scholarly journals Reexamining the term structure of interest rates and the interwar demand for money

1998 ◽  
Vol 22 (2-3) ◽  
pp. 5-12 ◽  
Author(s):  
Christopher F. Baum ◽  
Clifford F. Thies
Keyword(s):  
Interest Rates ◽  
Term Structure ◽  
Demand For Money

scholarly journals The Demand for Money and the Term Structure of Interest Rates

1979 ◽  
Vol 87 (1) ◽  
pp. 109-129 ◽  
Author(s):  
H. Robert Heller ◽  
Mohsin S. Khan
Keyword(s):  
Interest Rates ◽  
Term Structure ◽  
Demand For Money

scholarly journals The Demand for Money and the Term Structure of Interest Rates in Pakistan

1983 ◽  
Vol 22 (2) ◽  
pp. 97-116 ◽  
Author(s):  
Shaheena Nisar ◽  
Naheed Aslam
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Term Structure ◽  
Money Demand ◽  
Demand Function ◽  
Demand For Money ◽  
Money Demand Function ◽  
Time Deposit ◽  
Scale Variable ◽  
Simple Average

Using the term structure of interest rates, and treating measured income as a scale variable, the paper analyses the demand for money in Pakistan. It is found that replacement of simple average interest rate by the term structure of time deposit rates improves the estimates of money demand function. Money demand is found to be sensitive to changes in interest rates and income level. Furthermore, diseconomies of scale are observed in money holdings.

The Demand For Money in Pakistan: Reply (Notes and Comments)

1975 ◽  
Vol 14 (3) ◽  
pp. 370-375
Author(s):  
M. A. Akhtar
Keyword(s):  
Interest Rates ◽  
Money Demand ◽  
Strong Support ◽  
Physical Capital ◽  
Careful Examination ◽  
Demand For Money ◽  
Weak Support ◽  
Complementarity Hypothesis ◽  
The Difference ◽  
The One

I am grateful to Abe, Fry, Min, Vongvipanond, and Yu (hereafter re¬ferred to as AFMVY) [1] for obliging me to reconsider my article [2] on the demand for money in Pakistan. Upon careful examination, I find that the AFMVY results are, in parts, misleading and that, on the whole, they add very little to those provided in my study. Nevertheless, the present exercise as well as the one by AFMVY is useful in that it furnishes us with an opportunity to view some of the fundamental problems involved in an empi¬rical analysis of the demand for money function in Pakistan. Based on their elaborate critique, AFMVY reformulate the two hypo¬theses—the substitution hypothesis and the complementarity hypothesis— underlying my study and provide us with some alternative estimates of the demand for money in Pakistan. Briefly their results, like those in my study, indicate that income and interest rates are important in deter¬mining the demand for money. However, unlike my results, they also suggest that the price variable is a highly significant determinant of the money demand function. Furthermore, while I found only a weak support for the complementarity between money demand and physical capital, the results obtained by AFMVY appear to yield a strong support for that rela¬tionship.1 The difference in results is only a natural consequence of alter¬native specifications of the theory and, therefore, I propose to devote most of this reply to the criticisms raised by AFMVY and the resulting reformulation of the two mypotheses.

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