Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257830 
Year of Publication: 
2022
Citation: 
[Journal:] International Journal of Financial Studies [ISSN:] 2227-7072 [Volume:] 10 [Issue:] 1 [Article No.:] 12 [Publisher:] MDPI [Place:] Basel [Year:] 2022 [Pages:] 1-18
Publisher: 
MDPI, Basel
Abstract: 
This paper aims to integrate the money market into the structure of the economy. The microfoundation is the starting point to define the money market and the general equilibrium mechanism of the economy. On this basis, this research seeks a linking mechanism of the money market with economic activity in the general equilibrium framework. The relationships between money supply and national outcome, inflation, and price level are studied in three cases: full-employment equilibrium economy, steady-state equilibrium economy, and sticky-price equilibrium economy. The research result explains the interrelation and transmission mechanism between the money market and the general equilibrium of the economy. The paper provides the theoretical foundation for further research on the money market and monetary policies towards economic growth and macroeconomic stability.
Subjects: 
economic growth
general equilibrium
inflation
microfoundations
money market
JEL: 
D01
D50
E40
E52
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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