the long run relationship between nominal interest rates and inflation the fisher equation revisited stable url http links jstor org sici sici 0022 2879 28199602 2928 3a1 3c102 3atlrbni 3e2 0 co 3b2 2journal of money credit and banking is currently published by ohio state university press your use of the jstor archive indicates your acceptance of jstor s terms and conditions of use available athttp www jstor org about terms html jstor s terms and conditions of use provides in part that unless you have obtainedprior permission you may not download an entire issue of a journal or multiple copies of articles and you may use content inthe jstor archive only for your personal non commercial use please contact the publisher regarding any further use of this work publisher contact information may be obtained athttp www jstor org journals ohio press html each copy of any part of a jstor transmission must contain the same copyright notice that appears on the screen or printedpage of such transmission the jstor archive is a trusted digital repository providing for long term preservation and access to leading academicjournals and scholarly literature from around the world the archive is supported by libraries scholarly societies publishers and foundations it is an initiative of jstor a not for profit organization with a mission to help the scholarly community takeadvantage of advances in technology for more information regarding jstor please contact support jstor org http www jstor orgmon aug 27 13 58 08 2007

liquidity effects and the monetary transmission mechanism several recent papers provide strong empirical support for the view that an expansionary monetary policy disturbance generates a persistent decrease in interest rates and a persistent increase in output and employment existing quantitative general equilibrium models which allow for capital accumulation are inconsistent with this view there does exist a recently developed class of general equilibrium models which can rationalize the contemporaneous response of interest rates output and employment to a money supply shock however a key shortcoming of these models is that they cannot rationalize persistent liquidity effects this paper discusses the basic frictions and mechanisms underlying this new class of models and investigates one avenue for generating persistence we argue that once a simplified version of the model in christiano and eichenbaum 1991 is modified to allow for extremely small costs of adjusting sectoral flow of funds positive money shocks generate long lasting quantitatively significant liquidity effects as well as persistent increases in aggregate economic activity

the effects of national culture on corporate social responsibility disclosure a cross country comparison this article presents a cross country analysis of the influence of national culture on corporate social responsibility csr disclosure we analyse the relationship between the hofstede s cultural

being good while being bad social responsibility and the international diversification of us firms this paper contributes to the discussion on international diversification and corporate social responsibility csr by suggesting that firms can be simultaneously socially responsible and socially irresponsible to test our assertions we analyze data from 222 publicly traded us firms from 1993 to 2003 the findings support our hypotheses and have significant implications for the way in which we conceptualize csr

the dynamic effects of aggregate demand and supply disturbances we interpret fluctuations in gnp and unemployment as due to two types of disturbances disturbances that have a permanent effect on output and disturbances that do not we interpret the first as supply disturbances the second as demand disturbances demand disturbances have a hump shaped mirror image effect on output and unemployment the effect of supply disturbances on output increases steadily over time peaking after two years and reaching a plateau after five years

how ethical behavior of firms is influenced by the legal and political environments a bayesian causal map analysis based on stages of development even though potential impacts of political and legal environments of business on ethical behavior of firms ebof have been conceptually recognized not much evidence i e empirical work has been produced to clarify their role in this paper using bayesian causal maps bcms methodology relationships between legal and political environments of business and ebof are investigated the unique design of our study allows us to analyze these relationships based on the stages of development in 92 countries around the world the ebof models structured through bcms are used to explain how ebof in a given country group are shaped by how managers perceive political legislative and protective environments of business in these countries the results suggest that irregular payments and bribes are the most influential factors affecting managers perceptions of business ethics in relatively more advanced economies whereas intellectual property protection is the most influential factor affecting managers perceptions of business ethics in less advanced economies the results also suggest that regardless of where the business is conducted in the world judicial independence is the driving force behind managers perceptions of business ethics in addition the results of this study provide further support for scholars who argue that business ethics is likely to vary among countries based on their socio economic factors in addition to its managerial implications the study provides directions for policy makers to improve the ethical conduct of businesses in their respective countries

does equity ownership matter for corporate social responsibility a literature review of theories and recent empirical findings based on the concept of shareholder primacy many scholars have argued that it is more important for businesses to earn profits for their shareholders than to provide benefits to society at large corporate social responsibility csr is often regarded as an investment that comes at the expense of shareholders in contrast research analyzing the connections between the equity ownership structure of a company and its level of csr engagement suggests that csr offers benefits to shareholders that go beyond direct financial returns from investments this study provides a comprehensive review and systematic assessment of theoretical considerations and approaches regarding different forms of equity ownership and their relationships to csr and it discusses the relevant benefits and motivations of shareholders the perceived value of these csr benefits varies among different types of shareholders as they assign unequal values to short term financial or to rather long term csr benefits based on a literature sample of 146 publications this review demonstrates central problems inherent in previous analyses given the ambiguous and partially contradictory findings of prior research this study identifies potential moderating influences that help clarify empirical evidence a contingency approach is suggested in future research as this can help resolve the problem of contradictory empirical findings and theoretical arguments

