Possibility of Inter-Sector Money Demand Conflict: A General Note

In many ways, the macro-money demand function specification is biased. Sectoral aggregation, presence of non-monetized pockets of sectoral GDPs, changing sectoral GDP structure etc., are a few of those biases that can arise in the macro-money demand function specification. The first author of this study has extensively written on some of these biases. The objective of this general theoretical note is to explain in how many ways sectoral conflicts can arise in money demand. Employing a two-sector theoretical framework, the present study derives the conditions of possible sector (gender) conflicts and their implications for money demand specification.