| Author(s) |
Valadkhani, Abbas
|
| Publication Date |
2008
|
| Abstract |
This paper examines the long- and short-run determinants of the demand for money in six countries in the Asian-Pacific region using panel data (1975- 2002). Various country-specific coefficients are allowed to capture inter-country heterogeneities. Consistent with theoretical postulates, it is found that (a) the demand for money in the long-run positively responds to real income and inversely to the interest rate spread, inflation, the real effective exchange rate, and the US real interest rate; (b) the long-run income elasticity is greater than unity; and (c) both the currency substitution and capital mobility hypotheses hold only in the long run.
|
| Citation |
Annals of Economics and Finance, 9(1), p. 47-60
|
| ISSN |
1529-7373
|
| Link | |
| Publisher |
Peking University Press
|
| Title |
Long- and Short-Run Determinants of the Demand for Money in the Asian-Pacific Countries: An Empirical Panel Investigation
|
| Type of document |
Journal Article
|
| Entity Type |
Publication
|
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