Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/66299
Authors: 
Brüggemann, Imke
Nautz, Dieter
Year of Publication: 
1997
Series/Report no.: 
Discussion Papers, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes 1997,23
Abstract: 
Recently, the Bundesbank claimed that monetary targeting has become considerably more diffcult by the increased volatility of short-term money growth. The present paper investigates the impact of German money growth volatility on income velocity and money demand in view of Friedman's money growth volatility hypothesis. Granger-causality tests provide some evidence for a velocity-volatility linkage. However the estimation of volatility-augmented money demand functions reveals that - in contrast to Friedman's hypothesis - increased money growth volatility lowered the demand for money.
Subjects: 
ARCH models
Money growth volatility
demand for money
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
231.15 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.