#1988-003A "Should Consumer Expenditures be the Scale Variable in Empirical Money Demand Equations?"
by Daniel L. Thornton


Traditionally, real GNP or permanent income or wealth have been the scale variable of choice in empirical money demand equations. Recently, Mankiw and Summers (1986) argue that consumer expenditures are an ideal proxy for permanent income in money demand, and they provide evidence that total consumption expenditures or consumption expenditures on non-durables and services are better scale variables in money demand than current GNP. More...

#1988-002A "Why do Market Interest Rates Respond to Money Announcements?"
by Daniel L. Thornton


A number of studies have attempted to determine why money market interest rates are positively correlated with unanticipated increases in the money stock by examining the response of the foreign exchange and stock markets to money announcements. They report a significant positive relationship between the trade-weighted exchange rate and unanticipated increases in the money stock and a significant negative relationship between unanticipated increases in the money stock and stock prices. More...

PUBLISHED: Journal of International Financial Markets, Institutions and Money, 1991, 1(1), pp. 33-60

#1988-001A "Forecasting Inflation Using Interest Rate and Time-Series Models: Some International Evidence"
by R. W. Hafer, and Scott E. Hein


No abstract provided More...

PUBLISHED: Journal of Business, January 1990 (Part 1 of 2), 63(1), pp. 1-17