Review

This article provides a critical review of the existing evidence on the issue of the temporal stability of the money demand relationship. Various money demand specifications are examined in terms of their dynamic out-of-sample predictive ability over the post-1972 period and more formally through the use of the Brown-Durbin-Evans cusum-squares tests. 

Food prices are projected by the U.S. Department of Agriculture to increase by about 8 percent for 1980. This is well below both the 11 percent increase in 1979 and the overall rate of inflation projected by most analysts for 1980.