The Stability of the Demand for Money in the Interwar Years: The Case of Norway, 1925-39
Pengarang:
Klovland, Jan Tore -
Deskripsi
The study addresses a key debate in macroeconomics: whether the relationship between the quantity of money demanded and its determinants (like income and interest rates) broke down during the economic turmoil of the 1930s, a belief that contributed to the dismissal of monetary policy's efficacy in early postwar years. The author concludes that the demand for money in Norway was stable, suggesting that an expansionary monetary policy could have been a viable tool to counteract the Great Depression.