Is the US demand for money unstable?

Is the US Demand for Money Unstable?

The demand for money (M1) for the USA is estimated with annual data from 1960-2008 and its stability is analyzed with the extended Gregory and Hansen (1996b) test. In addition to estimating the canonical specification, alternative specifications are estimated which include a trend and additional variables to proxy the cost of holding money. Results with our extended specification showed that th...

Estimation Of The Demand For Money In Iran

The Demand for Money in China*

This paper discusses the money demand function in China. We use Cointegration technique and Error Correction Model to estimate the long-run and short -run money demand function. We find that M2 aggregate appears to be cointegrated with price level and income. We also specified a satisfying error correction model for M2.

International Evidence on the Demand for Money

One of the current questions in the literature on she demand for money is whether the adjustment of actual lo desired money holdings is in nominal or real terms. This paper describes a simple procedure that can be used to test the nominal against the real hypothesis. The test is carried out for 27 countries. The paper also tests the svuctural stability of the demand for money equations and the ...

The Demand for Money in Austria

In this paper, the demand for real money M1, M2 and M3 is estimated for Austria. The modelling takes place within the framework of a small vector autoregression. To estimate the demand for money, two-equation error-correction models are constructed, which contain the short-run dynamics and the long-run economic equilibrium. It is found that a stable money demand exists for all monetary aggregat...