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Abstract:
Some current research conclude that the numbers in financial statement are not relevant for three basic reasons. The numbers: (1) are not isomorphic with capital market values, (2) do not have a future orientation, and (3) are un-interpretable since they are based upon five different measurement attributes. The lack of isomorphism argument is invalid since actual current performance is not identical with the capital market expectations of future performance. The lack of a future orientation argument is invalid since financial statements capture what has happened and not what is expected to happen. Since a single measurement attribute is required to produce meaningful measures, the un-interpretability argument holds. A unique measurement attribute is identified in this paper to address this problem.

Capital market values, Basle Capital Accord, value of marketable securities, technical insolvency effect, high-technology and dot-com firms, security returns, short-term earnings management, 'new economy', Total Value Creation, liquidity of insurance industry, causative choice, speculative choice

Abstract:
Debates on inflation have subsided, but the issue is not dead. Debates on this issue are as perennial as the grass; as soon as there are continuous and significant increases in the level of prices, the debates will be resumed with much vigor. Therefore, the issue has to be addressed in spite of the cessation of debate at this time. Many arguments have been presented that under conditions of changes in the general level of prices financial statements are irrelevant and uninterpretable. According to the argument for change, a real (constant) money measure of performance indicates that management is failing to maintain its physical stock of capital. The nominal money measure is considered to be the problem, since it cannot provide a constant measure of the physical quantities. Attempts have been made to alter financial accounting information in order to measure the impact of inflation on a business enterprise to assist the firm in making its investment decisions and the firm's shareholders in making their investment and consumption decisions. However, in great part these attempts have not withstood the test of relevance and interpretability. Given the functioning of a surplus-oriented money economy, the argument in support of accounting for changes in the general level of prices is examined in light of the following questions: What is it that is entrusted to management? Is it a physical stock or a financial stock of capital? Does a firm seek to accumulate a physical stock or a nominal money stock? Are the suppliers of money-capital concerned with physical flow prediction or with nominal money flow prediction? This paper simply sets out to examine the issues and reveal the fallacy of the argument in support of alteration of financial accounting information in the absence of monetary dislocation.

relevance of inflation accounting information, constant dollar accounting, current cost accounting, maintenance of physical capacity

Abstract:
This paper addresses a very profound question concerning financial accounting. Is financial accounting measurement, as represented by diverse valuation rules, hodgepodge or is it logically developed? Salvary [1985. p. 28. Chap. IV] advances and provides a theoretical development of the concept of recoverable cost as the measurement property observed in (underlying) financial accounting measurement. Salvary [1989, pp. 50-51] maintains that recoverable cost is the center of economic gravity and demonstrates that this valuation is derivable from axioms advanced.

This paper provides a rigorous proof that recoverable cost is the observed measurement property underlying financial accounting measurement. This analysis draws upon: (a) the concept of recovery underlying the investment decision and (b) the distinction between decision theory and measurement theory. It establishes recoverable cost as the measurement property in financial accounting and leads to the conclusion that financial accounting measurement is logically developed.

measurement rules, capital budgeting, realizable value, lower of cost and market, capitalization, depreciation, decision theory, market simulation, asset specificity

Abstract:
Several tests have been conducted to determine which valuation model best fits stock price data. Given very little success, those studies suggest the need for a clear understanding of the market process of stock price determination. This paper advances the concepts of product costing and product pricing, which pertain to financial accounting valuation and the stock market price determination, respectively. This research effort presents a workable hypothesis of stock price determination.

stock valuation models, fundamental value, committed finance, financial product costing, financial product pricing. 'investment base', risk/return preferences, sequential expectations adjustment model, heterogeneous expectations, economic space

Abstract:
Over time, a changing environment has produced changes in the types of accounting information and in the dissemination of such information (financial reporting). Certain changes in the environment do impel changes in accounting. This paper examines various theoretical issues in accounting in a historical setting and provides some insight on the manner in which the accounting profession has responded to problems.

