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Journal of Financial and Quantitative Analysis Vol. 14 No. 2 1979

Effects on Purchasing Power Risk on Portfolio Demand for Money

Andrew H. Chen

Abstract

The problem of the portfolio demand for money was first rigorously studied by Tobin [22]. It has been analyzed since then, by Hicks [8] and Arrow [1], among many others. Many interesting results and implications regarding liquidity preference and risk-taking are derived in these studies. However, the effect of purchasing power risk on liquidity preference has been overlooked in these studies.

DOI
10.2307/2330501
Volume
14
Issue
2
Pages
243
Sources
openalex crossref

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