Premium
THE VELOCITY OF MONEY: EVIDENCE FOR THE U.K. 1911–1966
Author(s) -
Graves Philip E.
Publication year - 1980
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1980.tb01226.x
Subject(s) - economics , assertion , variety (cybernetics) , demand for money , empirical evidence , velocity of money , econometrics , monetary economics , endogenous money , monetary policy , mathematics , statistics , philosophy , epistemology , computer science , programming language
This paper presents secular evidence on the income velocity of money, exploring the issue of the superiority 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 M 2 balances of .3 to .45 are observed, elasticities much smaller than previously thought.