The Stability of European Money Demand: An Investigation of M3H
AbstractThe paper assesses the stability and predictive performance of a European money demand function as compared to national money demand functions. With respect to the explanatory accuracy, the national functions perform better than the aggregated function. Examination of the residuals of the national money demand equations indicates that currency substitution is not the major cause for the stability of the aggregated money demand function. The aggregate relation mainly seems to reflect German money demand. This conclusion is supported by the instability of aggregated money demand resulting from the exclusion of Germany from the aggregate. Copyright Kluwer Academic Publishers 1997
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Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 8 (1997)
Issue (Month): 4 (October)
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Web page: http://www.springerlink.com/link.asp?id=100323
demand for money; European Monetary Union; cointegration;
Other versions of this item:
- Wesche, Katrin, 1995. "The Stability of European Money Demand: An Investigation of M3H," Discussion Paper Serie B 337, University of Bonn, Germany.
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
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