Abstract
The Federal Republic of Germany has experienced a stronger dependence on foreign money markets after a large increase in both domestic and foreign interest rates in the early 1970s. In this chapter we examine the effects of this stronger dependence on the stability of the demand for money in West Germany.
The authors are grateful to Philip Arestis, Herbert Buscher and Victoria Chick for their comments and also wish to thank the Economics Department of the Deutsche Bundesbank for kindly supplying essential data.
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References
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Also published in S.F. Frowen (ed.) Monetary Theory and Monetary Policy: New Tracks for the 1990s (London: Macmillan, 1992).
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© 1992 Stephen F. Frowen and Dietmar Kath
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Frowen, S.F., Schlomann, H. (1992). Financial Innovations and the Stability of the Demand for Money in Germany since 1974. In: Frowen, S.F., Kath, D. (eds) Monetary Policy and Financial Innovations in Five Industrial Countries. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21684-0_4
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DOI: https://doi.org/10.1007/978-1-349-21684-0_4
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