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Douglas Fisher surveys and extends the literature on the demand for money. The survey covers the recent literature on the definition of money and on money demand, from the early 1970s to date. Fishers own extensions involve original work on flexible functional forms, rational expectations, velocity, and the value of time as these involve the specification or estimation of demand for money. These are supported with original empirical investigations of these topics.One of the major reasons for studying the demand for money relates to its key role in the design of monetary policy. Essentially, this involves a formal statement of money supply theory as it currently stands, as well as an integration of the two literatures. Topics studied here include wealth and real balance effects, monetary neutrality (and policy effectiveness), money supply theory, and both the macroeconomic and microeconomic theories of banking. This book will be essential reading for students and scholars of monetary and financial economics.
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