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Currency substitution and money demand in Euroland Author info | Abstract | Publisher info | Download info | Related research | Statistics Miguel Lebre de Freitas () (Universidade de Aveiro and NIPE)
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This papers tests the stability of the demand for money in the euro area in the context of an open economy. A sample consisting of quarterly data covering the 1982:2-1999:3 period is considered. The main finding is that the US long term rate of interest plays a significant role in the European money demand relationship. This result holds for different combinations of variables forming the vector auto-regressive system and suggests that currency substitution vis-à-vis the US dollar may be an important factor influencing the ECB monetary policy.
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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number
11/2003.
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Date of creation: 2003Date of revision:
Handle: RePEc:nip:nipewp:11/2003Contact details of provider: Postal: Núcleo de Investigação em Políticas Económicas, Escola de Economia e Gestão, Universidade do Minho, P-4710-057 Braga, Portugal Phone: +351-253604510 ext 5532 Fax: +351-253601380 Email: Web page: http://www3.eeg.uminho.pt/economia/nipe/versao_inglesa/index_uk.htm More information through EDIRC
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Keywords: EMU ; Money Demand ; International Currencies ; Currency Substitution. ; Other versions of this item:
Find related papers by JEL classification: E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
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