Publisher's Synopsis
Excerpt from The Demand for Money When Firms Hold Balances as Payment for Services
Other researchers reject the models on the basis of these findings (sprenkle, They suggest that the simple inventory - cost minimization models are inadequate in explaining the complex firm bank relationship which determines money demand. Specifically, the transactions motive forlmoney holding on which such models are predicated is not the only such motive in the u.s. Financial environ ment. Firms hold deposits to receive bank services, and they hold compensating balances which are often required for loans and lines of credit. They argue that simple optimizing models cannot capture these subtle, heuristic reasons for money holding, vhich may be irrational but nevertheless are the fruit of years of tradition. The data seem to support such arguments, especially in light of the models' failure in the first two problem areas as well.
About the Publisher
Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com
This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
