China has been moving to a more market oriented financial system, which has implications for the monetary policy environment. The paper investigates the stability of the money demand function (MDF) in light of progress in financial sector reforms that, for example, have resulted in significant...

A number of OECD countries experienced an environment of low interest rates and a rapid increase in housing market activity during the last decade. Previous work suggests three potential explanations for these events: expansionary monetary policy, capital inflows due to a global savings glut and...

Some analysts contend that the introduction nationwide since 1981 of interest-bearing NOWs and Super NOW's has raised the interest elasticity of M1 demand. This article presents empirical evidence consistent with this view. The demand deposit component of Ml does not exhibit any heightened...