Comments on ‘The Demand for Money in Japan, the United Kingdom, West Germany and the USA: An Empirical Study of the Evidence since 1973’ by Herbert Buscher and Stephen F. Frowen

Abstract

At a conference of the American Enterprise Institute on monetary policy a discussant remarked that such a conference ‘would not be complete without at least one paper on the short-run money demand function’ (Hafer, 1985, p. 642). The chapter by Buscher and Frowen confirms this judgement. One has to add that, during the last 15 years, that is since the seminal studies of Goldfeld (1973, 1975), in nearly every issue of nearly every economic journal studies on the specification and estimation of money demand functions have been published and still come out. Thus it seems impossible to comment here on the chapter by dealing with all issues under discussion in the broad literature even when relying on recent surveys, for instance Judd and Scadding (1982), Roley (1985) and Siebke (1987).