Discussion paper

DP3249 Non-Linear Equilibrium Corection in US Real Money Balances, 1869-1997

Mark Taylor David Peel Lucio Sarno

20 Mar 2002

Several theoretical models of money demand imply non-linear functional forms for the aggregate demand for money characterized by smooth adjustment towards long-run equilibrium. In this Paper, we propose a non-linear equilibrium correction model of US money demand, which is shown to be stable over the sample period from 1869 to 1997.

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Citation

Taylor, M, D Peel and L Sarno (2002), ‘DP3249 Non-Linear Equilibrium Corection in US Real Money Balances, 1869-1997‘, CEPR Discussion Paper No. 3249. CEPR Press, Paris & London. https://cepr.org/publications/dp3249