The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Demand for Money: Empirical Studies

  • Stephen M. Goldfeld
Reference work entry


The relation between the demand for money balances and its determinants is a fundamental building block in most theories of macroeconomic behaviour and is a critical component in the formulation of monetary policy. Indeed, a stable demand function for money has long been perceived as a prerequisite for the use of monetary aggregates in the conduct of policy. Not surprisingly, then, the demand for money has been subjected to extensive empirical scrutiny.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Stephen M. Goldfeld
    • 1
  1. 1.