Lars Jonung
Professor emeritus
The long-run demand for money : a Wicksellian approach
Författare
Redaktör
- Steinar Strøm
- Björn Thalberg
Summary, in English
The income velocity of money in several countries such as Sweden, the United States and Great Britain, displays a U-shaped pattern for the last one hundred years. This paper proposes an explanation of this secular behavior based on an extension of Wicksell’s work on velocity emphasizing the influence of institutional changes. The secular fall in velocity in the last half of the 19th century and the first part of the 20th century is regarded as the outcome of a process of monetization encompassing (1) a growing use of money at the expense of a decline in barter and payment in kind, and (2) an increase in the activity of commercial banks with respect to supplying notes and bank deposits to the public. The secular rise in velocity is viewed as the result of two developments, increasing financial sophistication and growing economic security and stability. The explanation suggested here is confronted with some relevant empirical evidence. The paper, being exploratory in character, deals primarily with the Swedish record.
Avdelning/ar
- Nationalekonomiska institutionen
Publiceringsår
1979
Språk
Engelska
Sidor
88-102
Publikation/Tidskrift/Serie
The Theoretical Contributions of Knut Wicksell
Länkar
Dokumenttyp
Del av eller Kapitel i bok
Förlag
Palgrave Macmillan
Ämne
- Economics
Status
Published
ISBN/ISSN/Övrigt
- ISBN: 978-1-349-04207-4
- ISBN: 978-1-349-04209-8