MONEY SUBSTITUTES FOR THE CORPORATE BUSINESS SECTOR.

The article focuses on the role of financial non-money assets as substitutes for money in the corporate business sector. It states that economist Milton Friedman's criterion for substitutability is that alterations in money-substitute holdings have to change in the opposite direction from money holdings changes. It mentions that using this definition, which includes time deposits, and examining data for annual flow-of-funds, the behavior of money and government securities from the late 1940s to 1967 contradict the conclusion Friedman made regarding their behavior. It states that aggregate changes in liquid financial asset holdings such as finance papers, government securities, and time deposits, display the same behavior expected for money-substitutes.