The Demand for Money and Monetary Adjustments in Chile.

This paper presents evidence on the demand for money in Chile for the period 1935 to 1963. Ibis economy has experienced a growth history and a monetary history that are quite different from those of the United States and many other western countries. However, the economic structure appears to be sufficiently similar to those of more developed economies that comparisons may be made between the results of this study and those obtained elsewhere. Chile offers a particularly interesting experiment for the study of monetary phenomena because the variables that are of critical interest—real money balances, real income, and the cost of holding money—have undergone large variation through time and thus provide an excellent set of observations for statistical analysis. The movements of the important variables are summarized in Table I. [ABSTRACT FROM AUTHOR]