the same anticipated real amount of bonds all three of these possible connections between government deficitsand inflation are consistent with the observed positive correlation of defi cits and inflation the implications however are strikingly different con

the nonmonetary effects of financial factors during the interwar period i introduction in a monetary history of the united states friedman and schwartz 1963 attributed the enormous decline in real output and prices during the great depression of 1929 1933 to an unprecedented fall in the supply of money while there is much support today for the view that money played an important role in this episode many economists feel that this variable alone does not provide a sufficiently complete explanation of the link between the chaotic conditions in the u s financial sector and aggregate output and prices bernanke 1983 contended in an influential paper that financial shocks had important nonmonetary effects on aggregate economic activity in addition to their effects via the supply of money rather than consider the 1929 33 episode outside of its context bernanke widened his sample to include the entire interwar period which he defined as january 1919 december 1941 the major purpose of this paper is to present empirical evidence on the importance of the nonmonetary effects of financial factors in explaining fluctuations in real output and prices during the interwar period we define the interwar period as august 1922 june 1938 by omitting from our sample a few years immediately following world war i and immediately preceding world war ii we avoid the potential problems connected with war related government expenditures and autonomous gold flows discussed in joines 1985 our interwar period corresponds closely to the four peacetime cycles identified by firestone 1960 the theoretical literature on the nonmonetary effects of financial factors focuses on two related but distinct aspects 1 first studies by bernanke and blinder 1988 williamson 1987a 1987b bernanke and gertler 1987 and scheinkman and weiss 1986 demonstrate that the efficiency with which banks perform their intermediation function is an independently important determinant of the level of real economic activity second bernanke and gertler 1989 1990 gertler and hubbard 1988 and calomiris and hubbard 1990 focus on the effects of shocks to borrowers net worth positions on aggregate economic activity this approach suggests that exogenous shocks to borrowers net worth may be a source of economic fluctuations therefore for example to the extent that a deflation is unanticipated it is likely to erode borrowers net worth and thereby adversely affect aggregate economic activity beginning with fisher 1933 this deflation story has played an important role in studies such as bernanke 1983 hamilton 1987 and bernanke and james 1990 that attempt to explain the great depression in evaluating the effects of financial sector shocks during the great depression bernanke 1983 argued that in addition to the traditional monetary effects of adverse shocks to financial intermediation stressed by friedman and schwartz 1963 these shocks increased the cost of credit intermediation which in turn led to credit contraction rejection of otherwise profitable projects and subsequent falls in output to test this hypothesis bernanke included the deposits of failing banks and the liabilities of failing businesses as joint proxies for the cost of credit intermediation in a barro 1977 type output equation that also included unanticipated money both the deposits of failing banks and liabilities of failing businesses were found to be significant moreover dynamic simulations of the path of output for the period between mid 1930 and march 1933 accounted for substantially more of the actual decrease in output than was captured when only unanticipated money was included in the output equation in place of the joint proxies bernanke also used the yield differential between baa corporate and long term u s government bonds as a proxy for credit intermediation costs in all cases entry of the credit cost proxies significantly increased the percentage of the decline in output that was captured

deficits and the demand for money in recent years the large budget deficits of the federal government have renewed interest in the effects of government debt on private sector behavior to date empirical research has focused on the relationship between debt and two key variables consumption and interest rates by contrast empirical research on the effects of government debt on other variables of interest to macroeconomists is limited this paper examines the relationship between government debt and one such variable real money balances the neglect of government debt as a determinant of money demand is surprising many traditional macroeconomic models such as blinder and solow s 9 influential work include government debt as an argument to the money demand function moreover macroeconomic theorists have long been aware that a government debt money demand relationship has important implications for the efficacy of fiscal policy 2 this paper examines the relationship between government debt and real money holdings over the 1950 1990 period a positive money debt relationship was previously noted by butkiewicz 12 and deravi hegji and moberly 15 hereafter referred to as dhm our work improves upon this research in two ways first in contrast to butkiewicz 12 and dhm 15 we investigate the time series properties stationarity cointegration of relevant variables second we distinguish between supply side and demand side explanations of the debt money relationship the explanation advanced by butkiewicz 12 and dhm 15 is that an increase government debt is perceived by the private sector as an increase in net wealth and hence should increase money demand 3 this explanation ignores a potentially important connection between government debt and money supply if the federal reserve monetizes debt and if the private sector s adjustment to this monetization is lagged then debt and real money balances will exhibit a positive correla

