Testing for the stability of money demand in italy: has the euro influenced the monetary transmission mechanism?
AbstractStability of money demand is a crucial issue for the efficacy of monetary policy. This is particularly true in the presence of significant exogenous shocks to the monetary system. By implementing the most recent econometric testing procedures, this article intends to investigate the consistency of the stability of money demand in Italy, one of the larger European Monetary Union (EMU) countries, before and after the EMU. Among others, the objective is, indeed, to ascertain the effect of a change in the currency regime on the monetary aggregates and to provide a valid empirical model which is a viable tool for policy performance.
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Bibliographic InfoPaper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Working Papers with number 2_2008.
Length: 34 pages
Date of creation: Feb 2008
Date of revision:
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Web page: http://economia.uniparthenope.it/ise/sito/index.htm
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Money demand; ARDL model; Kalman filter;
Other versions of this item:
- Salvatore Capasso & Oreste Napolitano, 2012. "Testing for the stability of money demand in Italy: has the Euro influenced the monetary transmission mechanism?," Applied Economics, Taylor & Francis Journals, vol. 44(24), pages 3121-3133, August.
- NEP-ALL-2009-06-17 (All new papers)
- NEP-CBA-2009-06-17 (Central Banking)
- NEP-MAC-2009-06-17 (Macroeconomics)
- NEP-MON-2009-06-17 (Monetary Economics)
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