The Transactions Theory of the Demand for Money: A Reconsideration
Journal of Political Economy
1978
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 (3)
- Pages
- 449-466
- Language
- en
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- Sources
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