Money growth volatility and the demand for money in Germany: Friedman's volatility hypothesis revisited

Arbeitspapier

Recently, the Bundesbank claimed that monetary targeting has become considerably more diffcult by the increased volatility of short-term money growth. The present paper investigates the impact of German money growth volatility on income velocity and money demand in view of Friedman's money growth volatility hypothesis. Granger-causality tests provide some evidence for a velocity-volatility linkage. However the estimation of volatility-augmented money demand functions reveals that - in contrast to Friedman's hypothesis - increased money growth volatility lowered the demand for money.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: SFB 373 Discussion Paper ; No. 1997,23

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: ARCH models ; Money growth volatility ; demand for money

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Brüggemann, Imke ; Nautz, Dieter
• Ereignis: Veröffentlichung
• (wer): Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes
• (wo): Berlin
• (wann): 1997

Weitere Informationen

• Handle: http://hdl.handle.net/10419/66299
• URN: urn:nbn:de:kobv:11-10064097
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