IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v50y2000i12p673-684.html
   My bibliography  Save this article

The Money in Circulation Demand

Author

Listed:
  • Daniel Kožel

Abstract

The paper discusses the main determinants of money-in-circulation demand in the Czech economy from 1996 to 1999. The volume of intended transactions (approximated by retail revenue from sales), the opportunity cost of holding cash (approximated by interest rate) and the expected rate of inflation are identified as the factors that most importantly account for the development of cash demand. A simple regression model was estimated in order to quantify the relationships among the aforementioned variables. Further, the author attempted to estimate the time lags between the explanatory variables? developments and the development of money in circulation. The paper concludes that money in circulation is not a very precise leading indicator of demand.

Suggested Citation

  • Daniel Kožel, 2000. "The Money in Circulation Demand," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 50(12), pages 673-684, December.
    • Handle: RePEc:fau:fauart:v:50:y:2000:i:12:p:673-684
    as

    Download full text from publisher

    File URL: http://journal.fsv.cuni.cz/mag/article/show/id/875
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    money in circulation; money demand; intended transactions; partial adjustment model;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:fauart:v:50:y:2000:i:12:p:673-684. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.