TY - JOUR
T1 - Money, interest rates, and risk
AU - Slovin, Myron B.
AU - Sushka, Marie Elizabeth
PY - 1983/9
Y1 - 1983/9
N2 - This paper analyzes the role of the risk in the form of the volatility of open market interest rates as a factor in the demand for money. We demonstrate, using an inventory theoretic model of money demand, that increases in interest rate volatility will increase the demand for money. We then present empirical evidence that the demand for money has been influenced by alterations in the volatility of open market rates using standard specifications of the demand for money.
AB - This paper analyzes the role of the risk in the form of the volatility of open market interest rates as a factor in the demand for money. We demonstrate, using an inventory theoretic model of money demand, that increases in interest rate volatility will increase the demand for money. We then present empirical evidence that the demand for money has been influenced by alterations in the volatility of open market rates using standard specifications of the demand for money.
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U2 - 10.1016/0304-3932(83)90066-1
DO - 10.1016/0304-3932(83)90066-1
M3 - Article
AN - SCOPUS:0041660476
VL - 12
SP - 475
EP - 482
JO - Carnegie-Rochester Confer. Series on Public Policy
JF - Carnegie-Rochester Confer. Series on Public Policy
SN - 0304-3932
IS - 3
ER -