The velocity of money: evidence for the U.K. 1911-1966.

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. Indeed, income elasticities of demand for M2 balances of .3 to .45 are observed, elasticities much smaller than previously thought.

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Year of publication:	1980-10
Authors:	Graves, Philip E.
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Money demand \| velocity of money \| income elasticity of money balances

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	E0 - Macroeconomics and Monetary Economics. General ; A1 - General Economics ; E4 - Money and Interest Rates ; E41 - Demand for Money
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008567643