token system of accounting, evolution of the manorial system, earliest form of manorial revenue, the manorial establishment, household's standard of living, the physical quantity/financial flow relationship, the origin of the firm, organizational/institutional changes, Business Reporting

Abstract:
In its Conceptual Framework (CF), the Financial Accounting Standards Board (FASB) has not identified the observable phenomena and was not able to identify a single measurement property in financial accounting. While identifying aspects of the observable phenomena in financial accounting, the FASB has indicated that there are five measurement attributes which are used in financial accounting and the result is a mixed-attributes model. Lacking a critical underlying theory, the FASB's Conceptual Framework is feeble at best in providing guidance for accounting measurement. Devoid of the critical theory, the FASB focuses on prediction rather than explanation and, thereby, has adopted an 'information perspective' as opposed to a 'measurement perspective' for financial accounting standards. This condition has induced a very serious concern for legislative action on the part of the US Congress. In this paper, investments constitute the observable phenomena in financial accounting and recoverable cost, which is grounded in measurement and not prediction, is the measurement property. This measurement property, which is linked to investments and explicated by the capital budgeting model, provides the logical explanation of the apparent diverse rules in financial accounting and establishes a single attribute model.

Conceptual framework, accounting measurement, stock market valuation, transaction costs, organizational activity, measurement attribute, present value, realizable value, lower of cost and market value, organizational efficiency, bank-centric financial system, expectations and uncertainty

Abstract:
Given the call for the development of an accounting conceptual framework, this paper rejects the need for such an undertaking. Using a historical methodology this paper traces the existence of an accounting conceptual framework that painstakingly has been established over the centuries. The paper maintains that the existing need is to fine tune the exisiting framework.

A Classical Model of Accounting, measurement and communication processes, stock-jobbing of companies' shares, 'Bubble Act', environmental stimulus, feudal system, venture accounting, 'economic capital maintenance', creditors' protection, Joint Stock Companies, conservatism, corporate capitalism

Abstract:
The Quantity Theory of Money is implicitly embedded in the arguments for price level adjusted financial statements - inflation accounting. Historically, the instability of commodity prices, which is due to changes in relative prices, is considered by one school of economic thought (monetarism) as a reflection of the instability of the value of nominal money. Monetarists maintain that it is the level of the money supply which accounts for the instability of commodity prices. Hence, (1) all changes in the level of the money supply is deemed responsible for changes in the general level of prices, and (2) with each increase in the general level of prices, paper money is said to lose value. In a money economy, nominal money prices reflect the underlying exchange ratios of the various commodities that are produced and exchanged for nominal money. In the absence of monetary dislocation (monetary revaluation or devaluation), any change in the nominal price of a commodity reflects a change in its purchasing power (a change in its exchange ratio vis-a-vis other commodities). Since the physical form of a commodity is relatively constant while the price varies, the simultaneity of these two conditions produces a sensory illusion that leads the monetarists to argue that the measuring device (money) is defective. This paper attempts to demonstrate (in the absence of monetary dislocation): (1) the stability of paper money, which makes it a valid measuring device; and (2) that the quantity theory of money, which is the basis of constant dollar accounting, is a flawed theory.

Price level changes, level of money supply, instability of commodity prices, monetarism, price level adjusted financial statements, general purchasing power

Abstract:
Accounting at various times has been referred to as a communication process, a language, and a conveyor of information. Given this condition, an analysis of accounting in terms of the theories relating to those references would enable an understanding of: (1) how well the parts of accounting conform with language theory; (2) how communication theory can aid in the clarification and improvement of the accounting communication process; and (3) how relevant is information theory for the refinement of accounting information. This study is a partial analysis which presents some implications of those theories for accounting.

