The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Lars Jonung. Photo.

Lars Jonung

Professor emeritus

Lars Jonung. Photo.

The Long Run Behavior of the Income Velocity of Money in Five Advanced Countries, 1870-1976 : An Institutional Approach

Author

  • Michael David Bordo
  • Lars Jonung

Summary, in English

The income velocity of money in Canada, the United States, Great Britain, Norway and Sweden displays a U-shaped pattern over the last one hundred years. This paper presents and tests empirically an explanation for this secular pattern emphasizing the influence on velocity of institutional changes. The inclusion into a simple velocity function of institutional developments such as the process of monetization, the spread of commercial banking, financial development and the growth of economic stability improves the explanation of long-run movements in velocity provided by a regression of velocity on real permanent income per head and the interest rate.

Department/s

  • Department of Economics

Publishing year

1981-01

Language

English

Pages

96-116

Publication/Series

Economic Inquiry

Volume

19

Issue

1

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economic History

Status

Published

ISBN/ISSN/Other

  • ISSN: 1465-7295