학술논문
Six decades of inflation and money demand.
Document Type
Article
Author
Source
Subject
*Demand for money
*Money market
*Money supply
*Price inflation
*Banking policy
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Language
ISSN
1055-0925
Abstract
The present estimates of dollar demand treat inflation as a separate variable in a money market model with annual data covering nearly six decades from 1960 to 2017. The difference stationary series lead to robust error correction estimates in double log differences. Structural breaks for money supply targeting in 1980 and bank bailout policy in 2009 improve the estimates. Inflation has an elastic effect on store of value and transactions demands. Rising income incompletely offsets declining dollar demand. Transactions demand appears to be especially sensitive to a decrease in inflation. [ABSTRACT FROM AUTHOR]