Author(s):
Jawadi, Fredj 
; Sousa, Ricardo M.
Date: 2012
Persistent ID: http://hdl.handle.net/1822/22491
Origin: RepositóriUM - Universidade do Minho
Subject(s): Money demand; Dynamic OLS
Document details
Modelling money demand : further evidence from an international comparison
Description
This paper aims at estimating money demand for the euro area, the US and the UK using a dynamic ordinary least squares estimator (DOLS). Our findings show that: (i) wealth effects on money demand are important in the euro area and the UK; (ii) the impact of changes in the interest rate on real money holdings is negative and small; (iii) goods are a reasonable alternative to money; and (iv) international currency substitution has a major influence on the behaviour of real money demand in the UK.
This paper aims at estimating money demand for the euro area, the US and the UK using a dynamic ordinary least squares estimator (DOLS). Our findings show that: (i) wealth effects on money demand are important in the euro area and the UK; (ii) the impact of changes in the interest rate on real money holdings is negative and small; (iii) goods are a reasonable alternative to money; and (iv) international currency substitution has a major influence on the behaviour of real money demand in the UK.
Document Type
Research paper
Language English
Language English
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