The development of empirical foundations to the conduct of monetary policy in Tunisia is the central concern of this paper. Finding stable money demand functions for M2 and for M4, it concludes that monetary aggregates are an appropriate intermediate target of monetary policy in Tunisia and...

During the last two decades of the twentieth century, Brazil went through a sequence of failed stabilization plans that tried to cope with an enduring hyperinflation. This paper uses a money demand model to evaluate monetary policies during those episodes. Consistency between money supply and...

This paper studies the gain from using money as an indicator when monetary policy is made under data uncertainty. We use a forward and backward looking model, calibrated for the euro area. The policymaker cannot completely observe the state of the economy. Money reveals some of the private...

We study the relation between holdings of monetary assets and government securities in the Euro area. We estimate time-varying elasticities of substitution between monetary assets using the semi-nonparametric method of Gallant (1981). The empirical elasticities are then tested for structural...

We examine the long-run relation linking the demand for money in Australia to economic activity and the interest rate for an extended period from 1976 to 2010. Using the Johansen cointegration test, we test the relationship for three measures of monetary aggregate – currency, M1 and M3. The...

Two types of currency in circulation models are identified: (1) a first generation derived fromthe theory of money demand and (2) a second generation aimed at producing daily forecastsof currency in circulation. In this paper, we transform the currency demand function into aVAR to capture the...

During the last two decades of the twentieth century, Brazil went through a sequence of failed stabilization plans that tried to cope with an enduring hyperinflation. This paper uses a money demand model to evaluate monetary policies during those episodes. The consistency between the money...