Financial reporting, financial statements and notes, Neutrality, structure assignment algorithm, predictability, accounting information as message

Abstract:
This study presents a very realistic objective of the firm, which is consistent with organizational behavior. It is being proposed that: The firm sets as its objective the control of the optimum amount of financial capital at the minimum cost to the firm. As evidenced by the large portfolios of marketable equity securities held by non-financial firms, the firm hoards financial capital in order to ensure future availability. There is a holding or storage cost; that is, in pursuing this objective, the firm incurs (pays) a premium to ensure control over an attained level of financial capital. This study maintains that this cost is tantamount to a premium as in the case of an insurance policy. Thus, corporate earnings retention is a case of optimization under uncertainty and dividend policy is viewed as an instrument of risk management. This objective, which addresses the underinvestment problem, fills the gap on what the firm should maximize and provides an alternative to the debatable maximization of shareholders' wealth.

dividend policy, volatility of cash flows, maximization of shareholders' wealth, low-liquidity and high-liquidity firms, sub-marginal investments, marginal efficiency of capital, the level of liquid assets

Abstract:
This paper attempts to reinforce by means of social theory the procedure and property (attribute) of financial accounting measurement advanced by Salvary [1985,1989,1992]. The procedure entails estimating the amount of cash flows derivable from existing investment projects; and the measurement property (attribute) is identified as recoverable cost. The cash-in and cash-out principle establishes financial capital maintenance as the appropriate capital maintenance concept to be followed in the measurement of periodic income. An analogy between a bank savings account and an equity security is used to identify the measurement property (attribute) and validate the additivity of financial accounting numbers. Problems with the monetarist model were used to demonstrate the appropriateness (stability) of the measurement scale (monetary unit). The logical analysis developed in this paper makes a compelling case for a reconsideration of Statement of Financial Accounting Concept No. 5 by the FASB.

capital maintenance, 'cash-in and cash-out' principle, organizing of economic activities, cost efficient means of transacting, uncertain purchasing power, price mechanism, intertemporal transfer of risks, Replacement of non-monetary assets, intersavers' transfer of risks, Hicksian consumption model

Abstract:
This paper addresses a theme in an historical setting that financial accounting measurement contributes to: (1) retardation of national economic growth by the failure of financial accounting to provide for the replacement of capital goods in its measurement process; and (2) the business cycle owing to the illusory profits reported in financial statements. The author explores the issues and concludes that the arguments against accounting are based upon misunderstandings.

national or social accounting, replacement cost accounting, retardation of economic growth, Harrod's 'instability principle', maintenance of physical capacity, illusory profits

Abstract:
This paper addresses two problematic issues arising from the importation of terms into financial accounting: (1) the nature of economic reality; and (2) the role of assumptions. These two issues have stirred a lot of controversy relating to financial accounting measurements and affect attestation reports. This paper attempts to provide conceptual clarity on these two issues.

Economic reality, audit opinion, Savings and Loan Associations, aggregative analysis, planning data, simplifying assumptions, going concern, liquidating concern, realization

Abstract:
Many researchers have questioned the view of accounting as a science. Some maintain that it is a service activity rather than a science, yet others entertain the view that it is an art or merely a technology. While it is true that accounting provides a service and is a technology (a methodology for recording and reporting), that fact does not prevent accounting from being a science. Based upon the structure and knowledge base of the discipline, this paper presents the case for accounting as an empirical science.

national accounting and organizational accounting, risk-sharing arrangements, management of time and other resources, monetization of the economy, command over goods and services, extrinsic value and intrinsic value, commodity money and paper/nominal money, money in relation to credit

Abstract:
It is recognized that the usefulness of accounting information is contingent upon its (1) neutrality, (2) relevancy, and (3) reliability. Given that all socio-economic systems are comprised of participants and institutions, it would seem that the attainment of those three qualities is conditioned by a proper determination of the institutional arrangement. The relationship of the members of society to existing institutions emerges as the pivotal consideration. Institutions are the creations of society, therefore, it seems fair to state that they reflect the evolutionary process. The institutional arrangement has evolved over time, and an understanding of the evolution is fundamental to achieving neutrality, relevancy, and reliability of accounting information. The roles of the many and varied institutions as intended upon their creation by society can provide the basis for establishing disclosure requirements. Such requirements entail a proper balancing of many factors as constrained by costs versus benefits in the information disseminating process. In this regard, historical research can provide a tremendous insight into institutions and institutional roles as they have evolved. Such insight can facilitate the complex balancing problem of financial reporting.

