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Velocity in the long run : money and structural transformation
Item metadata
dc.contributor.author | Mele, Antonio | |
dc.contributor.author | Stefanski, Radoslaw (Radek) | |
dc.date.accessioned | 2016-08-10T09:30:18Z | |
dc.date.available | 2016-08-10T09:30:18Z | |
dc.date.issued | 2016-07-28 | |
dc.identifier | 244841757 | |
dc.identifier | 5f138a29-53fe-4c81-8096-1a4db061ab61 | |
dc.identifier.citation | Mele , A & Stefanski , R 2016 ' Velocity in the long run : money and structural transformation ' School of Economics and Finance Discussion Paper , no. 1610 , University of St Andrews , St Andrews , pp. 1-44 . | en |
dc.identifier.issn | 0962-4031 | |
dc.identifier.uri | https://hdl.handle.net/10023/9282 | |
dc.description.abstract | Monetary velocity declines as economies grow. We argue that this is due to the process of structural transformation - the shift of workers from agricultural to non-agricultural production associated with rising income. A calibrated, two-sector model of structural transformation with monetary and non-monetary trade accurately generates the long run monetary velocity of the US between 1869 and 2013 as well as the velocity of a panel of 92 countries between 1980 and 2010. Three lessons arise from our analysis: 1) Developments in agriculture, rather than non-agriculture, are key in driving monetary velocity; 2) Inflationary policies are disproportionately more costly in richer than in poorer countries; and 3) Nominal prices and inflation rates are not 'always and everywhere a monetary phenomenon': the composition of output influences money demand and hence the secular trends of price levels. | |
dc.format.extent | 44 | |
dc.format.extent | 1095583 | |
dc.language.iso | eng | |
dc.publisher | University of St Andrews | |
dc.relation.ispartof | en | |
dc.relation.ispartofseries | School of Economics and Finance Discussion Paper | en |
dc.subject | Structural transformation | en |
dc.subject | Monetary shares | en |
dc.subject | Velocity | en |
dc.subject | Agricultural productivity | en |
dc.subject | Non-monetary exchange | en |
dc.subject | HB Economic Theory | en |
dc.subject | S Agriculture | en |
dc.subject | SDG 2 - Zero Hunger | en |
dc.subject.lcc | HB | en |
dc.subject.lcc | S | en |
dc.title | Velocity in the long run : money and structural transformation | en |
dc.type | Working or discussion paper | en |
dc.contributor.institution | University of St Andrews. School of Economics and Finance | en |
dc.identifier.url | https://ideas.repec.org/p/san/wpecon/1610.html | en |
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