The recent fluctuations in stock prices around the world and the critical place that the demand function for money holds in the formulation of a country’s monetary policy motivated us to investigate the question as to whether real stock prices play any significant role in affecting the demand...

Using a portfolio balance approach, this paper makes an initial attempt to examine the importance of international factors, such as foreign interest rate and nominal effective exchange rate, on the stability of long-run money demand function in an open developing economy with free capital...

This paper attempts to develop and question the validity of an important demand model incorporating a proxy variable representing exchange rate risk. Given the scenario of a newly industrialising economy such as Korea where the scope of established forward exchange markets are limited,...

This paper is the first attempt to provide econometric evidence on the response of real output, and the price level to movements in unanticipated as wel1 as anticipated monetary growth for ten Asian developing countries in the context of New Classical rational expectations - natural rate theory....

By using Johansen's multivariate co integration procedural, six European spot forward exchange rates are used to test f or the market efficiency hypothesis under three different exchange rate regimes. Although the co integration technique is b extensively used for hypothesis testing of a similar...