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...

Purpose – The purpose of this paper is to investigate whether the inclusion of uncertainty variables in the demand for money function can produce a stable relationship in Turkey. Design/methodology/approach – The stability of a money demand function is studied by testing parameter constancy...

Purpose – The purpose of this paper is to investigate whether the inclusion of uncertainty variables in the demand for money function can produce a stable relationship in Turkey. Design/methodology/approach – The stability of a money demand function is studied by testing parameter constancy...