Money Market Development and the Demand for Money: Some Preliminary Evidence

1971 ◽  
Vol 6 (4) ◽  
pp. 1155
Author(s):  
Bruce C. Cohen
Keyword(s):  
Preliminary Evidence ◽  
Money Market ◽  
Market Development ◽  
Demand For Money

scholarly journals Optimal Combination of Currency Assets and Algorithm Simulation under Exchange Rate Risk

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
Jun Wei
Keyword(s):  
Money Demand ◽  
Dynamic Equilibrium ◽  
Money Market ◽  
Demand Model ◽  
Demand For Money ◽  
Virtual Economy ◽  
The Interest Rate ◽  
Economic Assets ◽  
Social Wealth ◽  
The Impact

The excess money supply did not lead to a rapid rise in the price index, which in turn triggered inflation. In this case, the redetermination of the demand for money is particularly important. At the same time, with the continuous expansion of the capital market and the rapid development of the virtual economy, the virtual economy is gradually deviating from the real economy. When selecting assets, microentities often incorporate virtual economic assets into investment considerations. Therefore, it is necessary to establish a money demand model that considers the impact of virtual economic assets. This paper uses the asset selection of microentities as the microfoundation to establish a money demand model to explain its economic significance. And based on the money demand model established, a dynamic equilibrium model of the money market was established, and the stability of the dynamic equilibrium point of the money market was verified through mathematical deduction. Based on the dynamic equilibrium model of the money market, the impact of money supply was analyzed. In order to verify the correctness of the aforementioned theory, this paper conducts an empirical analysis. Through cointegration analysis and the vector error correction model (VECM model), the correctness and applicability of the established money demand model are verified, and money demand, total social wealth, spreads between expected stock returns and interest rates, and real estate expectations are found. There is a long-term equilibrium relationship between the rate of return and the interest rate. The total amount of social wealth, the expected rate of return on stocks, and the interest rate spread will have an impact on the demand for money in the short term.

Deregulation and the demand for money market mutual funds

1989 ◽  
Vol 11 (2) ◽  
pp. 297-308 ◽  
Author(s):  
Chun H. Lam ◽  
Rajat Deb ◽  
Tom Fomby
Keyword(s):  
Mutual Funds ◽  
Money Market ◽  
Demand For Money ◽  
Money Market Mutual Funds

scholarly journals HICKS’S THEORY OF THE SHORT-TERM RATE OF INTEREST AND THORNTON’S AND HAWTREY’S INFLUENCES

2019 ◽  
Vol 41 (03) ◽  
pp. 393-410
Author(s):  
Lucy Brillant
Keyword(s):  
Money Market ◽  
Early Article ◽  
Short Term ◽  
Market Theory ◽  
Demand For Money ◽  
Monetary Policies ◽  
The 1960S ◽  
Clearing Function

John Richard Hicks proposed an endogenous theory of money from the 1960s until his final book, A Market Theory of Money (1989). He developed a theory of credit and a theory of short-term rates of interest that had been neglected in his earlier writings such as “Mr. Keynes and the ‘Classics’” (1937). In that early article, Hicks concentrated on the market for cash balances and the motives for the demand for money, while leaving aside the money market and the clearing function of banks. In the 1960s, Hicks was largely inspired by Henry Thornton (1802) and Ralph George Hawtrey (1913, 1919). The originality of this paper is to interpret the short-term rates as the price of liquidity and to examine Hicks’s fight against restrictive monetary policies in the 1960s to the 1970s in Britain.

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