The Effect of Term Structure of Interest Rates on the Demand for Money in the United States

1982 ◽  
Vol 90 (1) ◽  
pp. 201-212 ◽  
Author(s):  
Milton Friedman ◽  
Anna J. Schwartz
Keyword(s):  
United States ◽  
Interest Rates ◽  
Term Structure ◽  
The United States ◽  
Demand For Money

Dampak perbedaan suku bunga terhadap permintaan uang: Kasus Amerika Serikat dan Indonesia

2019 ◽  
Vol 16 (2) ◽  
pp. 56-62
Author(s):  
Dina Marlina ◽  
Sri Andaiyani ◽  
Dedi Hartawan
Keyword(s):  
United States ◽  
Interest Rates ◽  
Money Demand ◽  
The United States ◽  
Dynamic Impact ◽  
Demand For Money ◽  
Auto Regressive ◽  
Us Dollar ◽  
The Difference ◽  
Financial Dollarization

This study aims to look at the demand for money in Indonesia 2010Q1-2017Q4. In this research using the VAR (Vector Auto Regressive) model. This study attempts to predict time series variables and on the dynamic impact of analysis of disturbance factors in each variable and assesses the interrelationships between variables using the program Eviews 9.0. In this study, researchers tried to test Frriedman's theory by focusing on the difference between Indonesian interest rates and US interest rates. The important thing is, this study argues that the differential US dollar interest coefficient from the money demand function can describe financial dollarization in Indonesia. Indonesia is trying to keep capital flows out of other countries, especially the United States by keeping interest rates higher than the United States. This means that the higher interest rate differentials between Indonesia and the United States will make more capital inflow to Indonesia, so will make higher demand for money in Indonesia. The results show that all variables used in this study are stationary at first difference and have the appropriate model in lag 5

Inflation Inequality: Measurement, Causes, and Policy Implications

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Xavier Jaravel
Keyword(s):  
United States ◽  
Income Distribution ◽  
Interest Rates ◽  
Optimal Taxation ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
The United States ◽  
Policy Implications ◽  
Annual Review ◽  
Publication Date

Does inflation vary across the income distribution? This article reviews the growing literature on inflation inequality, describing recent advances and opportunities for further research in four areas. First, new price index theory facilitates the study of inflation inequality. Second, new data show that inflation rates decline with household income in the United States. Accurate measurement requires granular price and expenditure data because of aggregation bias. Third, new evidence quantifies the impacts of innovation and trade on inflation inequality. Contrary to common wisdom, empirical estimates show that the direction of innovation is a significant driver of inflation inequality in the United States, whereas trade has similar price effects across the income distribution. Fourth, inflation inequality and non-homotheticities have important policy implications. They transform cost-benefit analysis, optimal taxation, the effectiveness of stabilization policies, and our understanding of secular macroeconomic trends—including structural change, the decline in the labor share and interest rates, and labor market polarization. Expected final online publication date for the Annual Review of Economics, Volume 13 is August 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

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