The Demand for Currency in the United States

Michael Dotsey

Journal of Money, Credit and Banking, 1988, vol. 20, issue 1, 22-40

Abstract: The idea of totally deregulating the financial system and implementing monetary policy through currency control has received renewed attention. An important aspect concernin g the desirability of using currency as the instrument of policy is t he behavior of the demand for currency. This paper investigates the d emand for currency over the period 1921-80 and finds that currency be haves in a systematic and explainable manner over this period. Copyright 1988 by Ohio State University Press.

Date: 1988
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