A New Financial and Economic Context of Crisis a New Principle for Analyzing its Mechanism and Determinants

摘要

This work paper aims to identify the relationship between money and economic activities through a new vision. For that, we reviewed financial economics literacy to sort out their principles which provide analysis of money and economic activities interaction according to appropriate financial and economic context. Recently, new context has been appeared which needs new approach analysis. For that, we suggest to take consideration of all actors' behaviors, money holders, investors and government, and their different decisions. The main results hold that money changes can disrupt, given financial and economic environment context, in different way goods' price level, interest rate and income. Environment context is identified, first, by money status, which means that if money is formed by gold or separated from this precious metal and if gold market and money market do exist. Second, environment context is determined by in one side money demand motives for transaction or speculative, in other side money supply components which means what part oriented to transaction from other oriented to speculative. Third, and finally, environment context is depended opposite actors' behaviors weight towards liquidity preference.