Quantity theory of money

This study includes an historical perspective which gives
insight into the reasons for holding coins. Emphasis is given to
the particular attributes of coins which differentiate between
them and the aggregate money supply. Also included is a survey of
relevant literature which concentrates upon the demand for money and
the demand for currency as theoretical supports for the demand for
coins. The models to estimate the demand for coins are discussed
and then the estimations themselves receive attention. The models
are estimated using multiple regression, and results tend to confirm
the hypothesis that the traditional demand for money function
does not precisely explain the demand for coins. The conclusion is,
basically, that there are indeed other variables explaining the
demand for coins which must be included in the model.