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Persistent link: https://www.econbiz.de/10001806643
We exposit the link between money, velocity and prices in an inventory-theoretic model of the demand for money and explore the extent to which such a model can account for the short-run volatility of velocity, the negative correlation of velocity and the ratio of money to consumption, and the...
Persistent link: https://www.econbiz.de/10013227900
Persistent link: https://www.econbiz.de/10003894200
Persistent link: https://www.econbiz.de/10003778793
We examine the responses of prices and inflation to monetary shocks in an inventory-theoretic model of money demand. We show that the price level responds sluggishly to an exogenous increase in the money stock because the dynamics of households' money inventories leads to a partially offsetting...
Persistent link: https://www.econbiz.de/10012765744
We exposit the link between money, velocity and prices in an inventory-theoretic model of the demand for money and explore the extent to which such a model can account for the short-run volatility of velocity, the negative correlation of velocity and the ratio of money to consumption, and the...
Persistent link: https://www.econbiz.de/10012468682