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International audience; This paper applied the capital-asset pricing model (CAPM) to determine stock returns of listed firms in the Nigeria Stock Exchange (NSE). For the purpose of investigation, annual data on stock price of twenty six (26) listed firms, Treasury bill a measure of risk-free rate and all share indexes a proxy for market returns were extracted while beta value was computed for the period 2010 to 2016 upon which the model was analyzed. Finding indicates that the CAPM generated a very high return among the firms given the influence of the beta coefficient. The study concludes that higher market risk measured by beta, is associated with higher expected returns. It is therefore recommended that managers of firms in other sectors in Nigeria need to constantly use this model to price security return with a view to guiding investors at investing in securities based on risk preference behavior and also to enable them maximize wealth from a basket of portfolio. .

International audience; The purpose of this article is to highlight the added value of Jean Cartelier's monetary theory as set out in his 2018 book, in the continuity of work that began in the early 1980s. The interest of Cartelier's monetary approach in relation to traditional theories of value can be broken down into three themes: the coordination of economic agents' decisions in a market society that is by definition decentralized; the highlighting of a plurality ofeconomic relations, through the introduction of asymmetric relations between active and non-active individuals; the problem of viability, which seems more relevant for analyzing economic dynamics.; L'objet de cet article est de mettre en lumière la valeur ajoutée de la théorie monétaire de Jean Cartelier telle qu'elle est exposée dans son ouvrage de 2018, dans la continuité de travaux qui ont débuté dès le début des années 80. L'intérêt de l'approche monétaire de Cartelier par rapport aux théories traditionnelles de la valeur se décline en trois thèmes : la coordination des décisions des agents économiques dans une société marchande par définition décentralisée ; la mise en évidence d'une pluralité de relations économiques, par l'introduction de relations asymétriques entre individus actifs et non-actifs ; la problématique de la viabilité qui semble plus pertinente pour analyser la dynamique économique. Mots-clés : coordination. monnaie. déséquilibre.

This paper reconsiders the Fisherian equation of exchange by explicitly distinguishing two types of transactions associated with industrial circulation, on the one hand, and financial circulation, on the other. In this context, a formal link can be established between the financialization of the economy and the downward trend in the income velocity of money during the last decades.; Ce papier reconsidère l’équation fisherienne des échanges en distinguant explicitement deux types de transactions associées, d’une part, à une circulation industrielle et, d’autre part, à une circulation financière. Dans ce cadre, un lien peut être établi entre la financiarisation de l’économie et la baisse tendancielle de la vitesse-revenu de circulation de la monnaie des dernières décennies.

The paper offers theoretical discussion and modelling showing that -in accordance to the post Keynesian approach to endogenous money- the credit-worthy demand for loans determines the supply of loans at the prevailing interest rate, while -in accordance with Keynes's liquidity preference theory- the rate of interest is endogenously determined as to equalize the demand and supply of liquidity-money in terms of stocks. As a consequence, the markup reflected in the spread between the central bank refinancing interest rate and the market interest rate is endogenously determined by the total demand and supply of liquidity-money. The paper also argues that, while the central bank effectively controls the base interest rate, additional conditions are required to control the liquidity-money market interest rate, owing to the conventional nature of the rate of interest Keynes pointed out.

In most macroeconomic models inflation tends to be harmful. In this article, we show that by simply changing the timing of production decisions by firms from “on demand” to “in advance,” some inflation can boost welfare as long as goods are sufficiently perishable. The main conclusion from this research is that by effectively hiding the strategic interaction between supply and demand, assuming production on demand is not without loss of generality.

International audience; In recent years some economists have begun to doubt the scientific standing of the standard Austrian theory of the origin of money. They seem to think that it is only one possible solution to the problem of accounting for money’s value. Of these economists, Gary North (North 2012b) has presented the most cogent count-er-interpretation to how we should understand the theory of the origin of money as elaborated by Carl Menger and Ludwig von Mises. Unlike the rest of economic theory, the origin of money and Mises’s regression theorem do not partake of the character of a scientific law deduced from the basic principles of the science, but is rather, and is presented as such in the writings of Menger and Mises, what North terms “conjectural history.” In this essay we will respond to North’s challenge and to the economists who agree with him.

