@article {Chowdhury:1999-09-01T00:00:00:0003-6846:1137, author =
"Chowdhury, Abdur R. and Wheeler, Mark", title = "The velocity
of US M2 in the 1990s: some further evidence", journal =
"Applied Economics", volume = "31", number = "9", year =
"1999-09-01T00:00:00", abstract = "This paper investigates the
behaviour of M2 velocity in recent years with special emphasis
on the post-1989 period. Unlike previous studies in this area,
M2 velocity is analysed in the context of a small vector
autoregressive (VAR) model which includes income, prices,
interest rates, and money growth volatility. The hypothesis of a
structural shift in M2 velocity associated with the post-1989
period is rejected by the VAR model. This suggests that the
unusual behaviour of M2 velocity since 1989 may be traced to the
variability in its determinants, rather than to a shift in the
process generating velocity. Variance decompositions indicate
that real income and the short-term opportunity cost of M2 are
the most important determinants of M2