credit shocks

A Banking Explanation of the US Velocity of Money: 1919-2004

JEL codes: 
E13, E32, E44
Version Date: 
Oct 2009

The paper shows that US GDP velocity of M1 money has exhibited long cycles around a 1.25% per year upward trend, during the 1919-2004 period. It explains the velocity cycles through shocks constructed from a DSGE model and annual time series data (Ingram et al., 1994).

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