01689cas a2200253 a 4500 AALejournalIMF004878 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866537 1018-5941 BD-DhAAL BD-DhAAL Cook, David. Financial Market Risk and U.S. Money Demand / David Cook, Woon Choi. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines empirically U.S. broad money demand emphasizing the role of financial market risk. We find that money demand rises with the liquidity risk of stock markets or the credit risk of corporate bond markets. After controlling for the effect of financial market risk, money demand becomes relatively stable over the last 35 years. At the sectoral level, household money holdings continue to be stable in a traditional model controlling for a decline in transactions costs for investing in mutual funds in the early 1990s. In contrast, business money holdings have been consistently (positively) associated with credit risk. Mode of access: Internet Choi, Woon. IMF Working Papers; Working Paper ; No. 2007/089 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/089/001.2007.issue-089-en.xml IMF e-Library