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The demand for money in a small open economy: The case of Switzerland Author info | Abstract | Publisher info | Download info | Related research | Statistics Abdur Chowdhury
The paper uses cointegration analysis to investigate the demand for money in Switzerland in the context of an open economy. It considers the general process of financial asset substitution and tests for the relevance of an exchange rate and a foreign interest rate variable in a conventional money demand equation. The results show that the variables entering into the demand for either monetary base or narrow money equation may not form a cointegrated system unless the exchange rate or foreign interest rate variable is included. This provides support to both the currency substitution and capital mobility hypotheses. Copyright Kluwer Academic Publishers 1995
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Article provided by Springer in its journal Open Economies Review .
Volume (Year): 6 (1995)
Issue (Month): 2 (April)
Pages: 131-144
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Handle: RePEc:kap:openec:v:6:y:1995:i:2:p:131-144Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100323
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Keywords: money demand ; open economy ; cointegration ; References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Andreas M. Fischer & Michel Peytrignet, 1990.
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Swiss Journal of Economics and Statistics (SJES) ,
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Erwin W. Heri, 1988.
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McKenzie, C. R., 1992.
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Journal of the Japanese and International Economies ,
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Fischer, Andreas M & Peytrignet, Michel, 1991.
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Bell, William R & Hillmer, Steven C, 1984.
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Ericsson, Neil R., 1992.
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Other versions: Hafer, R W & Jansen, Dennis W, 1991.
"The Demand for Money in the United States: Evidence from Cointegration Tests ,"
Journal of Money, Credit and Banking ,
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Other versions: Piyu Yue & Robert Fluri, 1991.
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Ghysels, E., 1986.
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Other versions: Tobias F. Rotheli, 1988.
"Money demand and inflation in Switzerland: an application of the Pascal technique ,"
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Bahmani-Oskooee, Mohsen & Pourheydarian, Mohammad, 1990.
"Exchange Rate Sensitivity of Demand for Money and Effectiveness of Fiscal and Monetary Policies ,"
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"Modelling Money Demand in Open Economies over the Modern Floating Rate Period ,"
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repec:fip:fedreq:y:1987:i:may:p:3-16:n:v.73no.3 is not listed on IDEAS
Diebold, Francis X. & Rudebusch, Glenn D., 1991.
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Other versions: Fischer, Andreas M, 1993.
"Is Money Really Exogenous? Testing for Weak Exogeneity in Swiss Money Demand ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 25(2), pages 248-58, May.
[Downloadable!] (restricted)
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Valadkhani, Abbas, 2006.
"What Determines the Demand for Money in the Asian-Pacific Countries? An Empirical Panel Investigation ,"
Economics Working Papers
wp06-11, School of Economics, University of Wollongong, NSW, Australia.
[Downloadable!]
Fidrmuc, Jarko, 2006.
"Money Demand and Disinflation in Selected CEECs during the Accession to the EU ,"
Discussion Papers in Economics
1232, University of Munich, Department of Economics.
[Downloadable!]
Other versions: Abbas Valadkhani, 2003.
"Long and Short-Run Determinants of Money Demand in New Zealand: Evidence from Cointegration Analysis ,"
School of Economics and Finance Discussion Papers and Working Papers Series
132, School of Economics and Finance, Queensland University of Technology.
[Downloadable!]
Abbas Valadkhani & Mohammad Alauddin, 2003.
"Demand for M2 in Developing Countries: An Empirical Panel Investigation ,"
School of Economics and Finance Discussion Papers and Working Papers Series
158, School of Economics and Finance, Queensland University of Technology.
[Downloadable!]
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