Empirical Modeling of Money Demand
Posted: 9 Sep 1998
This paper examines several central issues in the empirical modeling of money demand. These issues include economic theory, data measurement, parameter constancy, the opportunity cost of holding money, cointegration, model specification, exogeneity, and inferences for policy. Review of these issues at a general level is paralleled by discussion of specific empirical applications, including some new results on the demand for narrow money in the United Kingdom.
JEL Classification: E41, E52
Suggested Citation: Suggested Citation