Eric Barthalon
- Published in print:
- 2014
- Published Online:
- November 2015
- ISBN:
- 9780231166287
- eISBN:
- 9780231538305
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231166287.003.0004
- Subject:
- Economics and Finance, Behavioural Economics
This chapter examines the microfoundations of Maurice Allais's theory of monetary dynamics, with particular emphasis on his hereditary, relativist, and logistic (HRL) formulation of the demand for ...
More
This chapter examines the microfoundations of Maurice Allais's theory of monetary dynamics, with particular emphasis on his hereditary, relativist, and logistic (HRL) formulation of the demand for money. According to the HRL formulation, the ratio of desired money-to-aggregate nominal spending is a logistic decreasing function of the present value of past growth rates in nominal spending. Allais assumed that the demand for money was a function of nominal growth “expectations” and that “expectations” were formed adaptively and could be represented by an exponential average of the sequence of historic rates of nominal growth. He observed that exponential averages were good at fitting empirical data on average over whole samples, but were struggling with the different phases of inflationary processes. Allais modeled this observed variability of the elasticity of “expectations” by formulating three psychological assumptions: the hereditary assumption, the relativist assumption, and the logistic assumption. The chapter discusses these three assumptions and the elasticities in the HRL formulation before concluding with an analysis of how the HRL formulation quantifies the perceived flow of calendar time.Less
This chapter examines the microfoundations of Maurice Allais's theory of monetary dynamics, with particular emphasis on his hereditary, relativist, and logistic (HRL) formulation of the demand for money. According to the HRL formulation, the ratio of desired money-to-aggregate nominal spending is a logistic decreasing function of the present value of past growth rates in nominal spending. Allais assumed that the demand for money was a function of nominal growth “expectations” and that “expectations” were formed adaptively and could be represented by an exponential average of the sequence of historic rates of nominal growth. He observed that exponential averages were good at fitting empirical data on average over whole samples, but were struggling with the different phases of inflationary processes. Allais modeled this observed variability of the elasticity of “expectations” by formulating three psychological assumptions: the hereditary assumption, the relativist assumption, and the logistic assumption. The chapter discusses these three assumptions and the elasticities in the HRL formulation before concluding with an analysis of how the HRL formulation quantifies the perceived flow of calendar time.
David Carr
- Published in print:
- 2014
- Published Online:
- August 2014
- ISBN:
- 9780199377657
- eISBN:
- 9780199377671
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199377657.003.0008
- Subject:
- Philosophy, Philosophy of Mind, General
This chapter returns to a more direct phenomenological approach and takes up important themes that figure in our experience of history. Space and time are treated not as abstract dimensions but as ...
More
This chapter returns to a more direct phenomenological approach and takes up important themes that figure in our experience of history. Space and time are treated not as abstract dimensions but as features of the lived experience of sociality, of culture, and of the past. The first of two parts examines space and time from a cultural perspective, and contrasts the idea of universal or objective time with lived time in the context of community. It looks at the conventions of calendar time in different cultures. The second part examines the idea of different historical points of view on place and time. Narrative and the idea of “virtual history,” which looks at counterfactual readings of history, are also examined.Less
This chapter returns to a more direct phenomenological approach and takes up important themes that figure in our experience of history. Space and time are treated not as abstract dimensions but as features of the lived experience of sociality, of culture, and of the past. The first of two parts examines space and time from a cultural perspective, and contrasts the idea of universal or objective time with lived time in the context of community. It looks at the conventions of calendar time in different cultures. The second part examines the idea of different historical points of view on place and time. Narrative and the idea of “virtual history,” which looks at counterfactual readings of history, are also examined.
