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La demanda de M4 y la substitución de moneda en México: 1978-1990

Author

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  • Luis Miguel Galindo P.

Abstract

The objective of this essay is to analyze the demand for M4 and the capital flows in Mexico for the period 1978-1990. The econometric analysis heavily uses the general to specific methodology, cointegration and an error correction model. The empirical evidence shows the existence of a stable demand for M4. The demand for M4 depends, in the long run, on income and interest rate. In the short run the changes in the inflation rate and the currency substitution effect are relevant factors to explain M4. The presence of currency substitution implies that the authorities must take account of the differentials in the interest rates between Mexico and the United States. JEL Classification: E41.

Suggested Citation

  • Luis Miguel Galindo P., 1996. "La demanda de M4 y la substitución de moneda en México: 1978-1990," Brazilian Journal of Political Economy, Center of Political Economy, vol. 16(2), pages 315-326.
    • Handle: RePEc:ekm:repojs:v:16:y:1996:i:2:p:315-326:id:1207
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1207/1192
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    More about this item

    Keywords

    Demand for money; M4; inflation;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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