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Graf Lambsdorff, J. The Puzzle with Increasing Money Demand - Evidence from a Cross-Section of Countries. Credit and Capital Markets – Kredit und Kapital, 38(2), 155-176. https://doi.org/10.3790/ccm.38.2.155
Graf Lambsdorff, Johann "The Puzzle with Increasing Money Demand - Evidence from a Cross-Section of Countries" Credit and Capital Markets – Kredit und Kapital 38.2, 2005, 155-176. https://doi.org/10.3790/ccm.38.2.155
Graf Lambsdorff, Johann (2005): The Puzzle with Increasing Money Demand - Evidence from a Cross-Section of Countries, in: Credit and Capital Markets – Kredit und Kapital, vol. 38, iss. 2, 155-176, [online] https://doi.org/10.3790/ccm.38.2.155

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The Puzzle with Increasing Money Demand - Evidence from a Cross-Section of Countries

Graf Lambsdorff, Johann

Credit and Capital Markets – Kredit und Kapital, Vol. 38 (2005), Iss. 2 : pp. 155–176

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Johann Graf Lambsdorff, Passau

References

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Abstract

The ratio of money demand to GDP may increase with portfolio demand, monetization, and a deeper division of labor. Using a cross-section approach to money demand for 126 countries this study shows that the share of agriculture, life expectancy at birth, openness, and trust in the banking system capture a good deal of these influences. Once these variables are included, GNP per head negatively impacts on the ratio of money demand to GDP, which is in line with the standard result by Tobin and Baumol. (JEL E41, C21)