Cook, David; Choi, Woon Gyu - International Monetary Fund (IMF) - 2007
This paper examines empirically U.S. broad money demand emphasizing the role of financial market risk. We find that … money demand rises with the liquidity risk of stock markets or the credit risk of corporate bond markets. After controlling … for the effect of financial market risk, money demand becomes relatively stable over the last 35 years. At the sectoral …