The paper presents and tests a theory of the demand for money that is derived from a general equilibrium, endogenous growth economy, which in e§ect combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher ináation and...

The paper presents and tests a theory of the demand for money that is derived from a general equilibrium, endogenous growth economy, which in effect combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher inflation and...