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The money demand and the loss of interest for the euro in Romania

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  • Claudiu Tiberiu Albulescu

    (CRIEF - Centre de recherche sur l'intégration économique et financière - UP - Université de Poitiers = University of Poitiers)

  • Dominique Pépin

    (CRIEF - Centre de recherche sur l'intégration économique et financière - UP - Université de Poitiers = University of Poitiers)

Abstract

We generalize a money demand micro-founded model to explain Romanians' recent loss of interest for the euro. We show that the reason behind this loss of interest is a severe decline in the relative degree of the euro liquidity against that of the Romanian leu.

Suggested Citation

  • Claudiu Tiberiu Albulescu & Dominique Pépin, 2019. "The money demand and the loss of interest for the euro in Romania," Post-Print hal-01361214, HAL.
  • Handle: RePEc:hal:journl:hal-01361214
    DOI: 10.1080/13504851.2018.1456645
    Note: View the original document on HAL open archive server: https://hal.science/hal-01361214
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    1. Christian Dreger & Hans-Eggert Reimers & Barbara Roffia, 2007. "Long-Run Money Demand in the New EU Member States with Exchange Rate Effects," Eastern European Economics, Taylor & Francis Journals, vol. 45(2), pages 75-94, April.
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    9. Robert Mulligan & Erwin Nijsse, 2001. "Shortage and currency substitution in transition economies: Bulgaria, Hungary, Poland, and Romania," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(3), pages 275-295, August.
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    Cited by:

    1. ALBULESCU, Claudiu Tiberiu & PÉPIN, Dominique & MILLER, Stephen M., 2019. "The micro-foundations of an open economy money demand: An application to central and eastern European countries," Journal of Macroeconomics, Elsevier, vol. 60(C), pages 33-45.

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    Keywords

    open economy model; money demand; currency substitution; Romania;
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