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THE RATCHET EFFECT IN MONEY DEMAND
Author(s) -
Hosek William R.
Publication year - 1977
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1977.tb00560.x
Subject(s) - economics , ratchet effect , monetary economics , demand for money , demand deposit , velocity of money , relative price , broad money , keynesian economics , macroeconomics , microeconomics , endogenous money , exchange rate , ratchet , monetary policy , management , chaotic
This paper explores the response of money demand to relative changes in income using U.S. quarterly data for the period 1948–1970. We find that exchange media and time deposits differ in their response to relative changes in income with implications for the inclusion of time deposits in the definition of money.