stochastic trends and economic fluctuations are business cycles mainly the result of permanent shocks to productivity this paper uses a long run restriction implied by a large class of real business cycle models identifying permanent productivity shocks as shocks to the common stochastic trend in output consumption and investment to provide new evidence on this question econometric tests indicate that this common stochastic trend cointegration implication is consistent with postwar u s data however in systems with nominal variables the estimates of this common stochastic trend indicate that permanent productivity shocks typically explain less than half of the business cycle variability in output consumption and investment copyright 1991 by american economic association

financing new venture exporters this paper investigates the demand for and access to financing for young small and medium sized enterprises smes the work compares theoretically and empirically two sets of new firms those that export and those that do not export as to the frequency with which they seek and obtain external financing the work hypothesizes that new growth firms and new exporter firms are especially likely to seek external financing yet less likely to obtain financing empirical findings confirm these expectations demonstrating that young growth firms were more likely than non growth firms to seek all forms of capital and exporters were particularly likely to apply for equity and trade credit commercial lenders were less likely to approve loan applications from early stage growth firms and especially so for applications from young growth oriented sme exporters the implications of these results for research and public policy are discussed

long run income and interest elasticities of money demand in the united states econometric techniques designed to accommodate nonstationary data are used to reexamine the stability of interest and income elasticities of money demand in the united states estimates based on postwar monthly data reveal a stable relationship between m1 velocity and various measures of interest rates that proxy the opportunity cost of holding money balances tests for the existence of cointegration and methods used to estimate the income and interest elasticities are based on procedures prescribed by soren johansen 1988 corresponding error correction estimates offer insight as to the dynamics of the process that maintains the equilibrium relation between velocity and interest rates copyright 1991 by mit press

corporate social responsibility in the multinational enterprise strategic and institutional approaches what is the relationship of global and local country specific corporate social responsibility csr to international organizational strategy applying the strategic logic of the bartlett and ghoshal typology to the realm of csr multinational firms should respond to pressures for integration and responsiveness from salient stakeholders however an institutional logic would suggest that multinational firms will simply replicate the existing product market organizational strategy multidomestic transnational global in their management of csr these alternative approaches are tested with a survey instrument sent to mnes operating in mexico the results of this study are consistent with the proposition that institutional pressures rather than strategic analysis of social issues and stakeholders are guiding decision making with respect to csr we develop implications for mne management and research as well as public policy

prices output and hours an empirical analysis based on a sticky price model abstract i show that a simple sticky price model based on rotemberg 1982 is consistent with a variety of facts concerning the correlation of prices hours and output it is consistent with the negative correlation between forecastable movements in prices and output as well as the smaller negative correlation between forecastable movements in prices and hours it is also consistent with the positive correlations of unexpected movements in prices output and hours these patterns are harder to reconcile with the flexible price version of the model in particular they require that money respond differently to forecastable and to unforecastable real shocks

corporate social responsibility and corporate governance role of context in international settings this research aims to explore the relationship between corporate governance and csr what are the major factors that play a direct role in the establishment of this relationship how does context and institutional background impact upon the relationship between csr and governance using in depth semi structured interviews from two types of governance systems in three countries over three years this study has demonstrated that in practice within different settings csr is being used both as a strategy as well as a reaction to different drivers we call this adaptive governance where governance can be defined as a flexible system of action incorporating strategic and monitoring activities that determines the way a company enacts its responsibilities to its shareholders and stakeholders and which is determined at any given time by the interrelationship of institutional drivers and behavioural norms governance systems and their interrelationships with csr are demonstrated as fluid according to the national and institutional context economic situation and industry impact in the eyes of practitioners corporate governance includes both structural and behavioural factors as well as responsibilities and actions towards shareholders and stakeholders contextual factors that this research highlights to be important to the incorporation of csr into governance include the economic environment national governance system regulation and soft law shareholders national culture behavioural norms and industry impacts hypotheses on the impact of institutional contexts industry impacts and economic situations on different types of csr actions are proposed for further research

a traditional interpretation of macroeconomic fluctuations under the traditional interpretation of macroeconomic fluctuations aggregate demand shocks move output and prices in the same direction while aggregate supply shocks move output and prices in opposite directions this paper examines the joint behavior of u s output unemployment prices wages and nominal money and asks whether it is consistent with this interpretation the answer is a qualified yes

how well does the is lm model fit postwar u s data postwar u s time series for money interest rates prices and gnp are characterized by a multivariate process driven by four exogenous disturbances those disturbances are identified so that they can be interpreted as the four main sources of fluctuations found in the is lm phillips curve model money supply money demand is and aggregate supply shocks the dynamic properties of the estimated model are analyzed and shown to match most of the stylized predictions of the model the estimated decomposition is also used to measure the relative importance of each shock to interpret some macroeconomic episodes and to study sources of permanent shocks to nominal variables

