Inventory-Theoretic Money Demand and Relative Price Dynamics

Material TypeArticleLanguageEnglish
TitleInventory-Theoretic Money Demand and Relative Price Dynamics Author(S)HIROKAZU ISHISE NAO SUDO (Author)
Abstract  We construct a two-goods inventory-theoretic money demand model and find that the model implies, in a monetary contraction, the decline in the prices of low cash-intensity goods, durables, or luxuries outpaces that of high cash-intensity goods, nondurables, or necessities. Using U.S. data, we show that our model’s predictions are consistent with the data. ...Paginationp 299-326
SubjectEconomicsDescriptorsMoney Economics
Journal TitleJournal of Money, Credit, and Banking  
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