PL EN


2006 | 2 | 145-168
Article title

Interest Rate and the Money Demand Function (Can the Paradigm Be Changed?)

Title variants
Languages of publication
PL
Abstracts
EN
The prevailing theoretical paradigm stipulating that demand for money negatively depends on nominal interest rate is in sharp contradiction with real monetary policy. It also leads to inconsistencies. The choice of the nominal rate of interest as the argument of money demand function determines the results of some known models - should they link demand for money to the real interest rate, the results would be different. These observations lead to reconsideration of the established theoretical reasoning concerning the motifs of monetary policies. Following these considerations a new paradigm linking interest rate and the demand for money is offered. The inference is that it is the real interest rate that plays crucial role in the determination of demand for money and that this relation is quite complex.
Year
Issue
2
Pages
145-168
Physical description
Document type
ARTICLE
Contributors
  • A. K. Koronowski, Uniwersytet Warszawski, Wydzial Nauk Ekonomicznych, ul. Dluga 44/50, 00-241 Warszawa, Poland
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
06PLAAAA01433160
YADDA identifier
bwmeta1.element.094672b6-4427-383b-ae89-4fbf2111a230
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