The velocity of money: evidence for the U.K. 1911-1966
This paper presents secular evidence on the income velocity of money balances. Under a variety of specifications and statistical techniques, employed on both traditional and non-traditional variables, the Friedman assertion that money is a superior good is found to lack empirical support. Indeed, income elasticities of demand for M2 balances of .3 to .45 are observed, elasticities much smaller than previously thought.
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- Milton Friedman, 1959.
"The Demand for Money: Some Theoretical and Empirical Results,"
National Bureau of Economic Research, Inc, number frie59-1, September.
- Milton Friedman, 1959. "The Demand for Money: Some Theoretical and Empirical Results," Journal of Political Economy, University of Chicago Press, vol. 67, pages 327.
- Milton Friedman, 1959. "The Demand for Money: Some Theoretical and Empirical Results," NBER Chapters, in: The Demand for Money: Some Theoretical and Empirical Results, pages 1-29 National Bureau of Economic Research, Inc.
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19912, University Library of Munich, Germany.
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19909, University Library of Munich, Germany.
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"New evidence on income and the velocity of money,"
19899, University Library of Munich, Germany.
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