Sectoral behaviour of money demand is investigated. It is found that all the series used in the analysis are non-stationary and could not be used without proper transformation. From the cointegration analysis it is concluded that there is long run relationship between the real money demand and...

The paper provides estimate of money (M2) demand for business sector in Pakistan. By using cointegartion analysis and erropr correction mechanism the study found that business sectors money demand behaviour is completely different from the aggregate money demand function. The rate of interest on...

The objective of this paper has been to estimate dynamic demand for money function for the business sector in Pakistan. It is found that the individual time series of the variables included in the money demand function are not stationary. They are integrated of order one. Further it is concluded...