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Institutional change and the velocity of money : A century of evidence

Bordo, Michael D.; Jonung, Lars LU and Siklos, Pierre L. (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.
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author
publishing date
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
id
f018c380-744f-4027-9682-38abac4e9735
date added to LUP
2017-02-23 10:37:28
date last changed
2017-08-15 14:01:24
@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},
  keyword      = {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},
  volume       = {35},
  year         = {1997},
}