Long-Run Money Demand in Large Industrial Countries

Boughton, James M.

doi:10.2307/3867033

Cited by 65 publications

(21 citation statements)

References 17 publications

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“…These coefficients are therefore semi-elasticities. Following, for example, Den Butter and Fase ( 1981) and a recent study by Boughton (1991), the usual assumption of a price elasticity of 1 -i.e. price homogeneity of order 1 -is not made a priori, but considered as a testable hypothesis.…”

Section: Theoretical Basismentioning

confidence: 98%

The demand for money in the Netherlands and the other EC countries

Fase

Winder

1993

De Economist

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Section: Theoretical Basismentioning

confidence: 98%

The demand for money in the Netherlands and the other EC countries

Fase

Winder

1993

De Economist

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“…However, from the early 1980s onwards, faith in this link had been increasingly shaken by the widespread and growing empirical observation that velocity had become erratic, was declining significantly and the money demand function was unstable (e.g. Hendry, 1985;Belongia and Chalfant, 1990;Boughton, 1991). The 'quantity equation' relationship, expressed as a stable income velocity, "came apart at the seams during the course of the 1980s" (Goodhart, 1989).…”

Section: The Velocity Decline and The Inability To Define Moneymentioning

confidence: 99%

“…It has been described as a world-wide "puzzling" anomaly (Belongia and Chalfant, 1990). Once "viewed as a pillar of macroeconomic models", the quantity equation "is now … one of the weakest stones in the foundation" (Boughton, 1991). As a result, economists could not identify a reliable relationship between a monetary aggregate and nominal GDP.…”

Section: The Velocity Decline and The Inability To Define Moneymentioning

confidence: 99%

Towards a new research programme on ‘banking and the economy’ — Implications of the Quantity Theory of Credit for the prevention and resolution of banking and debt crises

Werner

2012

International Review of Financial Analysis

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Abstract. The financial crisis has triggered a new consensus among economists that it is necessary to include a banking sector in macroeconomic models. It is also necessary for the finance and banking literature to consider how best to incorporate systemic, macroeconomic feedbacks into its modeling of financial intermediation. Thus a new research programme on the link between banking and the economy is needed. This special issue is devoted to this theme. In this paper an overview of the issues and problems in the economics and finance literature is presented, and a concrete, simple approach is identified of how to incorporate banks into a macroeconomic model that solves many of these issues. The model distinguishes between the type of credit that boosts GDP and credit that is associated with asset prices and banking crises. The model is consistent with the empirical record. Some applications are discussed, namely the prediction and prevention of banking crises, implications for fiscal policy, and a solution to the European sovereign debt crisis that stimulates growth while avoiding the corner solutions of euro exit or fiscal union.

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“…The ratio moved from 30. 4 In summary, from the analysis above it is evident that there is relatively a low level of deepening of the financial market in Nigeria during the period of the study.…”

Section: Analysis Of Trends In Financial Deepening Between 1965-2010mentioning

confidence: 99%

Relationship between Sustainable Financial Services and Poverty Reduction in Nigeria - Evidence from Error Correction Model

Muritala

Fasanya

2013

ILSHS

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The inflexibility of poverty is being met with increasing impatience from governments of diverse ideologies, donors and other international agencies. Recent data compilations show that many poor and non-poor people in many developing countries face a high degree of financial exclusion and high barriers in access to finance. Therefore, financial inclusion plays a critical role in reducing poverty. Hence, this paper examines the relationship between sustainable financial services and poverty reduction in Nigeria from 1965 -2010 using Error Correction Model (ECM). It was observed that total value prime lending rate, financial savings, credit to private sector and rate of inflation all have significant impact on the financial deepening. In the final analysis, the study concludes that financial inclusion tends to strengthen financial deepening and provide resources to the banks to expand credit delivery thereby leading to financial development. The study therefore recommends that these findings, in turn, will inform the policy makers and stakeholders to build more inclusive financial systems.

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Long-Run Money Demand in Large Industrial Countries

Cited by 65 publications

References 17 publications

The demand for money in the Netherlands and the other EC countries

The demand for money in the Netherlands and the other EC countries

Towards a new research programme on ‘banking and the economy’ — Implications of the Quantity Theory of Credit for the prevention and resolution of banking and debt crises

Relationship between Sustainable Financial Services and Poverty Reduction in Nigeria - Evidence from Error Correction Model

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