HOUSEHOLD-SECTOR MONEY DEMAND FOR THE UK

HOUSEHOLD-SECTOR MONEY DEMAND FOR THE UK

We test for the existence of a long‐run money demand relationship for the UK involving household‐sector Divisia and simple sum monetary indexes for the period from 1977 to 2008. We construct our Divisia index using non‐break‐adjusted levels and break‐adjusted flows following the Bank of England. We...

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Veröffentlicht in:The Manchester school 2010-09, Vol.78 (s1), p.90-113
Hauptverfasser: BISSOONDEEAL, RAKESH K., JONES, BARRY E., BINNER, JANE M., MULLINEUX, ANDREW W.
Format: Artikel
Sprache:eng
Schlagworte:
Demand
Demand for money
Demand functions
Households
Indexes
Inflation rate
Interest rates
Monetary dynamics
Monetary economics
Monetary growth
Monetary policy
Monetary theory
Money and credit
Money supply
Studies
United Kingdom
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Beschreibung
Zusammenfassung:We test for the existence of a long‐run money demand relationship for the UK involving household‐sector Divisia and simple sum monetary indexes for the period from 1977 to 2008. We construct our Divisia index using non‐break‐adjusted levels and break‐adjusted flows following the Bank of England. We test for cointegration between the real Divisia and simple sum indexes, their corresponding opportunity cost measures, real income and real share prices. Our results support the existence of a long‐run money demand relationship for both the Divisia and simple sum indexes.
ISSN:1463-6786
1467-9957
DOI:10.1111/j.1467-9957.2010.02207.x