U. S. Money Demand: Surprising Cross-Sectional Estimates

Casey B. Mulligan and Xavier Sala-I-Martin

Discussants: N. Gregory Mankiw and Julio J. Rotemberg

1992, No. 2

THE SPECIFICATION of the money demand function has important implications for a number of macroeconomic issues. First, if policymakers are to be responsible for achieving price stability, they need reliable quantitative estimates of money demand. In particular, if the money demand function is stable, the income elasticity yields the rate of money growth that is consistent with long-run price stability.

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U. S. Money Demand: Surprising Cross-Sectional Estimates

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U. S. Money Demand: Surprising Cross-Sectional Estimates

Casey B. Mulligan and CBM Casey B. Mulligan University of Chicago Xavier Sala-I-Martin XS Xavier Sala-I-Martin Yale University Discussants: N. Gregory Mankiw and N. Gregory Mankiw Robert M. Beren Professor of Economics - Harvard University Julio J. Rotemberg JJR Julio J. Rotemberg

Casey B. Mulligan and Xavier Sala-I-Martin

Discussants: N. Gregory Mankiw and Julio J. Rotemberg