The information disseminating process, institutional arrangements and their historical evolution, external financial reporting, adaptability, tractability, mobility, and shiftability, mercantilist philosophy, feudalism, manorial system, individual capitalism, joint stock company, industrialization

Abstract:
The search for scientific truth is never ending. Society's knowledge base at any time is tentative and is advanced, modified, or remains unchanged with the findings of scientific research. In society, the daily lives of human beings are guided by policies established based upon knowledge acquired over time. Great trust is placed in the hands of the policy makers who accept the research findings which are considered scientific truths. Historically, the problem facing society is that ideology dominates that which is epistemologically relevant. Many research findings are deemed false not on the basis of the incorrectness of the findings but on ideological grounds. Consensual correctness is considered the basis for research acceptance rather than representational correctness. The history of astronomy and economics reveals the force of ideology in the cases of Copernicus, Galileo, Samuel Bailey and P. W. S. Andrews. The issue in philosophy is much more difficult, as exemplified by Hobbes' argument against Aristotle's philosophy. However, Hobbes' position is reinforced by the formidable work of Mandeville, whose work is the foundation for the ever-popular work of Adam Smith. This paper, in a historical setting, explores issues in several disciplines whereby human beings are exposed unnecessarily to the vagaries of those researchers who permit ideology to dominate epistemology. A corrective factor - the fairness concept - is recommended to modify/ameliorate the impact of ideology.

Ideological Dominance and Epistemological Relevance, Modelling and Theory Formulation, Instrumentalism, Free Market and Regulated Market, Theory of Imperfect Competition, Fairness, Consensual Correctness, Representational Correctness

Abstract:
Historically, generalization about economic fluctuations in an economic system over extended periods of time has proved to be difficult. Yet, it has been even more difficult to generalize across economic systems. In a historical setting, there are many theories offered to explain the creation of business cycles. In this study it is argued that the business cycle is not caused by a single factor but by a multiplicity of factors, therefore, such competing theories constitute special cases of the business cycle. This study maintains that there are families of business cycles, with each family representing a related set of economic systems. Given a family approach to economic systems, then it is conceivable that a general theory can be developed for each family of economic systems by grouping factors identifiable with particular sets of economic systems. Data from the United Nations for 137 countries were used to establish a classification scheme for families of economic systems. US time series data were examined to assess the plausibility of the general theory for one family of economic systems as advanced in this study.

cycle creation theories, families of cycles, money shocks, investment cycle, credit cycle, monetary dislocation, systems philosophies

Abstract:
Regional capital expenditures, which reflect regional flows of financial capital, are a function of the aggregate of individual firms' behavior. Hence, the allocational efficiency of the regional flows of financial capital may be affected by the manner - internal versus external - in which financial capital becomes available to manufacturing firms. Allocational inefficiency could obtain since corporate retained earnings - funds that are internally available to large firms - are only minimally subject to the market rationing process. Even though the capital market is cleared, it may do so without providing for the efficient allocation of financial capital. The existence of differential rates in regional financial markets may reflect the costs associated with the use of funds in a truncated or discontinuous national capital market. Accordingly, equilibrium experienced in the capital market may exist under non-Paretian conditions.

