Demand for Money: An Analysis of the Long-run Behavior of the Velocity of Circulation (Paperback)
  • Demand for Money: An Analysis of the Long-run Behavior of the Velocity of Circulation (Paperback)
zoom

Demand for Money: An Analysis of the Long-run Behavior of the Velocity of Circulation (Paperback)

(author)
£36.99
Paperback 208 Pages / Published: 30/06/2003
  • We can order this

Usually dispatched within 3 weeks

  • This item has been added to your basket

The income velocity of money-an inverse measure of the demand for money balances-is the ratio of the money value of income to the average money stock that the public (excluding banks) holds in a given period. Why the magnitude of that ratio has changed over time is the subject of Michael D. Bordo and Lars Jonung's classic study, originally published as The Long-Run Behavior of the Velocity of Circulation. Supported by statistical data, econometric estimation techniques, and meticulous historical analysis, this work describes, in an international setting, how slow-moving economic, social, and political forces interact with the decisions households and firms make about how much money to hold.

Annual time series of velocity for several countries from the late nineteenth century to the late twentieth century display a U-shaped pattern. Existing theories can explain each section of the velocity curve-the falling, flat, and rising parts-but the overall pattern is not consistent with any one theory. Here the authors put forth a comprehensive explanation for this behavior over time. Their theory is largely an extension of the approach of Knut Wicksell, the Swedish economist who stressed the role of substitution between monetary assets. This approach, which emphasizes institutional variables, is incorporated into the arguments for the traditional long-run money demand (velocity) function. Four types of empirical evidence strongly support the authors' theory: econometric studies of the long-run velocity function for several countries; a cross section study of approximately eighty countries in the postwar period; a case study of the Swedish monetization process in the fifty years before World War I; and an examination of the time series properties of velocity.

Demand for Money suggests that institutional factors, as opposed to real income, play a greater role in velocity than previously thought. And these institutional factors have a major impact on monetary policy. This is a book that will prove of great value to economists, monetary strategists, and policymakers.

Publisher: Taylor & Francis Inc
ISBN: 9780765809612
Number of pages: 208
Weight: 295 g
Dimensions: 229 x 152 x 12 mm

You may also be interested in...

Capital
Added to basket
£8.99
Paperback
A Brief History of Neoliberalism
Added to basket
Wealth of Nations
Added to basket
£3.99
Paperback
The Essential Keynes
Added to basket
Capital
Added to basket
£3.99
Paperback
Microeconomic Theory
Added to basket
Capitalism and Freedom
Added to basket
Keynes
Added to basket
£9.99
Paperback
The Wealth of Nations
Added to basket
The Affluent Society
Added to basket
Keynes: A Very Short Introduction
Added to basket
Game Theory: A Very Short Introduction
Added to basket
Conspicuous Consumption
Added to basket
How Much is Enough?
Added to basket

Reviews

Please sign in to write a review

Your review has been submitted successfully.