IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2412.08657.html
   My bibliography  Save this paper

Log-Ergodic Dynamics in Stochastic Monetary Velocity: Theoretical Insights and Economic Implications

Author

Listed:
  • Kiarash Firouzi
  • Mohammad Jelodari Mamaghani

Abstract

We suggest employing log-ergodic processes to simulate the velocity of money in an ergodic manner. Our approach sheds light on economic behavior, policy implications, and financial dynamics by maintaining long-term stability. By bridging theory and practice, the partially ergodic model helps analysts and policymakers comprehend and forecast velocity of money. The empirical analysis, using historical U.S. GDP and money supply data, demonstrates the model's effectiveness in capturing the long-term stability of the velocity of money. Key findings indicate that the log-ergodic model offers superior predictive power compared to traditional models, making it a valuable tool for policymakers to control economic factors in vital situations.

Suggested Citation

  • Kiarash Firouzi & Mohammad Jelodari Mamaghani, 2024. "Log-Ergodic Dynamics in Stochastic Monetary Velocity: Theoretical Insights and Economic Implications," Papers 2412.08657, arXiv.org.
  • Handle: RePEc:arx:papers:2412.08657
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2412.08657
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2412.08657. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.