International Evidence on Long Run Money Demand

Luca Benati (), Robert Lucas, Juan Pablo Nicolini and Warren Weber

No 22475, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We explore the long-run demand for M1 based on a dataset comprising 31 countries since 1851. In many cases cointegration tests identify a long-run equilibrium relationship between either velocity and the short rate, or M1, GDP, and the short rate. Evidence is especially strong for the United States and the United Kingdom over the entire period since World War I, and for high-inflation countries such as Israel. For low-inflation countries the data often prefer the specification in the levels of velocity and the short rate originally estimated by Selden (1956) and Latané (1960) to either the log-log, or the semi-log ones. This is especially clear for the United States.

JEL-codes: E4 E41 (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-his, nep-mac and nep-mon
Note: EFG ME
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Citations: View citations in EconPapers (19)

Published as Luca Benati & Robert E. Lucas & Juan Pablo Nicolini & Warren Weber, 2020. "International Evidence on Long-Run Money Demand," Journal of Monetary Economics, .

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Related works:
Journal Article: International evidence on long-run money demand (2021)
Working Paper: International Evidence on Long-Run Money Demand (2019)
Working Paper: International Evidence on Long-Run Money Demand (2017)
Working Paper: International Evidence on Long Run Money Demand (2017)
Working Paper: International Evidence on Long Run Money Demand (2016)
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