Les monnaies alternatives sont des dispositifs monetaires mis au service d’une transformation socioeconomique. Depuis le debut des annees 1980, elles se sont multipliees et se sont diversifiees dans un grand nombre de pays, selon une ampleur inedite a l’echelle des societes industrielles. C’est un bilan analytique de cette dynamique que propose cet ouvrage. Dans ce but, il etablit une typologie des monnaies alternatives en sept groupes, des SEL aux cryptomonnaies en passant par les banques de temps et les monnaies locales. Apres avoir precise les finalites et les cadres theoriques et doctrinaux de ces monnaies, il distingue des monnaies par lesquelles est recherchee en priorite une transformation sociale et d’autres par lesquelles c’est l’orientation du systeme economique qui est d’abord visee. Il analyse la place respective de l’echange marchand et de la reciprocite selon les dispositifs. Il evalue enfin leurs reussites et leurs difficultes, en soulignant les deux enjeux importants que sont leur contribution a une radicalisation democratique et l’hypermonetarisation qu’elles favorisent.

International audience; This book is the first complete survey of the evolution of monetary institutions and practices in Western countries from the Middle Ages to today. It radically rethinks previous attempts at a history of monetary institutions by avoiding institutional approach and shifting the focus away from the Anglo-American experience. Previous histories have been hamstrung by the linear, teleological assessment of the evolution of central banks. Free from such assumptions, Ugolini’s work offers bankers and policymakers valuable and profound insights into their institutions.Using a functional approach, Ugolini charts an historical trajectory longer and broader than any other attempted on the subject. Moving away from the Anglo-American perspective, the book allows for a richer (and less biased) analysis of long-term trends. The book is ideal for researchers looking to better understand the evolution of the institutions that underlie the global economy.

International audience; This paper examines quantity-targeting monetary policy in a two-period economy with fiat money, endogenously incomplete markets of financial securities, backed by collateral. Non-conventional monetary policy of injecting money results in three scenarios compatible with the equilibrium conditions: 1) the economy enters a liquidity trap; 2) thanks to money creation, markets function orderly at the cost of inflation; 3) the money fuels a financial bubble whose bursting leads to debt-deflation. This dilemma of monetary policy highlights the default channel affecting trades, and provides a rigorous foundation to Fisher's debt deflation theory as being distinct from Keynes' liquidity trap.; Cet article examine les politiques monétaires non-conventionnelles dans un modèle d'équilibre général à deux périodes. Les agents échangent, par l'intermédiaire de monnaie, des biens et également des actifs financiers collatéralisés. Une politique non-conventionnelle d'augmentation de la quantité de monnaie entraîne l'existence de seulement trois scénarios compatibles avec les conditions d'équilibre: 1) l'économie rencontre une trappe à liquidité; 2) la création monétaire rend possible les échanges, au prix de l'inflation; 3) la création monétaire alimente une bulle qui provoque un {\it krach} financier. Ce trilemme met en valeur les canaux de transmission des politiques monétaires aux échanges réels. Il donne une fondation rigoureuse à la distinction entre déflation fishérienne par la dette et trappe à liquidité keynésienne.

International audience; We investigate the role of money in explaining the long run inflation in 12 CEE countries, using monthly data for the period 2004-2013. We use a panel cointegration approach and recently developed empirical techniques as the panel fully modified and the panel dynamic regression procedures. Beside the role of interest rate and economic growth rate in explaining inflation, our cointegration equation explores the role of broad money (M2) growth. We also look to the M2 components, namely M1 and the difference between M2 and M1. We find no cointegration relationship either for the broad money or for the narrow money. However, money created by the banking sector explains the inflation in CEE countries in the long run. This last finding characterizes the entire panel, the panel of the seven CEE countries candidates to the Euro area, but not the panel of Euro area members. The findings are robust regarding the consideration of the income velocity’s impact on the money in circulation.

