"... In PAGE 18: ....1-2.4% per annum lower than if they had invested their money in the U.S. [Insert Table5 about here] In order to obtain a more detailed view of the difference of U.S.... In PAGE 27: ...Table5 . Comparison of CD and Prime Rates in U.... ..."

"... In PAGE 23: ... To address this possibility, we check whether the export intensity of export- intensive firms varies with aggregate variables that proxy for changes in domestic demand. The first column of Table5 a displays a regression of firm-by-firm and year-by- year Export share on firm characteristics, GDP growth, the nominal exchange rate, and the lagged interest rate. We find that Export share does not vary with GDP growth nor with the lagged interest rate, which is not consistent with the interpretation that exporting firms shift sales activity to markets overseas in response to a lower domestic demand induced by tight money.... In PAGE 23: ... In that case, their domestic sales should respond to the domestic interest rate whereas their export sales should not. To check this, we regress the domestic and export sales of the export- intensive firms in our sample on the lagged interest rate, controlling for firm characteristics; see the third and fourth columns of Table5 a. We find that neither domestic nor and export sales respond to tight money, which is not consistent with this interpretation.... In PAGE 23: ... We find that neither domestic nor and export sales respond to tight money, which is not consistent with this interpretation. Moreover, the sales of the non-exporting firms exhibit a negative and significant response to the lagged interest rate; see the second column of Table5 a. This is consistent... In PAGE 24: ...more strongly on the investment of firms that have less access to foreign currency denominated credit. As an additional check, we performed the regressions of Table 2a controlling for GDP growth (see Table5 b) obtaining virtually identical results and an insignificant coefficient on GDP growth. We also used aggregate consumption growth as an alternative control for demand obtaining the same results (not shown).... ..."

"... In PAGE 23: ... To address this possibility, we check whether the export intensity of export- intensive firms varies with aggregate variables that proxy for changes in domestic demand. The first column of Table5 a displays a regression of firm-by-firm and year-by- year Export share on firm characteristics, GDP growth, the nominal exchange rate, and the lagged interest rate. We find that Export share does not vary with GDP growth nor with the lagged interest rate, which is not consistent with the interpretation that exporting firms shift sales activity to markets overseas in response to a lower domestic demand induced by tight money.... In PAGE 23: ... In that case, their domestic sales should respond to the domestic interest rate whereas their export sales should not. To check this, we regress the domestic and export sales of the export- intensive firms in our sample on the lagged interest rate, controlling for firm characteristics; see the third and fourth columns of Table5 a. We find that neither domestic nor and export sales respond to tight money, which is not consistent with this interpretation.... In PAGE 23: ... We find that neither domestic nor and export sales respond to tight money, which is not consistent with this interpretation. Moreover, the sales of the non-exporting firms exhibit a negative and significant response to the lagged interest rate; see the second column of Table5 a. This is consistent... In PAGE 24: ...more strongly on the investment of firms that have less access to foreign currency denominated credit. As an additional check, we performed the regressions of Table 2a controlling for GDP growth (see Table5 b) obtaining virtually identical results and an insignificant coefficient on GDP growth. We also used aggregate consumption growth as an alternative control for demand obtaining the same results (not shown).... ..."

"... In PAGE 39: ... The additions include holdings of government bonds, time deposits, and commercial paper. Table9 displays OLS estimates of the money demand equation (3) apos;, using the log of quot;cash and short-term investments quot; as the dependent variable. Only year effects and log sales are included as regressors in column 1; the sales elasticity for liquid assets (0.... In PAGE 40: ...i. for the years 1969-90 (5) year effects are estimated in every regression (6) N is the number of firm-year cells included in the regression (7) standard errors are displayed in parentheses It appears from Table9 that the wage and sales elasticities of the demand for the more broad... ..."

"... In PAGE 12: ...- 11 - B. Money and Inflation Figure 2 and Table6 show the cross-sectional (long-run) relationship between inflation and money growth, with each observation representing the simple average over the sample period of the inflation and the money growth rates, each defined as ln(1 + x/100) where x is the corresponding annual rate. As shown in 2, the relationship between money growth and inflation is extremely strong and close to one-to-one.... In PAGE 12: ...25 The regression coefficient is in fact 1.115 and highly significant ( Table6 , column 1). Furthermore, the relationship holds even when the sample is broken up into high and low inflation countries (Table 6, column 2).... In PAGE 12: ... We then take a sub-sample that includes only high inflation countries and test for different coefficients on high and low inflation episodes. We find that while the relationship between money and inflation remains highly significant ( Table6 , columns 4 and 5) for both groups of countries, the coefficient for low inflation countries is much lower, a result that is perhaps not surprising given that we are looking at a short-run relationship and the fact that GDP growth is not taken into account in the regressions. When two lags on money growth are included in the panel regression (Table 6, column 5), the coefficients on both contemporaneous and lagged money growth are significant and different across high and low inflation countries.... In PAGE 12: ... The contrast between high and low inflation countries in the speed with which the effects of money growth are transmitted is quite dramatic: the bulk of the inflationary effects of money growth occurs remarkably early in the high inflation countries; in low inflation countries, in contrast, the effects are distributed evenly across the current and previous periods. In the panel sub-sample with only high inflation countries ( Table6 , columns 6 and 7), the previous results of a strong effect of money growth on inflation carry through. We also find a differential effect during high and low inflation episodes within high inflation countries, which is likely to be due to (i) GDP growth being more important relative to the inflation rate during low inflation years, and (ii) the negative impact of high inflation on the demand for money.... In PAGE 12: ... We also find a differential effect during high and low inflation episodes within high inflation countries, which is likely to be due to (i) GDP growth being more important relative to the inflation rate during low inflation years, and (ii) the negative impact of high inflation on the demand for money.26 In line with our previous findings, adding lags shows that the bulk of the effects take place contemporaneously ( Table6 , column 6). 25 The outlier in Figure 1 is Nicaragua (the furthermost from the regression line).... ..."

"... In PAGE 8: ... Evidently asymmetry in aggregate price indices merely reflects asymmetry in the underlying components. Table3 reports triples statistics of growth rates for several monetary aggregates at the monthly, quarterly and annual frequencies. I use both simple monetary aggregates, and optimal monetary services aggregates (i.... ..."

"... In PAGE 22: ....K.: Flow of Funds. Institutional investors in the United States hold most of their assets in marketable securities, either bonds or stocks, as indicated in Table8 . The case is similar in the United Kingdom.... ..."

"... In PAGE 9: ... First, for the seven countries he investigates, Razzak (1998) locates this positive asymmetry in growth rates mainly during the Post- Bretton Woods era. Second, the source of this asymmetry is not asymmetric money growth: Table3 shows that asymmetric money growth is rather uncommon. (Verbrugge 1998 confirms this finding for US data; none of the six monetary aggregates studied displays positive growth rate asymmetry.... ..."