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 …

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 …

models currently used for macroeconomic analysis exclude money or else model money demand as entirely endogenous …. Nevertheless, academic research and many textbooks continue to use the money multiplier concept in discussions of money. We explore … the institutional structure of the transmission mechanism beginning with open market operations through to money and loans …

), which loses value on a predetermined timescale. This loss of value is intended to encourage the money owners to spend their … money quickly in order to boost local demand. The paper shows that the issuance of unofficial parallel currencies is not a …

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 …

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 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 …