Contribution annexée au rapport MAGNEN Jean-Philippe et FOUREL Christophe, D’autres monnaies pour une nouvelle prospérité [Rapport], Paris, Ministère du logement, de l’égalité des territoires et de la ruralité et Secrétariat d’Etat chargé du commerce, de l’artisanat, de la consommation et de l’économie sociale et solidaire, 2015, 76, 180, 46 p.; Ce texte vise à discuter la proposition de Michel Aglietta de fixation d’une valeur sociale au carbone évité (VSC) et à proposer une connexion de ce principe à un dispositif de monnaie locale intégrant la possibilité de financement des investissements écologiques. La proposition de Michel Aglietta est double : elle concerne d’une part un dispositif de fixation d’une valeur sociale au carbone évité en vue de stimuler les investissements bas-carbone, et d’autre part la promotion d’une économie circulaire par les monnaies locales. Je commence par commenter les deux propositions (1) puis je propose un prolongement afin d’intégrer financement et investissement dans les systèmes de monnaies locales afin qu’elles contribuent à la transition écologique des territoires (2).Dans ce troisième temps, la proposition qui est faite porte sur une organisation monétaire décentralisée et territorialisée apte à soutenir la transition écologique de l’économie et dans un rapport de subsidiarité avec l’organisation monétaire à l’échelle nationale. Elle est présentée selon trois étapes ou étages successifs, chaque étage supposant que le précédent a été construit. Le premier étage de la proposition consiste à renforcer l’existant des monnaies locales pour lui intégrer le principe du financement de l’investissement ; il ne nécessite pas des politiques publiques de transition mais suppose néanmoins une implication des collectivités. Le second étage introduit les politiques publiques de transition, qui passent alors par la conversion de fonds publics (fournis par les collectivités locales et territoriales concernées et par l’Etat) à des Fonds d’investissement territoriaux pour la transition écologique, FITTE) en monnaie locale sous forme de subventions ou de compléments de crédits à taux zéro pour investissement écologique, pour les entreprises et les ménages. Le troisième étage de la proposition intègre l’existence d’un plan européen ou international visant à valoriser le carbone évité, tel que la proposition Aglietta de VSC (valeur sociale du carbone évité). Il s’agit de connecter les fonds d’investissement territoriaux (FITTE) aux financements carbones développés dans le cadre de tels plans carbone. Il s’agit donc de convertir à l’échelle des territoires pertinents (par exemple, la région) une partie les fonds dégagés pour les investissements bas-carbone, et de les convertir en monnaies locales afin d’avoir une action appropriée à cette échelle.

This article analyses the predictive power of household money holdings with regard to prices or current aggregates (consumption and disposable incomes) over the short term (i.e. over one quarter), as compared with that of other explanatory variables, namely unemployment and total monetary aggregates. Regardless of the approach used, in the short term, household holdings exhibit a comparative advantage over unemployment and total monetary aggregates. The gain in terms of RMSE compared to a simple autoregressive equation is often at least 10%. This is consistent with the quantity theory of money, which holds that there should be a fairly direct link between money and consumption with a limited lag. In the longer run (12 quarters), unemployment exhibits better forecasting properties than household money holdings, which is consistent with the findings of Stock & Watson (1999).

