IDEAS home Printed from
   My bibliography  Save this article

An Econometric and Historical Perspective on the Long-Run Stability of the Demand for Money: The Case of Italy


  • Vito Antonio Muscatelli

    () (University of Glasgow, Uk)

  • Franco Spinelli

    (University of Brescia)


This paper investigates the stability of the demand for money in Italy using a new data set for the period 1861-1990. We discuss how institutional and other historical factors may have shaped monetary history and how, despite major shifts in policy and a turbulent economic background, there seems to be considerable evidence in support of a stable demand for money relationship. We place our results in the wider context of the debate on the institutionalist view of velocity changes, and the debate on the stability of the demand for money in other countries such as the UK and the US.

Suggested Citation

  • Vito Antonio Muscatelli & Franco Spinelli, 1997. "An Econometric and Historical Perspective on the Long-Run Stability of the Demand for Money: The Case of Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 56(1-2), pages 41-65, June.
  • Handle: RePEc:gde:journl:gde_v56_n1-2_p41-65

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    1. Allison C Schrager & George A Mackenzie, 2004. "Can the Private Annuity Market Provide Secure Retirement Income?," IMF Working Papers 04/230, International Monetary Fund.
    2. Carlo Mazzaferro & Marcello Morciano, 2011. "Measuring intra-generational and inter-generational redistribution in the reformed Italian social security system," Working Papers 11, Department of the Treasury, Ministry of the Economy and of Finance.
    3. Giuseppe Carone & Herwig Immervoll & Dominique Paturot & Aino Salomäki, 2004. "Indicators of Unemployment and Low-Wage Traps: Marginal Effective Tax Rates on Employment Incomes," OECD Social, Employment and Migration Working Papers 18, OECD Publishing.
    4. Chłoń-Domińczak, Agnieszka & Strzelecki, Paweł, 2013. "The minimum pension as an instrument of poverty protection in the defined contribution pension system – an example of Poland," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(03), pages 326-350, July.
    5. Carlo Mazzaferro & Marcello Morciano, 2008. "CAPP_DYN: A Dynamic Microsimulation Model for the Italian Social Security System," Department of Economics 0595, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    6. Cannon, Edmund & Tonks, Ian, 2003. "UK annuity rates and pension replacement ratios 1957-2002," LSE Research Online Documents on Economics 24832, London School of Economics and Political Science, LSE Library.
    7. Monika Queisser & Edward R. Whitehouse, 2006. "Neutral or Fair?: Actuarial Concepts and Pension-System Design," OECD Social, Employment and Migration Working Papers 40, OECD Publishing.
    8. Mazzaferro, Carlo & Morciano, Marcello & Savegnago, Marco, 2012. "Differential mortality and redistribution in the Italian notional defined contribution system," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(04), pages 500-530, October.
    9. repec:mod:cappmo:0035 is not listed on IDEAS
    10. Giovanni Guazzarotti & Pietro Tommasino, 2008. "The Annuity Market in an Evolving Pension System: Lessons from Italy," CeRP Working Papers 77, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    11. Baldini Massimo & Mazzaferro Carlo & Morciano Marcello, 2008. "Assessing the implications of long-term care policies in Italy: a microsimulation approach," Politica economica, Società editrice il Mulino, issue 1, pages 47-72.
    12. Edward R. Whitehouse, 2010. "Decomposing Notional Defined-Contribution Pensions: Experience of OECD Countries' Reforms," OECD Social, Employment and Migration Working Papers 109, OECD Publishing.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Vittorio Daniele & Pasquale Foresti & Oreste Napolitano, 2017. "The stability of money demand in the long-run: Italy 1861–2011," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(2), pages 217-244, May.
    2. Federico Barbiellini Amidei & Riccardo De Bonis & Miria Rocchelli & Alessandra Salvio & Massimiliano Stacchini, 2016. "Monetary aggregates in Italy since 1861: evidence from a new dataset," Questioni di Economia e Finanza (Occasional Papers) 328, Bank of Italy, Economic Research and International Relations Area.

    More about this item


    demand for money; Italian monetary history; long-run velocity; non-linear adjustment; money supply shocks;

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gde:journl:gde_v56_n1-2_p41-65. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erika Somma). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.