search query: @author Reimers, H.-E. / total: 1
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| Author: | Tödter, K.-H. Reimers, H.-E. |
| Title: | P-Star as a link between money and prices - a reply |
| Journal: | Weltwirtschaftliches Archiv
1995 : VOL. 131:1, p. 163-166 |
| Index terms: | INCOMES WEALTH PRICE LEVEL |
| Language: | eng |
| Abstract: | The P-Star approach offers a simple yet flexible framework to study the relationship between money and prices. We have introduced a money demand function into the model to account for the downward trend of velocity in Germany. Mayer further extends the model by incorporating a wealth variable into the money demand function. While this should be a potentially useful extension , there are several problems with this approach, concerning the distinction between actual and equilibrium wealth, the relationship between income and wealth, and cointegration between income and wealth, and cointegration between the actual and the derived equilibrium price level. |
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