Arbeitspapier
Exchange rate, inflation rate, expectations, and the demand for money: Germany 1970 - 1978
This paper analyses the influence of exchange rate expectations on the demand for real balances. It is shown that currency substitution is an important factor in explaining real money holdings in Germany from 1970 to 1978. Additionally, evidence is provided concerning the influence of the expected inflation rate (approximated by the actual rate) on money demand. The empirical analysis indicates that domestic and foreign bonds are very close substitutes and that domestic and foreign interest rates can be used interchangeably as the opportunity coats of holding real balances. As alternatives to money as a means of holding wealth, domestic goods and bonds are closer substitutes than foreign bonds and money.
- Language
-
Englisch
- Bibliographic citation
-
Series: Diskussionsbeiträge - Serie A ; No. 135
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Loef, Hans-Edi
- Event
-
Veröffentlichung
- (who)
-
Universität Konstanz, Fakultät für Wirtschaftswissenschaften und Statistik
- (where)
-
Konstanz
- (when)
-
1980
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Loef, Hans-Edi
- Universität Konstanz, Fakultät für Wirtschaftswissenschaften und Statistik
Time of origin
- 1980
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