New Releases by Jack Carr

Previous models of the demand for money are either inconsistent with contemporaneous adjustment of the price level to expected changes in the nominal money supply or imply implausible fluctuations in interest rates in response to unexpected changes in the nominal money supply. This paper proposes a shock-absorber model of money demand in which money supply shocks affect the synchronization of purchases and sales of assets and so engender a temporary desire to hold more or less money than would otherwise be the case. Expected changes in nominal money do not cause fluctuations in real money inventories. The model is simultaneously estimated for the United States, United Kingdom, Canada, France, Germany, Italy, Japan, and the Netherlands using the postwar quarterly data set and instruments used in the Mark III International Transmission Model. The shock-absorber variables significantly improve the estimated short-run money demand functions in every case.

Study commissioned by Canadian Arctic Gas Study Limited to estimate the medium term macroeconomic effects of the construction and operation in the early years of a natural gas pipeline from Alaska and the Mackenzie Delta. It was concluded the effects would be small compared to the economy as a whole.

Uses economics to shed light on issues of particular relevance to contemporary Canadian problems.