@techreport{NBERw9235,
 title = "Short-Run Money Demand",
 author = "Laurence Ball",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "9235",
 year = "2002",
 month = "September",
 URL = "http://www.nber.org/papers/w9235",
 abstract = {The paper estimates a long-run demand function for M1, using U.S. data for 1959-1993.  This paper interprets deviations from this long-run relation with Goldfeld's partial adjustment model.  A key innovation is the choice of the interest rate in the money demand function.  Most previous work uses a short-term market rate, but this paper uses the average return on  near monies' close substitutes for M1 such as savings accounts and money market mutual funds.  This approach yields a predicted path of M1 velocity that closely matches the data.  The volatility of velocity after 1980 is explained by volatility in the returns on near monies.},
}