The Brookings Institution is committed to quality, independence, and impact.
We are supported by a diverse array of funders. In line with our values and policies, each Brookings publication represents the sole views of its author(s).
Research
BPEA | 1976 No. 31976, No. 3
THE RELATION between the demand for money balances and its determinants
is a fundamental building block in most theories of macroeconomic behavior.S ince it is also a critical component in the formulation of
monetary policy, it is not surprising that the money-demand functionh as
been subjected to extensive empirical scrutiny.