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Long-run estimates of money demand in Romania

Author

Listed:
  • Andreea Andronescu
  • Hassan Mohammadi
  • James Payne

Abstract

This paper estimates the long-run demand for money in Romania using monthly data from January 1994 to August 2003. The Johansen-Juselius cointegration procedure provides evidence of one cointegrating vector for both narrowly and broadly defined money demand functions. Real money balances are not only sensitive to real income, but also the domestic interest rate and the depreciation of the domestic currency.

Suggested Citation

  • Andreea Andronescu & Hassan Mohammadi & James Payne, 2004. "Long-run estimates of money demand in Romania," Applied Economics Letters, Taylor & Francis Journals, vol. 11(14), pages 861-864.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:14:p:861-864
    DOI: 10.1080/1350485042000263881
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    References listed on IDEAS

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    2. Marzieh Bolhassani & Hassan Mohammadi & James E. Payne, 2003. "Demand and Currency Substitution: New Evidence from the Iranian Economy," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 56(4), pages 423-433.
    3. Keith Cuthbertson & Don Bredin, 2001. "Money demand in the czech republic since transition," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 4(4), pages 271-290.
    4. van Aarle, B. & Budina, N., 1995. "Currency substitution in Eastern Europe," Other publications TiSEM ae2e408f-a310-4eb3-9d89-5, Tilburg University, School of Economics and Management.
    5. Hafer, R W & Jansen, Dennis W, 1991. "The Demand for Money in the United States: Evidence from Cointegration Tests," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(2), pages 155-168, May.
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    Cited by:

    1. Mauricio A. Hernández & Munir Jalil Barney & Carlos Esteban Posada, 2006. "¿Por qué ha crecido tanto la cantidad de dinero?: teoría y evidencia internacional (1975-2002)§," Borradores de Economia 402, Banco de la Republica de Colombia.
    2. Melina Dritsaki & Chaido Dritsaki, 2012. "A panel data approach to the demand for money in Bulgaria and Romania," Applied Economics Letters, Taylor & Francis Journals, vol. 19(8), pages 705-710, May.
    3. Mauricio A. Hernández Monsalve & Carlos Esteban Posada Posada, 2006. "La demanda por dinero en Colombia: un poco más de evidencia en el período reciente," Perfil de Coyuntura Económica, Universidad de Antioquia, CIE.
    4. Boriss Siliverstovs, 2008. "Dynamic modelling of the demand for money in Latvia," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 8(1), pages 53-74, October.
    5. Claudiu Albulescu & Dominique P'epin, 2016. "The loss of interest for the euro in Romania," Papers 1609.01900, arXiv.org.
    6. Mauricio Hern�ndez Monsalve & Munir A. Jalil Barney & Carlos Esteban Posada, 2006. "�Por qu� ha crecido tanto la cantidad de dinero?: teor�a y Evidencia Internacional (1975-2002)," Borradores de Economia 3821, Banco de la Republica.
    7. Boriss Siliverstovs, 2006. "Modelling Demand for Money in Latvia (in Russian)," Quantile, Quantile, issue 1, pages 67-79, September.
    8. Ruxanda, Gheorghe & Botezatu, Andreea, 2008. "Spurious Regression And Cointegration. Numerical Example: Romania’S M2 Money Demand," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(3), pages 51-62, September.
    9. C. T. Albulescu & D. Pépin, 2019. "The money demand and the loss of interest for the euro in Romania," Applied Economics Letters, Taylor & Francis Journals, vol. 26(3), pages 196-201, February.
    10. Claudiu Albulescu & Dominique Pépin, 2016. "The loss of interest for the euro in Romania," Working Papers hal-01361214, HAL.
    11. Boriss Siliverstovs, 2007. "Money Demand in Estonia," Discussion Papers of DIW Berlin 675, DIW Berlin, German Institute for Economic Research.

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