presidential politics budget deficits and monetary policy in the united states 1960 1976 this paper has focused on the extent to which the traditional tools of macroeconomic management in the united states monetary and fiscal policy have contributed to a political business cycle regardless of whether politicians can successfully influence real economic variables to their own ends the evidence presented here suggests that they tried and that they enjoyed some at least indirect aid from their independent monetary authorities in doing so several major conclusions emerge

the relationship between budget deficits and money demand evidence from a small economy a considerable number of empirical studies exploring the links between budget deficits and the demand for money have led to mixed results by using annual data of the greek economy and previous empirical studies this paper empirically evaluates the sensitivity and validity of the keynesian proposition and the ricardian equivalence hypothesis the paper employs cointegration ecm methodology and several diagnostic and specification tests the empirical findings show a significant and positive relationship between budget deficits and the demand for money supporting the keynesian model

inequality and trust in sweden some inequalities are more harmful than others we present new evidence on the influence of income inequality on generalized trust using individual panel data from swedish counties together with an instrumental variable strategy we find that differences in disposable income and especially differences among people in the bottom half of the income distribution are associated with lower trust the relationship between income inequality and trust is particularly strong for people with a strong aversion against income differentials we also find that the proportion of people born in a foreign country is negatively associated with trust

money as meta rule buchanan s constitutional economics as a foundation for monetary stability this paper explores james buchanan s contributions to monetary economics and argues these contributions form the foundation of a robust monetary economics paradigm while often not recognized for his contributions to monetary economics buchanan s scholarship offers important insights for current debates especially the renewed interest in narrow banking in the wake of the financial crisis we argue that the post 2007 crisis milieu creates a unique opportunity to recognize as buchanan did the vital role that money plays in the market as the grammar of commerce that recognition makes the need for more fundamental reform of our monetary regimes at the constitutional level more apparent making buchanan s work on monetary constitutions more relevant than ever before we then discuss how adopting buchanan s monetary framework can improve both monetary scholarship and institutions

territorial competition and globalisation scylla and charybdis of european cities policy makers in europe have been concerned with developing and sustaining the competitiveness of their cities this concern comes from the view that the determing parameter of urban regions is globalisation by engaging in a process of territorial competition the economic and social welfare of cities constituent territories can be maintained what this paper argues is that there is a danger that territorial competition is as much an abstraction as globalisation and its application to policy making will bring about distortions in economic development by examining the specification of globalisation and territorial competition and the relevant literature a debate may be initiated in which the consequences for the economic environment of european cities are addressed the discussion is given some context by drawing on the cursory examples one global and one local of london and lille

deficits and money growth in the united states a comment joines 1985 argues that the federal reserve accommodates war induced deficit spending but not non war induced deficit spending using a first difference form of a reaction function to obtain a stationary time series of the monetary base we find that the federal reserve has accommodated federal government deficit spending in the post world war ii period

the influence of elections on federal reserve behavior a political business cycle is tested in a monetary reaction function positive evidence is a result of the 1930s and 1940s and not post war elections in addition there is no evidence of such a cycle in a rational expectations model

international transmission of us macroeconomic policy and the inflation record of western europe abstract the interaction between monetary policy government budget deficits and inflation is examined for the four largest western european economies comprising france italy the united kingdom and west germany in order to assess the possible impact of us macroeconomic policy past us monetary base growth deficits and inflation rates are included in the set of explanatory variables for each of the european countries empirical results for the 1962 2 1985 4 sample period reveal interplay between domestic monetary and fiscal policy to be augmented by a significant impact of the us variables across all four countries in the sample

federal deficits and money growth in the united states a vector autoregressive analysis abstract a multivariate var modelling technique is employed in this paper to test for causality between federal deficits and money growth in the united states four alternative causality hypotheses including the common accommodation view are examined in addition to the two policy variables four other related macro variables are included in the empirical analysis namely short term interest rates prices real output and exchange rates the var results consistently reject the accommodation hypothesis and indicate that monetary and fiscal policy actions are set independently in the united states other causality inferences are also obtained and their implications are discussed

seigniorage and tax smoothing in the united states 1914 1986 abstract when monetary and fiscal authorities cooperate to minimize the distortionary costs of financing an exogenous stream of government expenditures barro s tax smoothing model implies a long run relationship between tax revenues and inflation previous empirical tests of this relationship are reinterpreted in light of recent work on cointegration and are shown to hold only when stochastic temporal variation in the excess burden of taxes and seigniorage is transitory in nature a new test that holds in the presence of nonstationary disturbances is developed and applied annual u s data from the period 1914 to 1986 reject the revenue smoothing hypothesis

