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Open Economies Review

, Volume 3, Issue 3, pp 323–343 | Cite as

International comparisons of money demand

  • James M. Boughton
Review Essay

Abstract

Many studies of the demand for money, covering a wide variety of economies, have demonstrated the importance of financial innovations and shifts in monetary policy regimes, but they have also illustrated the difficulty of measuring and assessing such changes. Because innovations and regime shifts have differed markedly across countries, international comparisons can help identify their effects. This paper reviews the literature on money demand comparisons, focusing primarily on industrial countries. It finds that innovations have had widespread effects, but also that the demand for money is not generally less stable now than it was before those changes occurred.

Key words

money demand comparative studies monetary policy financial innovations cointegration error correction models 

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Copyright information

© Kluwer Academic Publishers 1992

Authors and Affiliations

  • James M. Boughton
    • 1
  1. 1.International Monetary FundWashington, D.C.USA

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