Buffer Stock Models and the Demand for Money

This important new text aims to make buffer stock theory accessible to undergraduate and postgraduate students. The book examines the nature of the buffer stock model of the demand for money and also makes an empirical investigation of one particular model using UK data. The concept of a buffer stock is explained with reference to other economic examples, and a survey is make of the nature of the many types of buffer stock model. The econometric performance of the buffer stock model is evaluated using aggregate and sectoral data for the UK economy. The book should be used by all those wishing to understand this important new development.