IDEAS home Printed from https://ideas.repec.org/p/drm/wpaper/2026-2.html

Towards a Demand for Money Measurement ? Application to the German hyperinflation of the early 1920s

Author

Listed:
  • Georges Prat

Abstract

An accounting measure of the demand for money is deduced from the Allais’ “Fundamental Equation of Monetary Dynamics”. Data from German hyperinflation in the early 1920s illustrate the method we propose. The spread between money supply and money demand is found to be rather moderate but is not white noise. Our approach can be applied to any country and over any period, provided that the aggregate expenditure can be approximated using available data. This new way can help improve the estimation of the money demand function while avoiding arbitrary assumptions about the dynamics of the spread between money supply and money demand.

Suggested Citation

  • Georges Prat, 2026. "Towards a Demand for Money Measurement ? Application to the German hyperinflation of the early 1920s," EconomiX Working Papers 2026-2, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2026-2
    as

    Download full text from publisher

    File URL: https://economix.fr/pdf/dt/2026/WP_EcoX_2026-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Willford Isbell King, 1930. "Banking Transactions as Related to Income," NBER Chapters, in: The National Income and Its Purchasing Power, pages 355-359, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Keywords

      ;
      ;

      JEL classification:

      • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
      • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

      NEP fields

      This paper has been announced in the following NEP Reports:

      Statistics

      Access and download statistics

      Corrections

      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:drm:wpaper:2026-2. See general information about how to correct material in RePEc.

      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.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valerie Mignon The email address of this maintainer does not seem to be valid anymore. Please ask Valerie Mignon to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/modemfr.html .

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

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.