A Monetarist Money Demand Function

5 Pages Posted: 24 Aug 2012

See all articles by Robert L. Hetzel

Robert L. Hetzel

Federal Reserve Banks - Federal Reserve Bank of Richmond

Date Written: 1984


In the first part of this article, inflation as a monetary phenomenon is discussed. The discussion is from the perspective of the modern formulation of the quantity theory. (See, in particular, Chapter 2 in Friedman and Schwartz, Monetary Trends in the United States and the United Kingdom). In the second part of the article, empirical estimation of the relationship between money growth and inflation is discussed. The article that accompanies this one; “The Behavior of the M1 Demand Function in the Early 1980s” contains the results of estimating this relationship for the post-Korean War period in the United States.

Suggested Citation

Hetzel, Robert L., A Monetarist Money Demand Function (1984). FRB Richmond Economic Review, Vol. 70, No. 6, November/December 1984, pp. 15-19, Available at SSRN: https://ssrn.com/abstract=2120071

Robert L. Hetzel (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

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