A Revealed Preference Analysis of Friedman and Schwartz Money

James L Swofford

Journal of Money, Credit and Banking, 1995, vol. 27, issue 1, 154-64

Abstract: In their seminal series of books Friedman and Schwartz concluded that the appropriate assets to aggregate into money are currency, demand deposits and time deposits issued by commercial banks. For this paper I used revealed preference analysis to test the validity of this conclusion. I find that these financial assets pass tests for the existence of a monetary aggregate consistent with the economic theory of aggregation over goods. For a short period after World War II, the data are consistent with a more broadly defined monetary aggregate. A reputable index number like the Divisia index must be employed to form these assets into an aggregate consistent with the economic theory of aggregation. Copyright 1995 by Ohio State University Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-2879%2819950 ... 0.CO%3B2-3&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:27:y:1995:i:1:p:154-64

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().