Abstract
This note presents an estimate of a demand function for broad money (£M3) for the UK, 1964ii–1985iv. It shows no sign of structural instability due to Competition and Credit Control, and forecasts well for twenty quarters post‐sample (1981i‐1985iv). A key innovation is the allowance made for financial innovation by including the interest rate available on new, high‐interest chequing accounts in the equation.
| Original language | English |
|---|---|
| Pages (from-to) | 225-233 |
| Number of pages | 9 |
| Journal | Bulletin of Economic Research |
| Volume | 39 |
| Issue number | 3 |
| DOIs | |
| State | Published - Jul 1987 |