Demand for Money in the United States: Stability and Forward-Looking Tests

• Published in: Economies Vol. 12; no. 2; p. 49
• Main Author: Kia, Amir
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 01.02.2024
• Subjects: Consumption; demand for money; European Monetary Union; Expenditures; Fiscal policy; Foreign exchange rates; forward-looking agents; GDP; Government bonds; Gross Domestic Product; Interest rates; Macroeconomics; Monetary policy; Money demand; policy regime changes; Political aspects; stability; United States economic conditions; Variables; United States; United States > US; India

This study shows that demand for money is a function not only of interest rate, real exchange rate, and personal consumption but also of fiscal variables like deficit, debt, and foreign-financed debt. It is stable over the short and long run. This study also covers the investigation of policy invari...