TY  - JOUR
AU  - Bordo,Michael D.
AU  - Choudhri,Ehsan U.
AU  - Schwartz,Anna J.
TI  - Money Growth Variability and Money Supply Interdependence Under InterestRate Control:  Some Evidence For Canada
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1480
PY  - 1987
Y2  - August 1987
UR  - http://www.nber.org/papers/w1480
L1  - http://www.nber.org/papers/w1480.pdf
N1  - Author contact info:
Michael D. Bordo
Department of Economics
Rutgers University
New Jersey Hall
75 Hamilton Street
New Brunswick, NJ 08901
Tel: 732/822-7152
Fax: 732/932-7416
E-Mail: bordo@econ.rutgers.edu

Anna J. Schwartz
NBER
365 Fifth Ave, 5th Floor
New York, NY  10016
Tel: 212/817-7957
Fax: 212/817-1597
E-Mail: aschwartz@gc.cuny.edu
AB  - Canada, like many countries, has recently experienced difficulties in achieving money growth stability and money supply independence. Based on the buffer-stock view of money-holding as well as the credit market approach to the money supply, this paper suggests that the problems have arisen from the Bank of Canada suse of an interestrate control mechanism.The paper argues that: (1) The short-run behavior of Canadian money grow this influenced by demand shifts in the Canadian credit market.(2)Movements in U.S. interest rates relative to the controlled Canadian interest rates are a key source of these shifts.The paper presents evidence on Canadian money supply and demand functions consistent with the foregoing explanation.
ER  -