| Summary: | 碩士 === 淡江大學 === 經濟學系應用經濟學碩士班 === 91 === This paper employs a general equilibrium asset pricing framework in analyzing the equilibrium asset prices and the interdependence of important economic variables. Money is introduced via a Cash-In-Advance (CIA) interpretation which emphasizes the transactional role of money. Two distinct types of assets besides from money are incorporated into framework, they are corporate stocks and private bonds. Individuals seek to maximize their intertemporal utility function, wherein they make optimal choices on a number of decision variables such as amount of consumption. The determination of equilibrium prices of stocks and equilibrium interest rates of bonds are analyzed. The introduction of money in our model provides us the opportunity to examine the influences of monetary policy on the equilibrium asset prices, such as stock prices and interest rates of bonds. The analysis becomes even more interesting when we manipulate the setting of the CIA constraint. This has its crucial importance in that the composition of the CIA constraint decides ultimately which goods or assets are defined as cash goods or credit goods. Goods (assets) appearing in the CIA constraint are defined as cash goods, otherwise defined as credit goods. The identity of a good/asset (as being cash good or credit good) determines greatly the influences of monetary policy on its equilibrium prices and the magnitude of such influences. A brief extension is given on the term structure of interest rates where we allow the model to consist of two distinct bonds of different maturity dates. The relationship between short-term interest rates and long-term interest rates can thus be put into the spotlight.
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