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A money demand system for euro area M3

  • Claus Brand
  • Nuno Cassola
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    In order to assess the importance of monetary and financial developments for key macroeconomic variables in the euro area a money demand system for M3 is estimated adopting a structural cointegrating VAR approach. While maintaining a good statistical representation of the data, long-run relationships are based on economic theory. By using generalized response profiles the dynamics of the money demand system is investigated without any further identifying assumptions. Error bounds of the profiles are derived using bootstrap simulations.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229541
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    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 36 (2004)
    Issue (Month): 8 ()
    Pages: 817-838

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    Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:817-838
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