International audience; Over the past two centuries, the connection David Ricardo made between money and foreign trade was widely commented on the basis of the 1809-1811 writings, notably the High Price of Bullion, Proof of the Depreciation of Bank Notes, of the 1816 Proposals for an Economical and Secure Currency, proposals taken again in the chapter twenty seven “On Currency and Banks” of the 1817 Principles of Political economy an Taxation, and of the 1823 Plan for a National Bank. On the other hand, the chapter seven “On Foreign Trade” of the 1817 Principles was mostly ignored with the exception of J.W. Angell (1926), F.W. Taussig (1927), K. Kojima (1951), M. Blaug (1976), J. de Boyer (1992) et G. Faccarello (2013) who did pay attention to it. Yet, according to Ricardo, the concept of comparative advantage cannot be understood without studying the international distribution of precious metals, and the determination of the natural prices of wine and cloth. In other words, the determination of relative prices includes monetary mechanisms. However the chapter seven of the Principles did not simply resume the 1809-1811 Ricardo’s monetary ideas. Here, Ricardo used arguments he had criticized seven years before. Furthermore, he reconsidered the link between value of money and exchange rate.The aim of this paper is to present and compare Ricardo’s monetary and foreign exchange analysis in the writings of 1809-1811 on one side, and in the chapter seven of his 1817 book on the other side. By means of a numerical example, the second section recalls the main features of the 1809-1811 analysis. According to Ricardo, the value of money in two trading countries must be equal for the foreign exchange equilibrium to be reached. Several notions such as the price specie flow mechanism, the quantity theory and the criticism of Thornton’s gold point mechanism are emphasized in this section. The third section presents the theory of the comparative advantage developed in chapter seven of the Principles; more than half of this text is consecrated to monetary components. Emphasis is placed on the foreign exchange market, the price specie flow between countries, and also the dynamics of money prices and wages that led to international specialization. The fourth section studies first the disconnection established by Ricardo in chapter seven of the Principles between the values of currencies and exchange rates, and second then his comments relative to the bullionist controversy; these comments close the chapter. The fifth section provides some precisions on (1) the "magic numbers" – i.e. 80, 90, 120, 100 -, (2) on the assumptions made to obtain the money prices - i.e. £45, £50, £50, £45 -, so that the terms of trade/exchange are not indeterminate contrary to an opinion inherited from John Stuart Mill, (3) finally on the consequences of an “improvement in making” English wine.Our research provides the following conclusions. First, Ricardo’s statement of the comparative advantage theory involves the monetary theory, specifically it presupposes the validity of the quantity theory. The specie inflow (outflow) in one country drops (increases) the value of money in this country. Secondly, according to the comparative advantage theory, “England would give the produce of the labour of 100 (English) men, for the produce of the labour of 80 (Portuguese)” (Ricardo, 1817, p; 135). It entails that the money price of the produce of 80 Portuguese men is equal to the money price of the produce of 100 English. It means that the money price of the produce of a given quantity of labour is 25% higher in Portugal than in England; i.e. that the value of a given quantity of money is 20% lower in Portugal than in England. Third, the specie flow between countries is not described with Hume’s price specie flow mechanism, but with Thornton’s gold points mechanism. Fourth, fixed exchange rate under gold standard does not involve gold has the same value in various countries. The symmetrical changes, in two countries, in the quantities of money, that lead to symmetrical changes in the values of money, do not modify the market prices of gold in any of these countries. To conclude, the seventh chapter of the Principles does not support Ricardo’s monetary view at the time of the Bullion Committee.

Say has shown that there is no amount of capital which may not be employed in a country. Such a proposal does not involve the absence of unemployment and crisis. The markets may be glutted. In his first writings, Say advanced that whenever there is a superabundance of several sorts of merchandise, it is because other articles are not produced. People have bought less, because they have made less profit. Disequilibrium in some markets may limit the global demand for goods. Later, he will explain the commercial crises by the abuses of the banks of circulation who, to discount the bills of their customers, issue excessive quantities of notes. The value of the money decreased; the individuals who held notes asked for the payment in species and banks noticing the decrease of their reserves restricted their credits so provoking a crisis., Say a soutenu qu'il n'y a pas de capital, quelque considérable qu'il soit, qui ne puisse être employé de façon profitable. Une telle proposition n'implique pas l'absence de chômage et de crise. Les marchés peuvent être encombrés. Dans ses premiers écrits, Say expliquait que si certaines marchandises ne peuvent pas se vendre, c'est parce que d'autres manquent. Quand on a moins gagné, on peut moins acheter et un déséquilibre sectoriel peut se diffuser dans l'ensemble de l'économie. Plus tard, il expliquera les crises commerciales par les abus des banques de circulation qui, pour escompter les effets de commerce de leurs clients, émettent des quantités excessives de billets. La valeur de la monnaie diminue ; les individus qui détiennent des billets demandent leur paiement en espèces ; les banques constatant la diminution de leurs réserves restreignent leurs crédits provoquant ainsi une crise.

