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In this paper we present an empirically stable euro area money demand model. Using a sample period until 2009:2 shows that the current financial and economic crisis that started in 2007 does not appear to have any noticeable impact on the stability of the euro area money demand function. We also...
Persistent link: https://www.econbiz.de/10009316570
This study examines the asymmetric effects of uncertainties in monetary policy on the demand for money in Greece. In doing so, it introduces and uses the monetary policy uncertainty (MPU) index, which can probably be a very appropriate and robust explanatory variable in demand-for-money models....
Persistent link: https://www.econbiz.de/10014310223
-specified and stable money demand in India after incorporating the inflation forecast variable as one of the essential determinants … aggregate, in the ongoing flexible inflation targeting framework, as one of the essential information or indicator variables …
Persistent link: https://www.econbiz.de/10014500858
The relationship between exchange rate and money demand has long been debated among macroeconomists due to its impact on the stability of money demand and monetary policy. Following the significant depreciation in the currency exchange associated with the political instability in Malaysia in...
Persistent link: https://www.econbiz.de/10013459224
Knowing the part of currency in circulation that is used for transactions is important information for a central bank. For several countries, the share of banknotes that is hoarded or circulates abroad is sizeable, which may be particularly relevant for large-denomination banknotes. We analyze...
Persistent link: https://www.econbiz.de/10012137979
The use of cashless payment instruments has been on an increase over many years now. At the same time, demand for cash has been on the rise as well and we can observe a particularly high level of growth demand for banknotes during crisis times. The increase in demand for cash known as the...
Persistent link: https://www.econbiz.de/10014316654
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This paper characterizes the relationship between monetary aggregates, inflation and economic activity in Switzerland …, have been followed by persistently higher inflation and output with the usual monetary policy transmission lags. Money and … exchange rate fluctuations can explain the major inflation developments in Switzerland over the past four decades. …
Persistent link: https://www.econbiz.de/10012793487
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