THE MONETARY AGGREGATES AND THE VELOCITY OF MONEY

Abstract

The relationship between a new measure of money, called the Rational Transactional Aggregate (RTA), and economic activity was investigated using annual and quarterly data in selected macroeconomic models from 1973–1990. For prediction purposes, the money demand function including RTA which used lagged output changes and lagged interest rates showed the most promise.

Citation

Camerson, C.W. and Caveny, R. (1991), "THE MONETARY AGGREGATES AND THE VELOCITY OF MONEY", Studies in Economics and Finance, Vol. 14 No. 1, pp. 70-93. https://doi.org/10.1108/eb028700