International Shifts in the demand for money in a small monetarist model

Arbeitspapier

At the latest since 1978, international shifts in the demand for money have widely been recognized as a major problem for monetary-policy making under flexible exchange rates. To the extent that such shifts are unpredictable, the case for monetary preannouncement is weakened (Giersch, 1977; Girton, Roper, 1978; Sachverständigenrat, 1978/9; Vaubel, 1980). To the extent that they are unidentifiable once they occur, the case for flexible exchange rates is weakened (Giersch, 1977; King et al., 1977; Sachverständigenrat, 1978/9; Vaubel, 1980). Empirical identification of international shifts in the demand for money (or, what is the same, of currency substitution in demand) has been attempted though estimation of money-demand functions and exchange-rate functions. Concentrating on international stock shifts in the demand for money rather than on portfolio-growth effects (which are likely to be far less volatile), most researchers used the forward premium/discount or, what is approximately the same, the international interest- rate differential as the most promising determinant of currency substitution; for these variables reflect the expected difference in the opportunity cost of holding the monies concerned if interest is not paid on money balances or on required reserves.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Year: 1981 ; Kiel: Institut für Weltwirtschaft (IfW)

Klassifikation und Themen

• Klassifikation: Wirtschaft

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Gutierrez-Camara, J.L. ; Vaubel, Roland
• Ereignis: Veröffentlichung
• (wer): Kiel Institute of World Economics (IfW) ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (wo): Kiel
• (wann): 1981

Weitere Informationen

• Handle: http://hdl.handle.net/10419/46934
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