1. Dummy variables are one means of taking account of these instabilities when estimating regression equations for money demand.

2. a prominent role for monetary aggregates, provided that money demand in the euro area is sufficiently stable in the long run

3. The present paper investigates the impact of German money growth volatility on income velocity and money demand in view of Friedman’s money growth volatility hypothesis.

4. If, for instance, money supply were to increase, the aggregate demand curve would shift 11 Economists often express a decline in money demand in terms of an increase in the velocity of money.