The demand for money in the Netherlands revisited

Fase, M.M.G.; Winder, C.C.A.

doi:10.1007/bf01857777

Cited by 16 publications

(17 citation statements)

References 12 publications

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“…A striking feature is also that for both The Netherlands and Belgium the wealth elasticity of M2 is slightly higher than that of M3. The wealth elasticity of M2 in The Netherlands is similar to the value of 0.36 found in Fase and Winder (1990). With respect to the semi-elasticities of the short and long-term interest rates and the inflation rate, Table 1 shows that all the estimates obtained have the theoretically plausible signs and are, with the exception of M2 for both The Netherlands and Belgium, significantly different from 0.…”

Section: Theoretical Framework and Empirical Resultssupporting

confidence: 71%

“…Only for M2 in The Netherlands is the initial effect stronger than the long-run effect. A similar finding for this monetary aggregate was reported in Fase and Winder (1990).…”

Section: M/y% W 1-% Oc F(rk Rl P)supporting

confidence: 84%

“…This holds notably for the MI and M2-ratio and to a somewhat lesser extent for the M3-ratio. This stylized fact supports the hypothesis that the relatively strong growth of wealth explains the rise of the liquidity ratios in The Netherlands (see also Fase and Winder, 1990). For Belgium, however, the developments of the various liquidity ratios are not in line with that of the wealth-income ratio.…”

Section: A Further Assessment Of the Role Of Wealthsupporting

confidence: 75%

“…The theoretical framework adopted to examine the impact of wealth on money demand is similar to that in Fase and Winder (1990, 1993, 1994. The starting point is a traditional demand for money relationship according to which desired money balances not only depend on familiar determinants such as real income, interest rates and inflation, but also on real wealth.…”

Section: Theoretical Framework and Empirical Resultsmentioning

confidence: 99%

“…A first and very preliminary attempt to examine this for The Netherlands is offered in Fase and Winder (1990); the present paper aims to investigate this matter further. As data availibility is still a problem we confine our empirical analysis to Belgium and The Netherlands.…”

Section: Introductionmentioning

confidence: 98%

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Wealth and the demand for money: Empirical evidence for the Netherlands and Belgium

Fase

Winder

1996

De Economist

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Section: Theoretical Framework and Empirical Resultssupporting

confidence: 71%

“…Only for M2 in The Netherlands is the initial effect stronger than the long-run effect. A similar finding for this monetary aggregate was reported in Fase and Winder (1990).…”

Section: M/y% W 1-% Oc F(rk Rl P)supporting

confidence: 84%

Section: A Further Assessment Of the Role Of Wealthsupporting

confidence: 75%

Section: Theoretical Framework and Empirical Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

See 3 more Smart Citations

Wealth and the demand for money: Empirical evidence for the Netherlands and Belgium

Fase

Winder

1996

De Economist

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Measuring Money in the Netherlands

Janssen¹,

Kool²

1996

Essays on Money, Banking, and Regulation

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In search for stability: An empirical appraisal of the demand for money in the G7 and EC countries

Fase

1994

De Economist

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The demand for money has been at the centre of monetary econometrics. The demand for money research focuses on the factors determining money-holding behaviour of the private sector of the economy. Knowledge of this reaction pattern is of great importance for assessing the effectiveness of monetary policy or the impact of monetary or other shocks. However, views on this matter differ widely. On the one hand, there is a general approach, focusing on the monetary climate, which regards monetary ease or tightness as the main driving force without specifying the nature of the underlying transmission process. On the other hand, a more specific approach is discernible, which regards all changes in money-holding behaviour, or, in other words the reaUocation within the range of components of wealth, as the most important channel for spending effects.The demand for money is a well-explored field of monetary econometrics. Against that background and in view of the traditionally ample availability of data to examine the various theoretical views empirically, this is not surprising. Moreover, research on the demand for money conducted in the recent past has been an important source of inspiration for innovations in both monetary theory and econometric technique. This has resulted in an abundant flow of interesting empirical research on the demand for money covering many countries and regions. This survey aims at presenting an inventory and assessing these innovative activities from the viewpoint of monetary policy. It focuses on four aspects in particular. The first is the evolution of the theory of the demand for money, of which a brief survey is presented. The second is a summary of empirical studies carried out since 1970. Because virtually all recent surveys of money demand research -see e.g. , Goldfield and Sichel (1990) or Boughton (1992) -focus primarily on the US, the present survey, following Fase and Kun6 (1974, p. 344-345;1975) for the 1960s and before, broadens the perspective by including the G7 and EC countries in particular. The third aspect concerns the most important theoretical and methodological lessons to be

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The demand for money in the Netherlands revisited

Cited by 16 publications

References 12 publications

Wealth and the demand for money: Empirical evidence for the Netherlands and Belgium

Wealth and the demand for money: Empirical evidence for the Netherlands and Belgium

Measuring Money in the Netherlands

In search for stability: An empirical appraisal of the demand for money in the G7 and EC countries

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