This paper attempts to determine whether the allocation of regional financial capital flows is efficient as suggested by the neoclassical model (NCM). Specifically, the study attempts to ascertain whether the corporate retained earnings model (CREM) is a good predictor of the regional flow of financial capital. In line with the NCM, it is hypothesized that regions with high growth rates of annual manufacturing value added (Mgs) experience low annual capital investment-output ratios (ACIs) and low variability in financial capital flows (low variability of annual capital investment-output ratios - VACIs). As per the CREM, it is postulated that regions (states) with high growth rates of annual manufacturing capital expenditures (Cgs) experience high ACIs and high VACIs. Surrogate measures of financial capital flows and the volatility of such flows were used. The test results, which may not be generalizable beyond the study period, suggest that the CREM may be a better predictor of the regional flow of financial capital than the NCM and that the financial capital rationing process for regional manufacturing investments may be inefficient. The finding, that corporate earnings retention influences the flow of financial capital, does suggest that the NCM does not always hold. This study should enhance the understanding of regional flows of financial capital and the state-region and industry region models used in the study refine and extend the scope of regional economic analysis.

The spatio-temporal flows of financial capital, industry regions, dominant industry, internally generated funds, universal investment opportunity set, firm's investment opportunity set, growth rates of annual manufacturing capital expenditures, growth rates of annual manufacturing value added

Abstract:
Perceptions of money do influence monetary policy, and monetary policy does have an impact on the functioning of the economy. For instance, a high interest rate policy usually entails high levels of bankruptcies and unemployment. Also, given a loss of confidence in the issuing authority (monetary dislocation), paper money can and does fail in all its functions as a medium of exchange, a unit of account, and a store of nominal value. In a money economy in which nominal money is the medium of exchange, nominal money prices reflect the underlying exchange ratios of the various commodities that are produced and exchanged for nominal money. In the absence of monetary dislocation (monetary revaluation or devaluation), any change in the nominal price of a commodity reflects a change in its purchasing power (a change in its exchange ratio vis-a-vis other commodities). Monetary policy prescriptions, which ignore this reality, result in significant displacement costs to members of society. A 'pure science' approach to economic research engenders policy prescriptions based upon assumptions of the economic system which are not aligned with the empirical reality. Hence, to avoid severe social costs, the 'pure science' approach to economics needs to be modified to deal with social reality.

Monetary policy decisions, economic policy, federal funds target range, purchasing power uncertainty, interest rate targeting, reserves targeting, instruments for the prediction of observable phenomena

Abstract:
Co-operation among members of the world community is highly desirable, since it would be a step in the right direction to alleviate some of the world's problems. However, the current discussions on the harmonization of socio-economic systems and the globalization of trade goes beyond mere suggestions to the position that such a development is imminent and highly beneficial to the world community. For many countries being able to trade voluntarily with any country is highly desirable, but having to transform one's way of life to one single mode of operation poses far greater problems than those that currently are being experienced. This paper maintains that institutionalized macroeconomic planning, which can produce positive benefits to any and all societies, is the path that should be followed.

Institutionalized macroeconomic planning, developing countries, confrontational competition, social welfare maximization, 'governed market theory'

Abstract:
The view that prediction is the only important concern when policy is to be developed has led to the strict adherence to a money supply rule via the Quantity Theory of Money with its debilitating consequences. The monetarists place the emphasis on the level of the money supply in the determination of price level changes and monetary control is exercised. Along with this line of thinking, statistical elegance transcends empirical reality. Thus, the ensuing consequences of monetary control are not surprising. There are continuous increases in the general level of prices and increasing problems of unemployment, which fuel the flames of business downsizing.

In this paper, an alternative to the monetarist explanation of the determination of the price level is advanced. The alternative explanation does not rely on changes in the supply of money but on changes in the composition of aggregate demand and supply. Absent monetary dislocation or revaluation of the currency, change in the general price level is attributed to the net effect of the realignment of relative prices. It is argued that a rethinking of the situation would result in monetary policy that is compatible with the economic setting and not monetary control which crowds out fiscal policy.

