inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution … effects on real money holdings. Empirically, we show that cross-country differences in real balances are determined not only … by income differences, a standard determinant of money demand, but also by house price developments. Higher house prices …

Within a cointegrated VAR framework I show that the traditional money-demand relation, determined by a transaction … effect and the opportunity cost of holding money, can no longer explain the recent development of monetary aggregates in … both the explanatory power of money demand and stability of the long-run estimates. Identification of the long …

This paper studies consumer demand for real balances by allowing money to enter directly into an aggregate utility … function as an asset that provides liquidity services. The essay extends existing literature by investigating a money …

money demand. The increased use of credit as the inflation rate rises, and the increase elasticity of substitution between … money and credit, means the agent relies increasingly less on leisure to avoid the inflation tax. This lessens the negative …

The paper presents a theory of the demand for money that combines a special case of the shopping time exchange economy … the cost of credit - induce agents to substitute away from money towards exchange credit. This results in an interest … elasticity of money that rises with the inflation rate rather than the constant elasticity found in standard shopping time …

We introduce an approach for the empirical study of the quantity theory of money (QTM) that is novel both with respect … directly on the relationship between the rate of change of the money stock and inflation. We believe that this is an inferior …

The instability of standard money demand functions has undermined the role of monetary aggregates for monetary policy … instability of euro area money demand. Our results obtained from panel estimation indicate that the observed instability of … standard money demand functions could be explained by omitted variables like e.g. technological progress that are important for …

The instability of standard money demand functions has undermined the role of monetary aggregates for monetary policy … instability of euro area money demand. Our results obtained from panel estimation indicate that the observed instability of … standard money demand functions could be explained by omitted variables like e.g. technological progress that are important for …