The role of transaction costs and rates of return on the demand deposit decision

Deskripsi

There has developed in recent years a considerable interest in the determination of currency, demand deposit and total money balance demand functions. The last of these. total money holding, follows the long standing interest in the profession in the substitutability of money and non-monetary competing assets. The interest in derivation of demand functions for the components of money demand is, however, a fairly recent develonment. The reason for this is quite clear. With the increased interest in monetary policy as the basic macroeconomic stabilization device, the linkage between the tool of monetary policy, base money, and the proximate target, total money supply, has come under closer scrutiny. Printed Journal