The velocity of money: evidence for the U.K. 1911-1966.

Graves, Philip E. (1980): The velocity of money: evidence for the U.K. 1911-1966. Published in: Economic Inquiry , Vol. 18, No. 4 : pp. 631-639.

Abstract

This paper presents secular evidence on the income velocity of money balances. Under a variety of specifications and statistical techniques, employed on both traditional and non-traditional variables, the Friedman assertion that money is a superior good is found to lack empirical support. Indeed, income elasticities of demand for M2 balances of .3 to .45 are observed, elasticities much smaller than previously thought.

• Item Type: MPRA Paper
• Language: English
• Keywords: Money demand; velocity of money; income elasticity of money balances
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; A - General Economics and Teaching > A1 - General Economics; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money

References

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