Money, interest rates, and risk

Myron B. Slovin, Marie Sushka

Research output: Contribution to journalArticle

14 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)475-482
Number of pages8
JournalJournal of Monetary Economics
Volume12
Issue number3
DOIs
StatePublished - 1983
Externally publishedYes

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Interest rates
Demand for money
Empirical evidence
Factors
Interest rate volatility
Money demand

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Money, interest rates, and risk. / Slovin, Myron B.; Sushka, Marie.

In: Journal of Monetary Economics, Vol. 12, No. 3, 1983, p. 475-482.

Research output: Contribution to journalArticle

Slovin, Myron B. ; Sushka, Marie. / Money, interest rates, and risk. In: Journal of Monetary Economics. 1983 ; Vol. 12, No. 3. pp. 475-482.
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