The Demand for Money Revisited

Goldfeld, Stephen M.; Duesenberry, James S.; Poole, William

doi:10.2307/2534203

Cited by 591 publications

(231 citation statements)

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“…Indeed, most empirical work in money demand estimation has adopted income rather than consumption as a scale variable. Classical examples include Friedman (1959) and Goldfeld (1973Goldfeld ( , 1976. This may explain why CIA constraints on both consumption and investment are widely used in the theoretical monetary literature, such as Stockman (1981), Abel (1985) and Fuerst (1992), to name just a few.…”

Section: Introductionmentioning

confidence: 99%

Another look at sticky prices and output persistence

Wang

Wen

2006

Journal of Economic Dynamics and Control

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Price rigidity is the key mechanism for propagating business cycles in traditional Keynesian theory. Yet the New Keynesian literature has failed to show that sticky prices by themselves can e¤ectively propagate business cycles in general equilibrium. We show that price rigidity in fact can (by itself) give rise to a strong propagation mechanism of the business cycle in standard New Keynesian models, provided that investment is also subject to a cash-in-advance constraint.In particular, we show that reasonable price stickiness can generate highly persistent, humpshaped movements in output, investment and employment in response to either monetary or non-monetary shocks, even if investment is only partially cash-in-advance constrained. Hence, whether or not price rigidity is responsible for output persistence (and the business cycle in general) may not be a theoretical question, but an empirical one.

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Section: Introductionmentioning

confidence: 99%

Another look at sticky prices and output persistence

Wang

Wen

2006

Journal of Economic Dynamics and Control

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“…Os parâmetros que definem a elasticidade consumo da demanda de moeda, a, e o inverso da elasticidade juros da demanda de moeda, b, foram obtidos a partir da especificação utilizada por Goldfeld & Sichel (1990) e Chari et al (1990):…”

Section: Calibração E Valores Dos Parâmetrosunclassified

Choques monetários e tecnológicos e as flutuações cíclicas na economia brasileira

Filho¹,

Vieira²,

Divino³

et al. 2012

Econ. Apl.

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ResumoInvestigou-se a importância relativa dos choques tecnológicos e monetários nos ciclos de negócios da economia brasileira entre 1980 e 2009. Nesta investigação, utilizou-se o modelo money-in-the-utility function, que considera que a moeda e sua manutenção geram utilidade aos agentes econômicos. Para identificar a forma e o padrão de como os ciclos de negócios respondem aos choques, foram realizadas diversas simulações. Os resultados permitem concluir que, além dos choques tecnológicos, os choques monetários foram importantes na explicação dos ciclos de negó-cios da economia brasileira no período analisado, embora o efeito sobre a volatilidade das variáveis reais tenha sido pequeno.Palavras-chave: Ciclos de negócios; Choque monetários e tecnológicos; Economia brasileira. AbstractWe investigated the relative importance of technological and monetary shocks for the business cycles in the Brazilian economy between 1980 and 2009. In this investigation, we used the model money-in-the-utility function, which considers that holding money generates utility to the economic agents. Several simulations were performed to identify how the business cycles respond to shocks. The results indicate that, in addition to technological shocks, monetary shocks are important in explaining business cycles in the Brazilian economy during the analyzed period. Their effects on the volatility of real variables, however, were small.

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“…The next two models use the variables often seen in the literature. The traditional closed-economy money demand function [e.g., Goldfeld (1973Goldfeld ( , 1976 and Judd and Scadding (1982)] and the open-economy money demand function [e.g., Arango and Nadiri (1981) and Hueng (1998) where y t is aggregate real GDP at 1986 prices, m' t is aggregate real M1, and 8's are the normalized cointegrating coefficients, which are to be estimated by the Engle-Granger two-step estimations. The closedeconomy error-correction model has been used in Baum andFurno (1990), Miller (1991), and Mehra (1993).…”

Section: The Modelsmentioning

confidence: 99%

“…Previous studies, however, have often been restricted to a closed economy framework [e.g., Goldfeld (1973Goldfeld ( , 1976 and Judd and Scadding (1982)]. In view of the increasing integration of world financial markets, one would intuitively expect foreign monetary developments, through their effects on foreign interest rates and/or exchange rates, to influence holding of domestic money because the portfolio choices of individuals will in this case involve not only domestic money and domestic bonds but also foreign assets.…”

Section: Introductionmentioning

confidence: 99%

Money demand in an open-economy shopping-time model: an out-of-sample-prediction application to Canada

Hueng

1999

Journal of Economics and Business

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The Demand for Money Revisited

Cited by 591 publications

References 0 publications

Another look at sticky prices and output persistence

Another look at sticky prices and output persistence

Choques monetários e tecnológicos e as flutuações cíclicas na economia brasileira

Money demand in an open-economy shopping-time model: an out-of-sample-prediction application to Canada

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