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Lars Jonung. Photo.

Lars Jonung

Professor emeritus

Lars Jonung. Photo.

Institutional change and the velocity of money : A century of evidence

Author

  • Michael D. Bordo
  • Lars Jonung
  • Pierre L. Siklos

Summary, in English

We study common features in the income velocity of money, income, and interest rates for Canada, the U.S., the U.K., Sweden and Norway using annual data from 1870. The recently developed and refined techniques of testing for cointegration are employed.

The evidence suggests there is a unique long-run relationship in velocity but not in income and interest rates. Moreover, we find that only a model which includes institutional change proxies is properly specified. We argue that the evidence is best interpreted in the context of common historical developments in the respective countries' financial systems.

Publishing year

1997-10

Language

English

Pages

710-724

Publication/Series

Economic Inquiry

Volume

35

Issue

4

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economic History

Keywords

  • E41
  • N2
  • O11

Status

Published

ISBN/ISSN/Other

  • ISSN: 1465-7295