Economics, Econometrics and Finance
8 years ago

Optimizing industrial structure and openness reduces money demand, study finds.

The Modification of Money Demand Function and the Empirical Research on Money Demand Elasticity
Zeng Li-fei

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Market-based interest rates crucial in understanding money demand in China.

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The article looks at how different factors affect how much money people and businesses want to hold. By studying money demand in China, the researchers found that the types of industries and how open the economy is can change how much money people want to keep. If industries are optimized and the economy becomes more open, people will gradually want less money.