Book review of a selection of Jean-Baptiste Say's principal writings on money and banking, Revue de l'ouvrage publié par Gilles Jacoud

FNEGE 3, HCERES A, ABS 2; International audience; We investigate the synchronization and nonlinear adjustment dynamics of short-term interest rates for France, the UK and the US using the bi-directional feedback measures proposed by Geweke (1982) and appropriate smooth transition error-correction models (STECM). We find evidence to support the increasing synchronization of these rates over the period 2005–2009 as well as of their lead–lag causal interactions. Moreover, short-term interest rates converge towards a common long-run equilibrium in a nonlinear manner and their time dynamics exhibit regime-switching behavior. As far as the underlying types of monetary policies conducted by the world’s leading central banks are concerned, our empirical evidence thus reveals strong interdependence, but only some degree of synchronization.

When French economists read The Purchasing Power of Money, they were primarily interested in the equation of exchange and the reformulation that Fisher proposed regarding the quantity theory of money. This reading led them to ponder the meaning that should be given to this theory and to study its empirical significance. Some of them, namely Rueff and Divisia, went further still and considered Fisher's work as a starting point for their own analyses, which were related in particular to the monetary index, the integration of money into general equilibrium theory and the analysis of monetary phenomena in an open economy., Quand les économistes français lurent the Purchasing Power of the Money, ils s'intéressèrent d'abord à l'équation des échanges et à la reformulation que Fisher proposait de la théorie quantitative de la monnaie. Cette lecture les conduisit à s'interroger sur le sens qu'il convenait de donner à cette théorie et à étudier sa portée empirique. Certains d'entre eux, notamment Rueff et Divisia, allèrent plus loin et considérèrent l'œuvre de Fisher comme un point de départ pour leurs propres analyses qui portèrent notamment sur l'indice monétaire, sur l'intégration de la monnaie dans la théorie de l'équilibre général et sur l'analyse des phénomènes monétaires en économie ouverte.

" In 1911, Fisher published The Purchasing Power of Money. In chapter 13 of the first edition and in an appendix in the second section of 1913, he introduced a rule to maintain the stability of the level of prices, known as the "compensated dollar." According to this rule, the legal definition of money is changed. In other words, the weight in gold of the dollar is modified once a month in order to impede the frequency of price changes on a basket of goods. According to Fisher, this plan would offer stability for the purchasing power of money. He sought to find an alternative system to the fixed price of gold under the Gold Standard. He wanted to introduce a dollar fixed in terms of its purchasing power, but variable in terms of its metallic weight. In this paper, we will focus on Fisher's analysis of the stability of money value and his position in the debate on the compensated dollar from 1909 to 1922. We will study the anticipations of Fisher's compensated dollar, the critical reception of Fisher's project and the evolutions it gave rise to, the gold exchange standard and the algebraic evidence. We also examine the debate's connections to the question of whether or not the compensated dollar plan is compatible with the quantity theory of money. We end with the analysis of the gold price elasticity of the net supply of gold, with an explanation of the relationship between the Yellowbacks and the varying price of the gold reserve."

The profound ongoing crisis has provided an opportunity for a reemergence of the arguments of John Maynard Keynes. “Keynesian” interpretations of the current crisis are numerous. Most of them only formulate what are bland “reformist” visions, aimed at the introduction of minimal alterations to the functioning of the capitalist system in order to make it survive. The article first analyzes the links between Keynes and the economic mainstream of his time ; it then examines the theoretical model of crisis which he has transmitted. In conclusion, it looks at the anti-crisis policies being implemented today, asking the question whether they are or are not “Keynesian”.

International audience; In 1911, Fisher published The Purchasing Power of Money. In chapter 13 of the first edition and in an appendix in the second section of 1913, he introduced a rule to maintain the stability of the level of prices, known as the "compensated dollar." According to this rule, the legal definition of money is changed. In other words, the weight in gold of the dollar is modified once a month in order to impede the frequency of price changes on a basket of goods. According to Fisher, this plan would offer stability for the purchasing power of money. He sought to find an alternative system to the fixed price of gold under the Gold Standard. He wanted to introduce a dollar fixed in terms of its purchasing power, but variable in terms of its metallic weight. In this paper, we will focus on Fisher's analysis of the stability of money value and his position in the debate on the compensated dollar from 1909 to 1922. We will study the anticipations of Fisher's compensated dollar, the critical reception of Fisher's project and the evolutions it gave rise to, the gold exchange standard and the algebraic evidence. We also examine the debate's connections to the question of whether or not the compensated dollar plan is compatible with the quantity theory of money. We end with the analysis of the gold price elasticity of the net supply of gold, with an explanation of the relationship between the Yellowbacks and the varying price of the gold reserve.

