Money,interest rates,and risk |
| |
Authors: | Myron B Slovin Marie Elizabeth Sushka |
| |
Institution: | Georgia Institute of Technology, Atlanta, GA 30332, USA |
| |
Abstract: | This paper analyzes the role of the risk in the form of the volatility of open market interest rates as a factor in the demand for money. We demonstrate, using an inventory theoretic model of money demand, that increases in interest rate volatility will increase the demand for money. We then present empirical evidence that the demand for money has been influenced by alterations in the volatility of open market rates using standard specifications of the demand for money. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|