Some Problems of Money Demand

Jared J. Enzler,

JJE

Jared J. Enzler Staff, Board of Governors of the Federal Reserve System

John Paulus, and

JP

John Paulus Staff, Board of Governors of the Federal Reserve System

Lewis Johnson

LJ

Lewis Johnson Staff, Board of Governors of the Federal Reserve System

THE CURRENT ECONOMIC upturn has been characterized by unusually low
rates of money growth relative to the increase in nominal gross national
product. Even more surprising, the unusual rise in velocity has occurred
while short-term interest rates have remained largely unchanged or even
fallen slightly (see table 1).