Survey of Literature on Demand for Money: Theoretical and Empirical Work with Special Reference to Error-Correction Models

May 1, 1999

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Format: Chicago

Subramanian S Sriram. Survey of Literature on Demand for Money: Theoretical and Empirical Work with Special Reference to Error-Correction Models, (USA: International Monetary Fund, 1999) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

A stable money demand forms the cornerstone in formulating and conducting monetary policy. Consequently, numerous theoretical and empirical studies have been conducted in both industrial and developing countries to evaluate the determinants and the stability of the money demand function. This paper briefly reviews the theoretical work, tracing the contributions of several researchers beginning from the classical economists, and explains relevant empirical issues in modeling and estimating money demand functions. Notably, it summarizes the salient features of a number of recent studies that applied cointegration/error-correction models in the 1990s, and it features a bibliography to aid in research on demand for money.

Subject: Currencies, Demand for money, Monetary aggregates, Monetary base, Money, National accounts, Personal income

Keywords: Amount of money, Cointegration, Consumer demand, Currencies, Demand for money, Error-correction models, Literature survey, Medium of exchange, Monetary aggregates, Monetary base, Money demand, Money demand function, Money stock, Narrow money, Opportunity cost, Personal income, Precautionary demand, Quantity theory, Rate of inflation, Rate of interest, Velocity of circulation, Western Europe, WP

Publication Details

Pages:

77
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/064
Stock No:

WPIEA0641999
ISBN:

9781451848540
ISSN:

1018-5941

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