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The Long Run Behavior of the Income Velocity of Money in Five Advanced Countries, 1870-1976 : An Institutional Approach

Bordo, Michael David and Jonung, Lars LU (1981) In Economic Inquiry 19(1). p.96-116
Abstract
The income velocity of money in Canada, the United States, Great Britain, Norway and Sweden displays a U-shaped pattern over the last one hundred years. This paper presents and tests empirically an explanation for this secular pattern emphasizing the influence on velocity of institutional changes. The inclusion into a simple velocity function of institutional developments such as the process of monetization, the spread of commercial banking, financial development and the growth of economic stability improves the explanation of long-run movements in velocity provided by a regression of velocity on real permanent income per head and the interest rate.
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Economic Inquiry
volume
19
issue
1
pages
21 pages
publisher
Wiley-Blackwell
external identifiers
  • scopus:85005376823
ISSN
1465-7295
DOI
10.1111/j.1465-7295.1981.tb00605.x
language
English
LU publication?
yes
id
00cf1fef-f4c9-47f1-949e-46e56fe91704
alternative location
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85005376823&doi=10.1111%2fj.1465-7295.1981.tb00605.x&partnerID=40&md5=6d3e135a8b7414c4557a224ca8cfafa3
date added to LUP
2017-02-23 10:55:49
date last changed
2017-05-14 04:48:39
@article{00cf1fef-f4c9-47f1-949e-46e56fe91704,
  abstract     = {The income velocity of money in Canada, the United States, Great Britain, Norway and Sweden displays a U-shaped pattern over the last one hundred years. This paper presents and tests empirically an explanation for this secular pattern emphasizing the influence on velocity of institutional changes. The inclusion into a simple velocity function of institutional developments such as the process of monetization, the spread of commercial banking, financial development and the growth of economic stability improves the explanation of long-run movements in velocity provided by a regression of velocity on real permanent income per head and the interest rate.<br/>},
  author       = {Bordo, Michael David and Jonung, Lars},
  issn         = {1465-7295},
  language     = {eng},
  number       = {1},
  pages        = {96--116},
  publisher    = {Wiley-Blackwell},
  series       = {Economic Inquiry},
  title        = {The Long Run Behavior of the Income Velocity of Money in Five Advanced Countries, 1870-1976 : An Institutional Approach},
  url          = {http://dx.doi.org/10.1111/j.1465-7295.1981.tb00605.x},
  volume       = {19},
  year         = {1981},
}