Endogenous nature of money, general price level, money supply, quantity theory, price instability, consumer loans outstanding, Fisher effect, money supply rule

Abstract:
In the literature, nominal money has been decried as a reliable measure. However, before condemning money as a defective measure, it is necessary to examine in a historical context the nature and the role of money in a money economic system, and the changes over time in the types of money (commodity money versus paper money). Using historical evidence and logical analysis, this paper attempts to establish the validity of nominal money as a valid device for the measurement of organizational performance. This paper reveals that: (1) the deficiencies of commodity money (and the historical arguments associated with it) are attributed to paper (fiat) money; (2) in a historical setting, there are very restrictive conditions under which paper money would be a defective measuring device; and (3) under general economic conditions, paper money is a reliable measure.

organizing economic activities, commodity money, representative paper money, transaction cost reduction, extrinsic and intrinsic values, uncertain nominal value, non specified purchasing power, individual preference, stored entitlements

Abstract:
Monetarists maintain that changes in the price level are attributable to the level of the money supply. Hence, price stability has been the rationale for the money supply rule derived from the Quantity Theory of Money. Consequently, to curb inflation, the general price level index is the lever for periodic adjustments of the short-term interest rate. Nevertheless, monetary control is ineffective due the fact that: (1) with the collapse of the gold standard during the 1930s and the removal of the final link to a commodity - gold (an exogenous variable with a variable nominal value), fiat money (an endogenous variable with an invariable nominal value) emerged unchallenged; (2) the realignment of relative prices - the perennial cause of changes in the general level of prices - cannot be abated since it is the effective mechanism for the efficient functioning of the economic system; and (3) unrestrained consumer credit - driven by unbridled aggressive business policies and producing documented credit cycles with periods of credit expansion and credit saturation - has severely amplified the impact of price level changes. This paper examines the issue of price level changes within the context of money (types and functions), economic systems (barter, monetary, and credit), aggressive business practices, unrestrained consumer credit, and credit cycles.

fiscal policy, inflation, credit cycles, credit economy, monetarism, aggressive business practices, commodity money, exchange ratios, crisis of doubt, fiat money, interest rate policy, unrestrained consumer credit, purchasing power, realignment of relative prices

Abstract:
The role of accounting functionaries in antiquity is of interest from the standpoint of the source documents used, reports generated, duties performed, and the requisite knowledge to perform established duties. It appears that in some historical works, individuals involved in some manner with the accounting function, however slight, have been determined to be professional accountants. Since classifications have been made in some instances by mere association and not based upon adequate evidence, the possibility for misclassification does exist. This paper draws attention to this potential problem of misclassification in historical works.

medieval period, trained scribes, handbook on estate management, manorial documents, forms and records, auditing the accounts.

Abstract:
The business cycle spreads from one country to the next to the extent that there is international trade, international investment, and international financial linkages. Since the Latin American countries are closely linked to the US economy, there should be a close parallel between the performance of the US economy and the economies of Latin America. Under consideration is the extent to which these countries were vulnerable or somewhat less than expected vulnerable to the forces at work in the US economy. The period 1972-1989 is the historical time frame under investigation. Given a changing world economy by the end of the 1980s, generalizations resulting from this study are limited to the study period.

Economic Systems, Business Cycle Factors, A System-Dependence Model of Cyclic Behavior, Structural and Pholosophical Types of Economic Systems

Abstract:
Availability of financial capital and location decisions are variables that influence regional manufacturing output. This study maintains that a region's manufacturing growth depends upon the region's firm-type dominance. That is, the type of firms that dominate the region's manufacturing output can be classified as non-local (national or foreign - NF) vs. local and large vs. small. Accordingly, for policy analysis, regions can be classified by firm-type dominance. This distinction is important since, invariably, location decision options and availability of financial capital are more favourable for the larger NF firms than for local firms. In an attempt to assess the impact of firm-type dominance, this study draws upon the dominant industry model [Salvary 1987] which has established that, in any given region, there is a dominant industry (the driving force of the region) to which a region's manufacturing growth is linked. The information on the impact of firm-type dominance on a region's manufacturing output may enable policy-makers to design workable (or revise existing) manufacturing diversification policies.

