Document Type
Discussion Paper
Publication Date
12-1-1986
CFDP Number
813
CFDP Pages
17
Abstract
One of the current questions in the literature on the demand for money is whether the adjustment of actual to desired money holdings is in nominal or real terms. This paper describes a simple procedure that can be used to test the nominal against the real hypothesis. The test is carried out for 27 countries. The paper also tests the structural stability of the demand for money equations and the correctness of the dynamic specification.
Recommended Citation
Fair, Ray C., "International Evidence on the Demand for Money" (1986). Cowles Foundation Discussion Papers. 1056.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1056