Empirical model of the behavior of the income velocity of money in Colombia, 1982 �? 2001

Ecos de Economía: A Latin American Journal of Applied Economics

Gisela P. Zapata¹ 

[1] North Carolina State University

关键词: Convergencia;    Ingreso per cápita;    Desarrollo regional;    Crecimiento económico;   

DOI  :  

学科分类：社会科学、人文和艺术（综合）

来源: Universidad Eafit

【 摘 要 】

The study of the income velocity of money is important since monetary factors play a causal role in output fluctuations. The issue of the stability of money demand is critical in assessing the monetary aggregates, M1/M3, usefulness for the formulation of monetary policy. In Colombia, the M1 income velocity of money has been very volatile whereas the M3 velocity has been pretty stable over the last 20 years. Contrary to the assumption underlying the Quantity Theory of Money, the evidence here indicates that the income velocity of money is not constant in Colombia for the 1982 �? 2001 period. The statistical results show that there is a positive relationship between the Colombian inflation rate and the M1 and M3 income velocities of money. A higher rate of inflation will translate into a higher nominal interest rate. The higher the interest rates the higher the opportunity cost of holding money and so the greater the income velocity.

【 授权许可】

Unknown