TY  - BOOK
AU  - Carr,Jack
AU  - Darby,Michael R.
ED  - National Bureau of Economic Research.
TI  - The Role of Money Supply Shocks in the Short-Run Demand for Money
T2  - NBER working paper series
PY  - 1980///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - July 1980; Hardcopy version available to institutional subscribers
N2  - Previous models of the demand for money are either inconsistent with contemporaneous adjustment of the price level to expected changes in the nominal money supply or imply implausible fluctuations in interest rates in response to unexpected changes in the nominal money supply. This paper proposes a shock-absorber model of money demand in which money supply shocks affect the synchronization of purchases and sales of assets and so engender a temporary desire to hold more or less money than would otherwise be the case. Expected changes in nominal money do not cause fluctuations in real money inventories. The model is simultaneously estimated for the United States, United Kingdom, Canada, France, Germany, Italy, Japan, and the Netherlands using the postwar quarterly data set and instruments used in the Mark III International Transmission Model. The shock-absorber variables significantly improve the estimated short-run money demand functions in every case
UR  - https://www.nber.org/papers/w0524
UR  - http://dx.doi.org/10.3386/w0524
ER  -