La domanda di moneta in Germania Federale, nel periodo 1971-1981

A portfolio-balance model is applied to nominal demand for money (M1, M2 and M3) and empirically tested for West Germany, 1971.I - 1981.IV. Some major hypotheses about the different time-space domain covered by money aggregates are considered, such as the a8set versus transactions purpose, the impact of foreign financial markets and the structural stability issue. Empirical findings widely support the contention that the larger the money aggregate the wider the time-space domain: hence, M2 and M3, as opposed to M1, are significantly related to permanent income, are direct substitutes of durable goods, and are somehow affected by changes in International financial markets. Also, the average adjustment period tends to infinity when passing from M1 to M2. It is concluded, by finding f or all aggregates no foreign-bonds substitutability and no structural instability, that domestic monetary policy is fairly effective in pursuing stabilization objectives either through stock or interest rate instruments.