The Remarkable Stability of Monetary Base Velocity in the United States,1919-1999

• DOI: 10.20955/wp.2001.008
• Publication Date: 2018-10-11T18:56:42Z
• Authors: Richard G. Anderson; Robert H. Rasche
• Keywords: Money supply ; Bank reserves ; Velocity of money; 0502 economics and business; 05 social sciences; 8. Economic growth; 1. No poverty

This analysis examines the long-run demand for the adjusted monetary base in the United States, 1919-1999. When the "price"of the base is measured by the inverse of the yield on long-term, high-quality corporate bonds and an appropriate functional form is selected, the quantity of base money demanded is found to be a stable function "...of a small number of variables."