Zur Umlaufsgeschwindigkeit von M3 / On the Income Velocity of Money Stock M3

Möller H. and Jarchow H.-J.
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Möller H.: Lehrstuhl für Volkswirtschaftslehre, insbesondere für Geld und Währung, Universität Göttingen, Platz der Göttinger Sieben 3, D-37073 Göttingen
Jarchow H.-J.: Göttingen Lehrstuhl für Volkswirtschaftslehre, insbesondere für Geld und Währung, Universität Göttingen, Platz der Göttinger Sieben 3, D-37073 Göttingen

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 1996, vol. 215, issue 3, 308-327

Abstract: The income velocity of money stock M3 and its decreasing trend in Germany is investigated by the Johansen procedure. Leaving aside wealth effects, the long run cointegrating relationship for the income velocity yields a negative income effect, hence an income elasticity of money demand greater than one. Taking wealth effects into account, a negative influence of wealth on the income velocity emerges, whereas the income elasticity approaches one. The short run dynamics show a lagged positive influence of the interest rate on the income velocity, whereas income and wealth exert their influence almost completely in the first quarter.

Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:215:y:1996:i:3:p:308-327:n:1005

DOI: 10.1515/jbnst-1996-0305

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