On the stability of money demand

Robert Lucas and Juan Pablo Nicolini

No 353, 2013 Meeting Papers from Society for Economic Dynamics

Abstract: In this paper we consider a simple model of transactional assets management to evaluate the changes in banking regulation that passed between 1980 and 1982. The model implies that the newly created deposits in the US after the deregulation should be taken into account in the proper definition of money, in a way the model itself makes explicit. We show that once this is taken into account, the money demand equation characterized by Meltzer (1960) and Lucas (2000) remained remarkably stable.

Date: 2013
New Economics Papers: this item is included in nep-cba, nep-dge and nep-his
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: On the stability of money demand (2015)
Working Paper: On the Stability of Money Demand (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:353

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