Financial evolution and the long-run behavior of velocity : new evidence from U.S. regional data

Innovations in the private financial sector influence the income velocity of money in an economy over the entire course of its development. In the early stages of growth, increased monetization, as manifested by the spread of the banking system, causes velocity to fall. Later, the emergence of nonbank financial intermediaries causes velocity to rise. Evidence of these patterns is found in regional demand deposit data from the United States.

MoreLess

Year of publication:	1991
Authors:	Ireland, Peter N.
Published in:	Economic Review. - Federal Reserve Bank of Richmond. - 1991, Nov, v. 77, no. 6, p. 16-26
Publisher:	Federal Reserve Bank of Richmond
Subject:	Money \| Regional economics

More details

Extent:	application/pdf
Type of publication:	Article
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005063875