Money demand under a fixed exchange rate regime: the case of Saudi Arabia
نویسندگان
چکیده
This paper reviews earlier studies and shows that the money demand (MD) relationship under a fixed exchange rate (ER) regime differs from floating ER regime, mainly due to limited role of monetary policy in former regime. It then empirically demonstrates an open-economy model augmented with country-specific factors is better framework for characterizing MD function by applying cointegration equilibrium correction modeling Saudi data as case study. The main message authorities there are other factors, besides those theoretically predicted, shaping information important providing adequate supply support economic growth maintain stability ER, well checking make appropriate decisions.
منابع مشابه
The Impact of Monetary Regime on the Exchange Rate Pass-Through under Exchange Rate Volatility (Dynamic Panel Data Approach)
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ژورنال
عنوان ژورنال: Journal of Applied Economics
سال: 2022
ISSN: ['1667-6726', '1514-0326']
DOI: https://doi.org/10.1080/15140326.2022.2039889