This paper reconsiders the long-run demand for M2 based on a newly constructed dataset featuring 32 countries since the first half of the 19th century. The evidence from cointegration tests suggests that a long-run equilibrium relationship for M2 demand is hardly present. Specifically, only...

Demand for money function in India has been experimented with various specification and estimation issues. The main focus of this exercise is to re-evaluate the performance of the money demand specifications in the context of identifying suitable determinants. The major concern of this effort is...

This paper presents secular evidence on the income velocity of money balances. Under a variety of specifications and statistical techniques, employed on both traditional and non-traditional variables, the Friedman assertion that money is a superior good is found to lack empirical support....