To be useful as policy indicators, the monetary aggregates M1 and M2 must either (1) provide information on the current state of the economy or (2) help predict future values of economic variables that are of concern to the policymakers. Statistical analysis shows that these aggregates perform...

The idea of totally deregulating the financial system and implementing monetary policy through currency control has received renewed attention. An important aspect concerning the desirability of using currency as the instrument of policy is the behavior of the demand for currency. If currency...

During the mid-1970s standard regressions explaining the demand for money underwent a well-documented shift. This shift was largely attributed to the adoption of more sophisticated methods of cash management practices by firms. Specifically, techniques were developed that allowed firms to...