In this paper we analyze the money demand functions of the four largest EMU countries and of the four-country (EMU-4) aggregate. We identify reasonable and stable money demand relationships for Germany, France and Spain as well as the EMU-4 aggregate. For the case of Italy, results are less...

This paper examines the long-run money demand function for 11 OECD countries from 1983 to 2006 using panel data and including wealth. The distinction between common factors and idiosyncratic components using principal component analysis allows to detect cross-member cointegration and to...

The Asymptotically Ideal Model (AIM), first estimated by Barnett and Yue (1998), based on the Muntz-Szatz series expansion as described by Barnett and Jonas (1983) is used to estimate money demand using quarterly US data from 1960 to the first quarter of 2004. We find that monetary assets are...

El objetivo principal de la presente investigación es hacer un análisis empírico sobre las relaciones de interdependencia dinámicas entre las remesas familiares, la demanda de dinero y el tipo de cambio real en la economía dominicana. Para tales fines, estimamos un Vector de Corrección de...

By adopting the bounds testing for cointegration framework in Pesaran et al. (2001), this paper investigates the dynamics of money demand in Vietnam from 1999 to 2011. The empirical result delivers strong evidence for a long-run relationship between money demand and income, expected inflation,...

This paper investigates the dynamic of relationship between real money balances and real income, lending rates, interest rates and inflation rate in ASEAN-5, namely Indonesia, Malaysia, Philippine, Singapore and Thailand. Using sample period for each country spans from 1987 month one through...

This paper attempts to explain one version of an empirical puzzle noted by Mankiw (2003): a Baumol-Tobin inventory-theoretic money demand equation predicts that the average U.S. adult should have held approximately $551.05 in currency and coin in 1995, while data show an average of $100. The...

The objective is to test, from micro-level data, the complete general framework of the transaction demand for money agrave; la Baumol established fifty years ago. The results confirm the relevancy of the Baumol's square root law while pointing out for the first time the impact of the subjective...

This article analyzes the relationship between remittances, exchange rates and money demand in Mexico. We find that shocks to remittances have a positive impact on domestic money demand. The results also suggest the existence of a bi-directional relationship between remittances and the exchange...