A Revealed Preference Analysis of Friedman and Schwartz Money
In their seminal series of books Friedman and Schwartz concluded that the appropriate assets to aggregate into money are currency, demand deposits and time deposits issued by commercial banks. For this paper I used revealed preference analysis to test the validity of this conclusion. I find that these financial assets pass tests for the existence of a monetary aggregate consistent with the economic theory of aggregation over goods. For a short period after World War II, the data are consistent with a more broadly defined monetary aggregate. A reputable index number like the Divisia index must be employed to form these assets into an aggregate consistent with the economic theory of aggregation. Copyright 1995 by Ohio State University Press.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 27 (1995)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879|
When requesting a correction, please mention this item's handle: RePEc:mcb:jmoncb:v:27:y:1995:i:1:p:154-64. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.