International audience; We describe a multiproduct barter trading experiment in which students exchange real goods in an open market based on their own personal preference. The experiment is designed for simulating a pure exchange market in order to demonstrate the role of money and its functions in real economies by showing the limitations and inefficiencies of the traditional barter economy. In addition, the simulation is very effective in highlighting some of the key features that an object that serves as money needs to possess in order to function as an efficient medium of exchange, unit of account, and store of value.

International audience; We define continuous-time dynamics for exchange economies with fiat money. Traders have locally rational expectations, face a cash-in-advance constraint, and continuously adjust their short-run dominant strategy in a monetary strategic market game involving a double-auction with limit-price orders. Money has a positive value expect on optimal rest-points where it becomes a "veil " and trade vanishes. Typically, there is a piecewise globally unique trade-and-price curve both in real and in nominal variables. Money is not neutral, either in the short-run or long-run and a localized version of the quantity theory of money holds in the short-run. An optimal money growth rate is derived, which enables monetary trade curves to converge towards Pareto optimal rest-points. Below this growth rate, the economy enters a (sub-optimal) liquidity trap where monetary policy is ineffective ; above this threshold inflation rises. Finally, market liquidity, measured through the speed of real trades, can be linked to gains-to-trade, households' expectations, and the quantity of circulating money.; Nous définissons une dynamique en temps continu pour les économies d'échange avec monnaie fiat. Les agents ont des anticipations localement rationnelles, font face à une contrainte de liquidité, et ajustent leur stratégie dominante en temps continu dans un jeu stratégique de marché monétaire construit sur une enchère double avec ordres de prix-limite. La monnaie a une valeur positive excepté sur les points-limites Pareto-optimaux de la dynamique, où elle devient un "voile" tandis que les échanges s'évanouissent. Génériquement, cette dynamique admet une courbe d'échanges unique par morceaux, aussi bien en termes réels qu'en termes nominaux. La monnaie n'est neutre ni à long-terme, ni à court-terme. Une version locale de la théorie quantitative de la monnaie peut être obtenue à court terme. Un taux optimal de croissance monétaire émerge ce qui permet à la courbe des échanges monétaires de converger vers un optimum Parétien. En dessous de ce taux de croissance, l'économie tombe dans une trappe à liquidité inefficiente, où la politique monétaire est inefficace. Au-dessus de ce taux, l'inflation augmente sans effet réel. Enfin, la liquidité de marché, mesurée par la vitesse des échanges réels, peut être reliée aux gains à l'échange, aux anticipations des investisseurs et à la quantité de monnaie en circulation.

The distribution of money across households is much more similar to the distribution of financial assets than to that of consumption levels, even controlling for life-cycle effects. This is a puzzle for theories which directly link money demand to consumption, such as cash-in-advance (CIA), money-in-the-utility function (MIUF) or shopping-time models. This paper shows that the joint distribution of money and nancial assets can be explained by an incomplete-market model when frictions are introduced into financial markets. Money demand is modeled as a portfolio choice with a fixed transaction cost in financial markets., Dans les données, les inégalités d'encaisses monétaires entre les ménages sont beaucoup plus proches des inégalités de richesse que des inégalités de consommation. Ce fait contredit les théories traditionnelles de la demande de monnaie qui font l'hypothèse que les ménages détiennent de la monnaie pour consommer, comme les théories qui introduisent la monnaie dans la fonction d'utilité ou des contraintes d'encaisses préalables, entre autres. Ces théories impliquent que les inégalités monétaires devraient être très proches des inégalités de consommation. On montre dans cet article que les inégalités monétaires, financières et de consommation peuvent être expliquées lorsque des frictions, comme des contraintes de participation, sont introduites sur les marchés financiers et non pas sur les marchés des biens. Un modèle à agents hétérogènes est présenté avec un choix d'actifs non trivial entre monnaie et actifs financiers en présence d'un coût de transaction. La quantification de ce modèle reproduit des distributions réalistes. Les conséquences théoriques sont discutées.