The Demand for High-Powered Money.

The article throws light on the demand for high-powered money in the U.S. The empirical analysis is often circumscribed by lack of data on many of the variables theory suggests can affect the demand for money, such as the interest rates paid on various categories of deposits and the quality or "mone...

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Publicado en:American Economic Review Vol. 66; no. 1; pp. 56 - 69
Autor principal: Lothian, James R.
Formato: Artículo
Publicado: American Economic Association Mar1976
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Acceso en línea:Ver este registro en EBSCOhost
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      pub: American Economic Association
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        atl: The Demand for High-Powered Money.
      aug:
        au: Lothian, James R.
        affil: Economist, First National City Bank.
      su:
        Demand for money
        Money
        Demand function
        Interest rates
        Analysis of variance
        Bank deposits
        Money supply
        Regression analysis
        Economic demand
        Economic indicators
      sug:
        subj:
          Demand for money
          Money
          Demand function
          Interest rates
          Analysis of variance
          Bank deposits
          Money supply
          Regression analysis
          Economic demand
          Economic indicators
      ab: The article throws light on the demand for high-powered money in the U.S. The empirical analysis is often circumscribed by lack of data on many of the variables theory suggests can affect the demand for money, such as the interest rates paid on various categories of deposits and the quality or "moneyness" of those deposits. Under some circumstances the omission of these variables can have a serious effect on the stability of conventional deposit-inclusive definitions of money, causing them to be highly imperfect indicators of the effects of money on the overall economy. The solution that the author proposes in these situations is to return to a narrower definition of money, high-powered money alone. The rationale is that since high-powered money is of relatively constant quality over time and space, such specification errors are likely to be less important for high-powered money than for deposit-inclusive totals. The demand for high-powered money should be more stable than the demand for other monetary aggregates.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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