state-regions and industry-regions, chemical industry region, regional policy analysis, manufacturing growth, firm-type dominance, availability of financial capital, dominant industry model, manufacturing firms' location decisions, regional economic development, foreign-owned manufacturing plants

Abstract:
Historically, informed of economic agents via price stability has been a rationale for the money supply rule derived from the Quantity Theory of Money. Since monetarists maintain that changes in the price level are attributable to the level of the money supply, the general price level index is used as the basis for the periodic adjustment of the short-term interest rate to curb inflation. In so doing, agents are informed of expected price level changes. From a relativist perspective, in the absence of monetary dislocation or revaluation, changes in the general price level are attributable to the net effect of the realignment of relative prices which are caused by factors other than the level of the money supply. Since the price level index is a mental construct, which is devised to capture the changing conditions in economic growth for the purpose of physical productivity analysis, it is doubtful that it can be an adequate guide for monetary policy. If changes in the general level of prices are not a function of changes in the supply of money but of changes in the composition of aggregate demand and supply, then the money supply rule for monetary policy would be ineffective at best and disruptive at worst. Apart from adverse financial impacts on business, the 'quantity theory' inflation-designed short-term interest rate policy has induced significant negative effects on the capital markets in 1987 and in 2006. There is a definite need to focus on other factors that are accountable for the changes in the level of prices.

price level index, monetary policy, productivity analysis, price signalling, endogeneity of money, the impact of short term interest rate policy, nominal interest rates, the velocity of money, repudiation of paper money, 'fully informed agents', business firms' credit extension poilicies

Abstract:
Slow growth of some manufacturing regions and growth variations among manufacturing regions are two issues that are quite perennial in regional economics. To observe and analyze slow regional manufacturing growth and regional manufacturing growth variation within and among US regions, a dominant industry and an industry region approach is used. This study provides a theoretical framework to explain disparities in manufacturing growth rates among US regions during the period 1960 - 1971.

the dominant industry, state regions, industry regions, growth in regional manufacturing value added, growth in regional manufacturing capital expenditures, leakage in manufacturing industry growth.

Abstract:
While economies in transition are not devoid of monetary policy, changes desired in the functioning of these economies may necessitate innovations to administer monetary policy consistent with newly established goals. Although some goals may essentially be the same (e.g., full employment or price stability), the instruments for achieving those goals may not be present. A variety of approaches to monetary policy are presented; however, while several operating models are discussed, it is made clear that the approach adopted, by an economy in transition, has to be consistent with the institutional structures in place. The recommended path for policymaking begins with an assessment of the institutional setting and the economic philosophy of the country in transition; this is followed by an information approach, which focuses on: objectives and goal variables, monetary policy models, the effect of changing conditions, the role of central banks, integration of monetary and fiscal policies, institutional design for monetary stability, alternative model variables, implications of monetarism, and a concluding caveat on monetary control.

A general framework on monetary policy, the quantity of money, interest rate policy, Latin American countries, Asian emerging market countries, maximum sustainable economic growth, the role of the central bank, exchange rate system, money stock, target variables, open market operations

Abstract:
There is general acceptance that information contained in security prices are relevant to different segments of the financial community. Given the most appropriate methodology, each segment attempts to extract the information relevant to its decision. This paper posits that the net present value (NPV) of a firm's equity security (share market price less book value of that share) contains information relating to the average planning horizon (APH) of the equity investors. The findings in this study suggests that the messages contained in the NPV may be potentially useful for corporate financial planning given general uncertainty and financial market conditions.

net present value, risk management, capital market, commodity market, market expectations, financial accounting information, financial and business risks, apparent homogeneous planning horizon, sequential expectations adjustment , 'dividend clientele'