The study estimates the long-run equilibrium relationship between money balance as a ratio of income and treasury bill rate for the Zimbabwean economy. These estimates are done for two periods, the entire period (using quarterly data) of 1980:01 to 2005:04 and the hyperinflationary period (using...

In this paper we argue that the relevant decision for the majority of US households is not the fraction of assets to be held in interest-bearing form, but whether to hold such assets at all (we call this ‘the decision to adopt’ financial technology). We show that the key variable governing...

This paper examines measures of excess liquidity for Turkey and the role they play on the future price developments. The measures used in the study are the real money gap and its various sub-components such as pure money shocks and excess liquidity due to the money market. The coefficients,...

Using U.S. and euro area data, this paper presents a significant and proportional relationship between money growth and subsequent inflation when accounting for equilibrium velocity movements due to inflation regimes changes. These movements, driven by money demand adjustments to low-frequency...

Post-1980 U.S. data trace out a stable long-run money demand relationship of Cagan's semi-log form between the M1-income ratio and the nominal interest rate, with an interest semi-elasticity of 1.79. Integrating under this money demand curve yields estimates of the welfare cost of modest...

Using Japanese money market data, this paper compares the predictive ability of the log–log specification with infinite elasticity at a zero interest rate and the semilog specification with a one time switch from moderate to relatively high semielasticity at annual interest rates less than...

Traditional microeconomic approaches to money demand issues are considered in the article. The author also discusses current view of monetary theory on concept of “money”. New approach gives reasoning to existence of variety of payment innovations.

Traditional microeconomic approaches to demand for money problem are considered in the article. It also discusses current view of monetary theory on concept of “money”. New approach gives reasoning to existence of variety of payment innovations. It provides theoretical base for inclusion of...