Institutional change and the velocity of money : A century of evidence
(1997) In Economic Inquiry 35(4). p.710-724- Abstract
- We study common features in the income velocity of money, income, and interest rates for Canada, the U.S., the U.K., Sweden and Norway using annual data from 1870. The recently developed and refined techniques of testing for cointegration are employed.
The evidence suggests there is a unique long-run relationship in velocity but not in income and interest rates. Moreover, we find that only a model which includes institutional change proxies is properly specified. We argue that the evidence is best interpreted in the context of common historical developments in the respective countries' financial systems.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/f018c380-744f-4027-9682-38abac4e9735
- author
- Bordo, Michael D. ; Jonung, Lars LU and Siklos, Pierre L.
- publishing date
- 1997-10
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- E41, N2, O11
- in
- Economic Inquiry
- volume
- 35
- issue
- 4
- pages
- 15 pages
- publisher
- Wiley-Blackwell
- external identifiers
-
- scopus:0031480379
- ISSN
- 1465-7295
- DOI
- 10.1111/j.1465-7295.1997.tb01959.x
- language
- English
- LU publication?
- no
- additional info
- Cited By :12 Export Date: 22 February 2017
- id
- f018c380-744f-4027-9682-38abac4e9735
- date added to LUP
- 2017-02-23 10:37:28
- date last changed
- 2022-03-24 08:38:42
@article{f018c380-744f-4027-9682-38abac4e9735, abstract = {{We study common features in the income velocity of money, income, and interest rates for Canada, the U.S., the U.K., Sweden and Norway using annual data from 1870. The recently developed and refined techniques of testing for cointegration are employed.<br/><br/>The evidence suggests there is a unique long-run relationship in velocity but not in income and interest rates. Moreover, we find that only a model which includes institutional change proxies is properly specified. We argue that the evidence is best interpreted in the context of common historical developments in the respective countries' financial systems.}}, author = {{Bordo, Michael D. and Jonung, Lars and Siklos, Pierre L.}}, issn = {{1465-7295}}, keywords = {{E41; N2; O11}}, language = {{eng}}, number = {{4}}, pages = {{710--724}}, publisher = {{Wiley-Blackwell}}, series = {{Economic Inquiry}}, title = {{Institutional change and the velocity of money : A century of evidence}}, url = {{http://dx.doi.org/10.1111/j.1465-7295.1997.tb01959.x}}, doi = {{10.1111/j.1465-7295.1997.tb01959.x}}, volume = {{35}}, year = {{1997}}, }