Title of article
Short-runmoneydemand$
Author/Authors
Laurence Ball، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2012
Pages
12
From page
622
To page
633
Abstract
The conventionalwisdomholdsthattheshort-rundemandformoneyisunstable.This
paperchallengestheconventionalviewbyfindingastabledemandforM1inU.S.data
from 1959through1993.Theapproachfollowspreviousworkininterpretinglong-run
moneydemandasacointegratingrelation,anditusesGoldfeld’spartial-adjustment
modeltointerpretshort-rundynamics.Thekeyinnovationisthechoiceoftheinterest
rateinthemoneydemandfunction.Mostpreviousworkusesashort-termmarketrate,
but thispaperusestheaveragereturnon‘‘nearmonies’’—the savingsaccountsand
moneymarketmutualfundsthatareclosesubstitutesforM1.Thischoicehelps
rationalizethebehaviorofmoneydemand;inparticular,theincreaseinthevolatilityof
velocityafter1980isexplainedbyincreasedvolatilityinthereturnsonnearmonies
Journal title
Journal of Monetary Economics
Serial Year
2012
Journal title
Journal of Monetary Economics
Record number
846547
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