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Effects of Purchasing Power Risk on Portfolio Demand for Money

Published online by Cambridge University Press:  06 April 2009

Andrew H. Chen
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Extract

The problem of the portfolio demand for money was first rigorously studied by Tobin [22]. It has been analyzed since then, by Hicks [8] and Arrow [1], among many others. Many interesting results and implications regarding liquidity preference and risk-taking are derived in these studies. However, the effect of purchasing power risk on liquidity preference has been overlooked in these studies.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 14 , Issue 2 , June 1979 , pp. 243 - 254
Copyright
Copyright © School of Business Administration, University of Washington 1979

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References

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