This paper explores the problem of the specification of money demand equations and presents the hypothesis that the current, purely domestic definition of money is too restrictive and fails to account for the important growth in the liquidity of foreign money. While the author does not empirically test the hypothesis, he offers specifications that could be tested, and presents circumstantial evidence to support the hypothesis.
Lund, John, The International Aspects of Money Demand. Santa Monica, CA: RAND Corporation, 1986. https://www.rand.org/pubs/papers/P7258.html. Also available in print form.
Lund, John, The International Aspects of Money Demand, Santa Monica, Calif.: RAND Corporation, P-7258-RGS, 1986. As of October 06, 2021: https://www.rand.org/pubs/papers/P7258.html