The paper investigates the importance of domestic and foreign liquidity constraints and variablity of various sources of household income for the properties of the consumption function in the Czech economy, with the consequences for monetary policy and the exchange rate. For this purpose, the...

The stability and credibility of a national currency is one of the key factors for successful national economic development. Knowledge of the long-run demand for money helps the monetary authorities to determine what is the rate of growth of the money stock that would not lead to an excessive...