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The long-run demand for money : a Wicksellian approach

Jonung, Lars LU (1979) p.88-102
Abstract
The income velocity of money in several countries such as Sweden, the United States and Great Britain, displays a U-shaped pattern for the last one hundred years. This paper proposes an explanation of this secular behavior based on an extension of Wicksell’s work on velocity emphasizing the influence of institutional changes. The secular fall in velocity in the last half of the 19th century and the first part of the 20th century is regarded as the outcome of a process of monetization encompassing (1) a growing use of money at the expense of a decline in barter and payment in kind, and (2) an increase in the activity of commercial banks with respect to supplying notes and bank deposits to the public. The secular rise in velocity is viewed... (More)
The income velocity of money in several countries such as Sweden, the United States and Great Britain, displays a U-shaped pattern for the last one hundred years. This paper proposes an explanation of this secular behavior based on an extension of Wicksell’s work on velocity emphasizing the influence of institutional changes. The secular fall in velocity in the last half of the 19th century and the first part of the 20th century is regarded as the outcome of a process of monetization encompassing (1) a growing use of money at the expense of a decline in barter and payment in kind, and (2) an increase in the activity of commercial banks with respect to supplying notes and bank deposits to the public. The secular rise in velocity is viewed as the result of two developments, increasing financial sophistication and growing economic security and stability. The explanation suggested here is confronted with some relevant empirical evidence. The paper, being exploratory in character, deals primarily with the Swedish record. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
host publication
The Theoretical Contributions of Knut Wicksell
editor
Strøm, Steinar and Thalberg, Björn
pages
15 pages
publisher
Palgrave Macmillan
external identifiers
  • scopus:85006632111
ISBN
978-1-349-04207-4
978-1-349-04209-8
DOI
10.1007/978-1-349-04207-4_10
language
English
LU publication?
yes
additional info
Export Date: 22 February 2017
id
a691e96b-cf62-4dc9-8c6f-0917c3aebb5b
alternative location
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85006632111&doi=10.1007%2f978-1-349-04207-4&partnerID=40&md5=ca1367a2697b6f7197e288724a19908c
date added to LUP
2017-02-20 11:58:08
date last changed
2025-01-07 07:44:07
@inbook{a691e96b-cf62-4dc9-8c6f-0917c3aebb5b,
  abstract     = {{The income velocity of money in several countries such as Sweden, the United States and Great Britain, displays a U-shaped pattern for the last one hundred years. This paper proposes an explanation of this secular behavior based on an extension of Wicksell’s work on velocity emphasizing the influence of institutional changes. The secular fall in velocity in the last half of the 19th century and the first part of the 20th century is regarded as the outcome of a process of monetization encompassing (1) a growing use of money at the expense of a decline in barter and payment in kind, and (2) an increase in the activity of commercial banks with respect to supplying notes and bank deposits to the public. The secular rise in velocity is viewed as the result of two developments, increasing financial sophistication and growing economic security and stability. The explanation suggested here is confronted with some relevant empirical evidence. The paper, being exploratory in character, deals primarily with the Swedish record.}},
  author       = {{Jonung, Lars}},
  booktitle    = {{The Theoretical Contributions of Knut Wicksell}},
  editor       = {{Strøm, Steinar and Thalberg, Björn}},
  isbn         = {{978-1-349-04207-4}},
  language     = {{eng}},
  pages        = {{88--102}},
  publisher    = {{Palgrave Macmillan}},
  title        = {{The long-run demand for money : a Wicksellian approach}},
  url          = {{http://dx.doi.org/10.1007/978-1-349-04207-4_10}},
  doi          = {{10.1007/978-1-349-04207-4_10}},
  year         = {{1979}},
}