The Behavior of Money Demand in the 1980s
解释了1980年代M1货币需求超出预期增长的原因，源于金融放松管制和利率下降，并指出M2需求函数未受影响。
EXISTING MONEY DEMAND FUNCTIONS did not predict the strength in M1 in the 1980s. This strength derived from the combination of a change in the character of M 1 due to Elnancial deregulation and the sharp fall in market rates that began in 1982. The public's M2 demand function, however, remains unaffected by the forces that altered the M1 demand function. The character of the public's M 1 demand function changed with the legalization nationwide in January 1981 of the checkable deposits known as NOWs. Because NOWs pay explicit interest, they are used by the public as an instrument for saving, as well as for effecting transactions (Mehra 1986). The addition of NOWs to M1, therefore, caused M1 to become more highly substitutible with the savings instruments included in the non-Ml component of M2, that is, savings deposits, small time deposits, money market deposit accounts (MMDAs), and money market mutual funds of noninstitutional investors (MMMFs). Furthermore, financial institutions move the rate paid on NOWs only sluggishly in response to changes in market rates. In contrast, the rates paid on small time deposits, MMDAs, and MMMFs move promptly in response to changes in market rates. Consequently, when market rates fell beginning in late summer 1982, the differential between the rates paid on the non-Ml components of M2 and on NOWs fell sharply. The public then substituted out of the non-Ml components of M2 and into the NOWs in M1. These substitutions increased M1 de-