identification long run relations and fundamental innovations in a simple cointegrated system this paper examines the roles played by innovations identified from a simple four variable var characterized by cointegration using knowledge of cointegration rank and textbook relations that link macroeconomic aggregates we identify distinct real and nominal innovations that dictate the long run behavior of the model we also examine the explanatory power of transitory innovations that are orthogonal to these permanent shocks one of the permanent shocks displays all the characteristics of a technology or supply innovation while one of the transitory innovations identified by imposing short run price rigid ity is interpretable as a demand side impulse the permanent nominal shock bears the imprint of an innovation in aggregate inflation expectations historical decomposition and comparison with variables that are external to the model reveals the relative importance of the shocks at various episodes

the mnc as an agent of change for host country institutions fdi and corruption most empirical research examines how the institutional environment of corruption shapes the behavior of multinational corporations mncs in this study we would like to highlight the other side of the picture how the presence of mncs may shape the institutional environment of corruption over time we propose three avenues through which the mncs may have an impact on its host institutions regulatory pressure effect demonstration effect and professionalization effect based on extensive data on foreign direct investment and corruption for a large sample of countries over the last 30 years the empirical results are generally consistent with our hypothesis such findings provide a glimmer of hope for the future of the host country where corruption is prevalent

cultural and leadership predictors of corporate social responsibility values of top management a globe study of 15 countries this paper examines cultural and leadership variables associated with corporate social responsibility values that managers apply to their decision making in this longitudinal study we analyze data from 561 firms located in 15 countries on five continents to illustrate how the cultural dimensions of institutional collectivism and power distance predict social responsibility values on the part of top management team members ceo visionary leadership and integrity were also uniquely predictive of such values

the stability of long run money demand in five industrial countries abstract this study provides strong evidence for the stability of long run demand functions for narrowly defined money m1 in five industrial countries u s japan canada u k and west germany using post war quarterly data evidence of stability is examined using two different estimation techniques and through a formal test of parameter constancy designed specifically for cointegrating vectors in the majority of these countries the key to stability is the imposition of a unitary long run income elasticity that is rarely rejected by the data

do expected shifts in inflation affect estimates of the long run fisher relation recent empirical studies suggest that nominal interest rates and expected inflation do not move together one for one in the long run a finding at odds with many theoretical models this article shows that these results can be deceptive when the process followed by inflation shifts infrequently we characterize the shifts in inflation by a markov switching model based upon this model s forecasts we reexamine the long run relationship between nominal interest rates and inflation interestingly we are unable to reject the hypothesis that in the long run nominal interest rates reflect expected inflation one for one

corporate social responsibility in europe and the u s insights from businesses self presentations the paper compares the extent and content of businesses communications about corporate social responsibility csr in france the netherlands the u k and the u s in particular the study investigates the nature of csr principles processes and stakeholder issues discussed in web pages the results show that businesses in the four countries do not display the same eagerness to appear as socially responsible and employ diverse means to convey social responsibility images

corporate social responsibility and different stages of economic development singapore turkey and ethiopia the u s and u k models of corporate social responsibility csr are relatively well defined as the phenomenon of csr establishes itself more globally the question arises as to the nature of csr in other countries is a universal model of csr applicable across countries or is csr specific to country context this article uses integrative social contracts theory isct and four institutional factors firm ownership structure corporate governance openness of the economy to international investment and the role of civil society to examine csr in singapore turkey and ethiopia field research results illustrate variation across the institutional factors and suggest that csr is responsive to country differences research findings have implications for consideration of the tradeoff between global and local csr priorities and practices

the non neutrality of inflation for international capital movements this paper studies the question of how unilateral changes in the rate of inflation affect the international allocation of capital presenting a model that incorporates a transaction motive for money holding and capital income taxation with historical cost accounting it counters the view that inflation will be neutral in a world of perfect foresight and costless arbitrage under mild conditions domestic inflation will unambiguously induce a capital export the paper includes a discussion of the fisher effect the empirical observation of a less than one to one translation of inflation into nominal interest rates is shown to be compatible with the model and in fact the capital export turns out to be stronger the lower the degree of translation

stochastic trends and economic fluctuations in a small open economy in this paper we describe how restricted vector autoregressions can be employed to examine the sources of macroeconomic fluctuations we show how cointegration restrictions can be used to identify a var system with common stochastic trends subject to transitory and permanent changes in average growth and how we may investigate the system s responses to permanent shocks i e to innovations to the trends theoretical cointegration vectors are derived from a small open economy growth model for terms of trade real gdp real consumption and real investments applying these methods to swedish annual data 1875 1986 we find that permanent real supply shocks account for most of the fluctuations in gdp even in the short run