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Some Comments on the Stability of the Demand for Money

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Jüttner, D., Tuckwell, R. Some Comments on the Stability of the Demand for Money. Credit and Capital Markets – Kredit und Kapital, 14(3), 384-389. https://doi.org/10.3790/ccm.14.3.384
Jüttner, D. Johannes and Tuckwell, Roger H. "Some Comments on the Stability of the Demand for Money" Credit and Capital Markets – Kredit und Kapital 14.3, 1981, 384-389. https://doi.org/10.3790/ccm.14.3.384
Jüttner, D. Johannes/Tuckwell, Roger H. (1981): Some Comments on the Stability of the Demand for Money, in: Credit and Capital Markets – Kredit und Kapital, vol. 14, iss. 3, 384-389, [online] https://doi.org/10.3790/ccm.14.3.384

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Some Comments on the Stability of the Demand for Money

Jüttner, D. Johannes | Tuckwell, Roger H.

Credit and Capital Markets – Kredit und Kapital, Vol. 14 (1981), Iss. 3 : pp. 384–389

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Article Details

Jüttner, D. Johannes

Tuckwell, Roger H.

References

  1. W.C. Brainard: Financial Intermediaries and a Theory of Monetary Control, in: Yale Economic Essay, Fall 1964, pp. 431 - 482; reprinted in: Financial Markets and Economic Activity, D. D. Hester and J. Tobin, eds., New York, 1967, pp. 94- 141.  Google Scholar
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Abstract

Some Comments on the Stability of the Demand for Money

The relevance of the demand for money and its stability for the effective implementation of monetary policy has been well documented; empirical estimates and tests of stability are legion. The theoretical bases for the empirical tests have varied considerably both over time and from one study to another, depending on both the state of theoretical wisdom and the structure and idiosyncrasies of particular monetary systems. This paper emphasises the importance of the need for consistency between the theoretical assertions, on the one hand, and the precise form in which they are empirically tested on the other. Inconsistencies of this nature render both the empirical equations and the associated tests of stability of little worth. It is against this background that some empirical formulations of the demand for money in Australia are examined.