文档介绍：PACIFIC BASIN FINANCE ECONOMICS AND ACCOUNTING
PISCATAWAY, NEW JERSEY– JUNE 10-11, 2005
Financial Returns and a General Equilibrium Approach in a q,Y Space
ERMELINDA LOPES
Dept. of Economics
School of Economics and Management
Minho University
Braga – PORTUGAL
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ABSTRACT:
This paper emphasizes the analysis of financial markets and its relations with ary stability as well as its implications on general equilibrium.
The financial market, . the markets for money and financial assets, influence the real markets changing the consumption, production and investment decisions. In fact, neither all interdependences between markets have been considered by theoretical research, but its effects are strong both on real and ary economy. The economic policy through its ary and fiscal branches manages the transmission mechanisms assuming to exist a very broad surface of contact between financial and real markets. By this way, market prices and interest rates on all types of assets induce challenges from ary and financial markets to real markets.
The integration of real and financial conditions in central economic theory is considered a very important issue on Tobin’s research, that make sense continue to stimulate for a long time e. Additionally, in an era of economic and financial integration the interrelations between real and financial conditions, will be increasing and stronger, being more diversify the transmission mechanism and, traditional interest es each more as vehicle less important or even, not operational, as is the case, when demand for money only depend of e. The long run implications of government budget deficits, pressure the money demand curve to this situation, as well as the assets speculations. With contributions of Tobin is possible another theoretical explanation of general equilibrium being IS/LM constructed in q,Y space.
Keywords: Financial globalization, q-theory and general equilibrium.
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