Monetary aggregates

  • Long-Run Demand for M1

    Staff Working Paper 1995-11 Scott Hendry
    The goal of this paper is to investigate and estimate long-run relationships among M1, prices, output and interest rates, with a view to determining if there is a stable relationship that can be interpreted as long-run money demand. The paper uses a maximum-likelihood multiple-equation cointegration technique, developed by Johansen, to fit a system of equations […]

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