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The Speculative Demand for Money: An Alternative Approach
Author(s) -
Laumas G. S.
Publication year - 1976
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1976.tb01210.x
Subject(s) - economics , speculative demand , demand for money , monetary economics , demand deposit , endogenous money , quantity theory of money , broad money , demand curve , keynesian economics , moneyness , interest rate , monetary policy , microeconomics
A bstract . The speculative demand for money has occupied an important role in Keynes’ General Theory. Since then it has received only sporadic attention. The lack of sustained interest among specialists in monetary theory is largely due to the fact that the theory, in its original form, has usually failed to survive the empirical tests. In this paper, an attempt is made to estimate the speculative demand for money using the general framework of the “ Efficient Markets Theory. ” The study uses the United States seasonally adjusted monthly data for the period 1952‐72. The results strongly indicate the existence of the speculative demand for money.