Economics, Econometrics and Finance
4 years ago

Time deposits linked to inflation, challenging inclusion in money supply definition.

Elsevier eBooks
Cross Country Inflation Evidence of the Moneyness of Time Deposits**Reprinted by permission from The Economic Record, vol. 46, no. 114 (June 1970).
John Conlisk

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The article shows that when a country's money supply increases a lot, inflation goes up. The researchers looked at two countries that were similar, but one had more time deposits. They found that the country with more time deposits had higher inflation. This suggests that time deposits should not be counted as money like cash and demand deposits.