Bank of England Studies of the Demand-for-Money Function

Much of the econometric work undertaken in the Bank of England during the years 1969–74 has concentrated on the demand-for-money function. There have been three papers in the Bank of England Quarterly Bulletin specifically on this subject, by Goodhart and Crockett[14] by Price [26] and by Hacche[17].1 Several other research papers have been on cognate topics. For example, there have been two papers on the timing (lead/lag) relationships between monetary aggregates and various expenditure series, the first by Crockett[10] and the second by Goodhart, Gowland and Williams[15]. Also there was a study on the substitutability among various capital-certain assets, examined within a portfolio adjustment model, which was started by Latter and Price, who reported on this work at the 1971 meeting of the Association of University Teachers of Economics, and carried to completion by Townend in a paper presented to the Econometric Society meeting at Budapest in 1972 and summarised in [28]. Although the econometric research work undertaken in the Bank has been by no means limited exclusively to studies on the demand-for-money function (or very closely related issues) — there have, to take an example, been a number of papers on the determinants of the shape of the yield curve by Burman[7], Burman and White[8/9] and Hamburger[19] — nevertheless it has formed a continuing focus for research work.