The monetary authorities of emerging market economies tend to emphasize the studies that find instabilities in the money demand functions and use them as the main pretext for formulating monetary policy strategies in which monetary aggregates play no prominent role. In this study, however, we...

This paper presents estimates of the demand for money function and the Phillips curve using quarterly data for the Mexican economy over the period 1980-1999. These estimates are used to test restrictions on the dynamic process of the errors and cross-equation parameter restrictions suggested by...