Demand for money function in India has been experimented with various specification and estimation issues. The main focus of this exercise is to re-evaluate the performance of the money demand specifications in the context of identifying suitable determinants. The major concern of this effort is...

We employ a recent time-varying cointegration test to revisit the usefulness of long-run money demand equations for the ECB, addressing the issue of their instability by means of a model evaluation exercise. Building on the results, we make a twofold contribution. First, we propose a novel...

We examine the (in)stability of real money demand function and the relevance of money in the contemporary monetary policy framework in Ghana. Both Bai-Perron (2003) structural stability and Quandt-Andrews unknown break tests were applied to ascertain possible structural breaks in Ghana's money...

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...

Beyer, Doornik and Hendry (2000, 2001) show analytically that three out of four aggregation methods yield problematic results when exchange rate shifts induce relative-price changes between individual countries and found the least problematic method to be the variable weight method of growth...

The goal of this paper is to examine the long and short-run determinants, and stability of money demand (M1) in the Republic of Macedonia using monthly data from January 2005 to October 2012. The Johansen cointegration technique and VECM model were used to find the long-run and short-term...

We revisit the usefulness of long-run money demand equations for the European Central Bank. We first conduct a model evaluation exercise by means of a recent time-varying cointegration test. A stable relation for euro area M3 is not rejected by data only when accounting for both a speculative...

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...

The paper reviews the stability of long-run money demand in the euro area in the light of recent revisions to M3 data. The analysis confirms the existence of a stable long-run money demand, although the estimated equation implies a smaller equilibrium M3 growth than the European Central Bank's...

This monthly monetary model for the euro area is gradually constructed from its two constituting components: a money demand and a loan demand model which both include the relation between the respective retail bank rates and the short-term market interest rate. Eventually, the encompassing...