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Some further results on the source of shift in M1 demand in the 1980s

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  • Yash P. Mehra

Abstract

What caused the observed shift of M1 demand in the 1980s? Rival candidate explanations stress (1) M1 growth volatility, (2) disinflation, (3) rising real value of stocks, (4) rising volume of financial transactions, (5) rising household financial wealth, and (6) introduction into M1 of interest-bearing checkable deposits. The evidence presented here supports item six only.

Suggested Citation

  • Yash P. Mehra, 1989. "Some further results on the source of shift in M1 demand in the 1980s," Economic Review, Federal Reserve Bank of Richmond, vol. 75(Sep), pages 3-13.
    • Handle: RePEc:fip:fedrer:y:1989:i:sep:p:3-13:n:v.75no.5
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    References listed on IDEAS

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    6. John A. Tatom, 1983. "Was the 1982 velocity decline unusual?," Review, Federal Reserve Bank of St. Louis, vol. 65(Aug), pages 5-15.
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    Cited by:

    1. Darrat, Ali F. & Al-Sowaidi, Saif S., 2009. "Financial progress and the stability of long-run money demand: Implications for the conduct of monetary policy in emerging economies," Review of Financial Economics, Elsevier, vol. 18(3), pages 124-131, August.
    2. Bennett T. McCallum, 1993. "Unit roots in macroeconomic time series: some critical issues," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 13-44.

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