Details

Autor(en) / Beteiligte

• Lane, Timothy D.

Titel

COSTLY PORTFOLIO ADJUSTMENT AND THE SHORT RUN DEMAND FOR MONEY

Ist Teil von

• Economic inquiry, 1990-07, Vol.28 (3), p.466-487

Ort / Verlag

Oxford, UK: Blackwell Publishing Ltd

Erscheinungsjahr

1990

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• In many empirical studies the short‐run demand for money includes a lagged dependent variable; this is usually attributed to some cost of adjusting money balances toward their desired level. This short‐run money‐demand equation is sometimes used as a structural equation in models in which market clearing is also assumed (in the sense that money supply equals short–run money demand). In this paper, a theoretical counterexample demonstrates that this use of a short‐run money demand equation is not generally valid. This finding challenges the usual interpretation of the lagged dependent variable.