TOTAL TRANSACTION MEASURES AND M1 GROWTH
This paper examines the role of measures of total transactions in explaining growth in the demand for Ml money balances. Fueled by strong growth in financial activities, total transactions have grown rapidly relative to nominal GNP, especially since 1979. In an aggregate Ml equation, we find financial transaction measures to be of some additional help in explaining Ml growth, beyond the ability of GNP to do so alone. A disaggregated approach shows more promise, with transaction measures improving the explanation of demand deposit growth. Copyright 1987 Western Economic Association International.
Year of publication: |
1987
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Authors: | KRETZMER, PETER E. ; PORTER, RICHARD D. |
Published in: |
Contemporary Economic Policy. - Western Economic Association International - WEAI, ISSN 1074-3529. - Vol. 5.1987, 1, p. 64-75
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Publisher: |
Western Economic Association International - WEAI |
Saved in:
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