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International Comparisons of Money Demand: A Review Essay

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  • Mr. James M. Boughton

Abstract

Many studies of the demand for money, covering a wide variety of economies, have demonstrated the importance of financial innovations and shifts in monetary policy regimes, but they have also illustrated the difficulty of measuring and assessing such changes. Because innovations and regime shifts have differed markedly across countries, international comparisons can help identify their effects. This paper reviews the literature on money demand comparisons, focusing primarily on industrial countries. It finds that innovations have had widespread effects, but also that the demand for money is not generally less stable now than it was before those changes occurred.

Suggested Citation

  • Mr. James M. Boughton, 1992. "International Comparisons of Money Demand: A Review Essay," IMF Working Papers 1992/007, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1992/007
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    1. Siklos, P., 1989. "Velocity And Institutional Change: Evidence From Canada, The U.K. And U.S., 1870-1986," Economics Series Working Papers 9977, University of Oxford, Department of Economics.
    2. Arrau, Patricio & De Gregorio, Jose & Reinhart, Carmen M. & Wickham, Peter, 1995. "The demand for money in developing countries: Assessing the role of financial innovation," Journal of Development Economics, Elsevier, vol. 46(2), pages 317-340, April.
    3. Artis, M J & Lewis, M K, 1976. "The Demand for Money in the United Kingdom: 1963-1973," The Manchester School of Economic & Social Studies, University of Manchester, vol. 44(2), pages 147-181, June.
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    6. Ross Milbourne, 1988. "Disequilibrium Buffer Stock Models: A Survey," Working Paper 715, Economics Department, Queen's University.
    7. Arango, Sebastian & Ishaq Nadiri, M., 1981. "Demand for money in open economies," Journal of Monetary Economics, Elsevier, vol. 7(1), pages 69-83.
    8. Al-Khuri, Samir & Nsouli, Saleh M., 1978. "The speed of adjustment of the actual to the desired money stock : A comparative study," European Economic Review, Elsevier, vol. 11(2), pages 181-206, August.
    9. Blejer, Mario I., 1978. "Black-market exchange-rate expectations and the domestic demand for money : Some empirical results," Journal of Monetary Economics, Elsevier, vol. 4(4), pages 767-773, November.
    10. Portes, Richard & Winter, David, 1978. "The Demand for Money and for Consumption Goods in Centrally Planned Economies," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 8-18, February.
    11. Milbourne, Ross, 1988. "Disequilibrium Buffer Stock Models: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 2(3), pages 187-208.
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    Cited by:

    1. Michael D. Bordo & Lars Jonung & Pierre Siklos, 1993. "The Common Development of Institutional Change as Measured by Income Velocity: A Century of Evidence from Industrialized Countries," NBER Working Papers 4379, National Bureau of Economic Research, Inc.
    2. Vittorio Daniele & Pasquale Foresti & Oreste Napolitano, 2017. "The stability of money demand in the long-run: Italy 1861–2011," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(2), pages 217-244, May.
    3. Mustapha Abiodun Akinkunmi, . "Money Demand in Developing Countries: A Dynamic Panel Approach," Fordham Economics Dissertations, Fordham University, Department of Economics, number 2004.1.
    4. Armando Rodríguez Zerpa, José U. Mora Mora, 2013. "La demanda de dinero y las innovaciones financieras en Venezuela: equilibrio de largo plazo," Revista CIFE, Universidad Santo Tomás, June.

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