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Modelling Demand for Money in Latvia (in Russian)

Author

Listed:
  • Boriss Siliverstovs

    (DIW Berlin, Germany)

Abstract

This study develops an error correction model for money demand in Latvia. The core of the model is a single cointegrating vector containing information about the long-run equilibrium between the real money balances, gross domestic product, and long-term interest rate. The model exhibits coefficient stability and has an ability to accurately predict the money balances during the last three years.

Suggested Citation

  • Boriss Siliverstovs, 2006. "Modelling Demand for Money in Latvia (in Russian)," Quantile, Quantile, issue 1, pages 67-79, September.
    • Handle: RePEc:qnt:quantl:y:2006:i:1:p:67-79
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    References listed on IDEAS

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    More about this item

    Keywords

    money demand; new EU member states; Latvia;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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