The Demand for Money
A Cross-Section Study of British Business Firms
Bibliographic Data
| ID | 9725495 |
|---|---|
| Authors | Louis De Alessi (corresponding author) |
| Year | 1966 |
| Volume | 33 |
| Issue | 131 |
| Pages | 288 |
| Publication date | 1966-08-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2552405 |
| OpenAlex | W2323218831 |
| Language | EN |
| Citations received | 1 |
Some substantive issues currently discussed by monetary theorists are the definition of money, the stability of the demand for money, and the relative importance of the arguments in the money demand function.2 Friedman, in a study of the behaviour of aggregate cash balances and velocity in the United States, included time deposits in his definition of money. The empirical results that he observed led him to conclude, among other things, that the wealth elasticity of the demand for money is greater than one and that the demand for money is not statistically sensitive to changes in the rate of interest.3 Meltzer has suggested that these results are due, at least in part, to Friedman's definition of money. Meltzer's empirical work, also based on US data, supports the contention that money, defined as currency plus demand deposits, yields a stable demand function whicn has a wealth elasticity of about one and is sensitive to changes in the rate of interest; moreover, his evidence suggests that the broader the definition of money, the greater is the wealth elasticity and the smaller is the interest elasticity observed. The theoretical considerations that Meltzer adduces to support his evidence are convincing enough to justify further study of the issues involved.4 The present study has two major objectives. The first is to obtain additional evidence concerning the predictive content of the wealth adjustment model.5 Although several implications of this model have
Aggregate demand · Cash · Currency · Demand curve · Demand deposit · Demand for money · Economics · Elasticity (physics) · Empirical evidence · Endogenous money · Interest rate · Macroeconomics · Microeconomics · Monetary economics · Monetary policy · Price elasticity of demand · Speculative demand · Velocity of money · Wealth elasticity of demand · Economic theories and models · Economic Theory and Institutions · Economic Theory and Policy
| Citations per year | 0.06 |
|---|---|
| Citation span | 2010 - 2010 (1) |
| Highly cited | No |