Demand for Money and the Black Market Exchange Rate Expectations: Further Empirical Evidence
AbstractThis paper explores the impact of the black market exchange rate expectations on the demand for money in Iran. In the post-revolution era, Iran has imposed a great deal of restriction on the exchange market. The restrictions were so severe that in the period 1979-89, the nation basically was a closed economy. However, as the exchange market restrictions intensified, an active underground exchange market emerged in which key currencies in general and the U.S. dollar in particular, were exchanged several-fold higher than the official rate. The findings suggest that in the sample period 1959-94, demand for real cash balances has been significantly affected by the expected black market exchange rate. Further, the results of a cointegration test provide ample evidence that the expected appreciation/depreciation in the black market exchange rate, real income, and the rate of inflation jointly determine the demand for real M2-money in Iran.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Missouri Valley Economic Association in its journal The Journal of Economics.
Volume (Year): 26 (2000)
Issue (Month): 2 ()
Find related papers by JEL classification:
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shahrestani, Hamid & Sharifi-Renani, Hosein, 2007.
"Demand for money in Iran: An ARDL approach,"
11451, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ken Brown).
If references are entirely missing, you can add them using this form.