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• W2086220743 abstract "The purpose of this paper is to estimate an appropriate broad-money demand function for the United States and to examine its stability after 1987, when the Federal Reserve System began using M2 as a policy guide. Special attention is paid to the model specification, its dynamic structure, and to its cointegration properties. The results from various dynamic error-correction models suggest that: (i) the money demand relationship is stable; (ii) most previously estimated models have undoubtedly misspecified the interest rate variable; (iii) interest-rate variability is another important determinant of real money demand; and (iv) in contrast of previous studies, the long-run scale variable is real GDP, whereas real consumer spending is the short-run scale variable. The sample period examined is 1953:1 to 1991:4." @default.
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• W2086220743 date "1994-10-01" @default.
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• W2086220743 title "Has M2 demand in the USA become unstable? evidence from an error-correction model" @default.
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• W2086220743 doi "https://doi.org/10.1080/00036849400000103" @default.
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