The Shift in Money Demand: What Really Happened?

Rik W. Hafer · Scott E. Hein

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Monetary Policy and Economic Impact Economic Theory and Policy Economic theories and models

Abstract

The money demand function is a key relationship in conventional macroeconomic models. When it appeared that during the mid-1970s the conventional specification had undergone an unforeseen shift, analysts devoted considerable ingenuity and research effort to testing alternative explanatory variables that would account for the change.

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2003FINANCIAL INNOVATION AND THE DEMAND FOR MONEY: EVIDENCE FROM THE PHILIPPINES 1985Money Demand Dynamics: Some New Evidence 1991INSTABILITY OF THE U.S. MONEY DEMAND FUNCTION 1985Income or Wealth in Money Demand: An Application of Non-Nested Hypothesis Tests

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