Financial Equilibrium in the Presence of Technological Change

21 Pages Posted: 30 May 2017

See all articles by Krzysztof Waśniewski

Krzysztof Waśniewski

Andrzej Frycz Modrzewski Krakow University

Date Written: May 27, 2017

Abstract

This article explores the issue of observable instability in financial markets interpreted as a long-term process of adaptation to demand for money, which, in turn, is based on the expected depreciation of fixed assets. Exploration is based on verifying empirically the hypothesis that the velocity of money is significantly, negatively correlated with the pace of technological change. The purpose of exploration is to assess the well-founded of policies, which use financial and monetary tools, rather than the straightforwardly fiscal ones, to stimulate technological change. Empirical research suggests that aggregate depreciation of fixed assets is a significant factor inducing slower a circulation of money.

Keywords: Money, Financial Markets, Technological Change

JEL Classification: E1, E3

Suggested Citation

Waśniewski, Krzysztof, Financial Equilibrium in the Presence of Technological Change (May 27, 2017). Available at SSRN: https://ssrn.com/abstract=2975683 or http://dx.doi.org/10.2139/ssrn.2975683

Krzysztof Waśniewski (Contact Author)

Andrzej Frycz Modrzewski Krakow University ( email )

ul. Herlinga Grudzińskiego 1
Kraków
Poland

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