Journal of Political Economy Vol. 86 No. 3 1978
The Transactions Theory of the Demand for Money: A Reconsideration
Abstract
This paper deals with a class of models of the demand for money that includes the Baumol-Tobin and other inventory-theoretic models as special cases. Among other things, the analysis shows that many supposedly robust comparative-statics propositions derived by earlier writers do not survive even modest generalization. More generally, the results of the paper strongly reinforce other recent research in indicating the need for a wholesale reconstruction of the microfoundations of contemporary monetary theory.
- DOI
- 10.1086/260681
- Volume
- 86
- Issue
- 3
- Pages
- 449-466
- Language
- en
- Sources
- openalex crossref