the use of inputs by the federal reserve system an extended model recently it has been argued that bureaucratic incentives play an important role in the formulation of policy and the inflationary bias of the federal reserve system shughart and tollison 1983 hereafter s t 1 in particular s t maintain that the fed can retain profits denominated in amenities but not in dollars as a result of the congressional constraint that excess profits be returned to the treasury this constraint provides bureaucratic incentives for the fed to purchase more amenities than a for profit organization and ex plains s t 1983 291 in part the fed s apparent inflationary bias expansionary monetary policy then enlarges the fed s profit amenities choices and allows it to pursue its goal of bureaucratic enhancement s t assume that the dollar value of these amenities is a monotonic transformation of fed employment using this public choice framework they develop a model in which the monetary base is a function of a number of variables including employment in the federal reserve system sysemp

seasonality and the monetization of federal budget deficits prior findings that federal government budget deficits promptly lead to increases in the monetary base are unreliable these findings are due largely to inadequate treatment of seasonality in post war quarterly data once seasonality is properly modeled no further short run relation is apparent theory suggests that there may be a long run relation between deficits and money growth if such a relation exists the sample of postwar u s data is too small to identify it

factors affecting monetary policy in an era of inflation abstract a money supply reaction function is developed and estimated within the context of an is lm framework to test the responsiveness of the federal reserve to the government budget restraint and certain parameters of the model the results reveal that a large portion of the recent expansion of the monetary base may be attributed to increases in government debt and provide an essential first step in quantifying the inflationary impact of deficits the monetary base is also expanded in response to increases in inflationary expectations and previous increases in the monetary base but is not statistically correlated to changes in the unemployment rate or potential national income or to rises in interest rates caused by sources other than higher inflationary expectations previous monetary policy or the treasury borrowing requirement

deficits and money growth in the united states 1872 1983 abstract this paper reports empirical evidence on the relation between government budget deficits and the growth of high powered money in the united states high powered money growth appears to be positively related to war spending during periods when such spending is a substantial fraction of gnp there is little evidence that the growth of high powered money is related to the non war government deficit measured either in cash or in real terms after controlling for the level of overall economic activity

a theoretical framework for the functioning of the dutch property market in this article a theoretical framework will be presented to aid understanding of the functioning of property markets more particularly the dutch property market it will be argued that traditional urban economic theories are not able to explain the structure and processes of the built environment in the dutch case we are confronted with two problems first to find a way in which urban economic theories designed for a context of cities in great britain and the us can be used to explain urban development that takes place in the different context of dutch cities and secondly to formulate a set of hypotheses appropriate for the dutch property market the hypotheses concern the strategies of individual actors on the property market and the underlying factors it is concluded that in general the relation between institutional structure and property development has been neglected both because of insufficient attention from economic scientists and because empirical research is very complicated

the structure of trust in china and the u s this article investigates the structure of trust in china and compares it with the u s using the 2000 and 2005 waves of the world value survey wvs we analyze two dimensions of trust trust in people and trust in major companies it is found that the level of trust has remained stable in china within the 5 year period on the other hand trust in major companies has declined dramatically in u s while trust in people has increased slightly the structure of trust in companies is different from trust in people for both countries individuals with higher education tend to have a higher level of trust individuals who are divorced tend to have lower trust in people individuals who think that other people are fair are more likely to trust in people preference for competition has a positive effect on trust in major companies on the other hand some differences between the two countries are observed perception of fairness does not affect trust in major companies in china while it has a positive effect in u s in year 2006 preference for equality has a negative effect on trust in major companies in u s but no significant effect in china the pattern of trust and its changes over time may reflect differences in market conditions in the two economies

deficits money and inflation comment abstract this paper re examines the fiscal policy money growth linkage analysed by hamburger zwick 1981 in this journal newly revised national income accounts data are employed unlike hamburger zwick we do not find any strong evidence of a positive federal budget deficit money growth relationship over the period 1961 1974 when the estimation period is extended to 1976 and then to 1978 the results suggest no relationship between deficits and money growth

does marketing activity contribute to a society s well being the role of economic efficiency does the level of marketing activity in a country contribute to societal well being or quality of life does economic efficiency also play a positive role in societal well being does economic efficiency also moderate or mediate the marketing activity effect on societal well being marketing activity refers to the pervasiveness of promotion expenditures and number of retail outlets per capita in a country economic efficiency refers to the extent to which the economy is unhampered by corruption burdensome government regulation and a large informal economy we used secondary data from the world bank and other statistical sources to answer these questions our study findings suggest that both marketing activity and economic efficiency contribute positively to societal well being and that economic efficiency plays more of a mediator than moderator role between marketing activity and societal well being the public policy implication of this study is that increases in marketing activity and economic efficiency in countries characterized as low on both dimensions should significantly increase the quality of life in those countries