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Inflation Uncertainty and Momey Demand: Evidence from a Monetary Regime Changed and the Cases of Greece

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  • Apergis Nicholas

Abstract

This paper has extended a money demand equation to include uncertainty of inflation as a specific argument. The empirical analysis shows that in Greece inflation uncertainty is described well by an ARCH process. A money demand equation that explicitly takes into consideration the inflation uncertainty process seems to be capable of capturing any money demand structural instabilities. These instabilities, in turn, are shown to have been caused by the monetary deregulation process occurred in 1988. [E41, E42]

Suggested Citation

  • Apergis Nicholas, 1999. "Inflation Uncertainty and Momey Demand: Evidence from a Monetary Regime Changed and the Cases of Greece," International Economic Journal, Taylor & Francis Journals, vol. 13(2), pages 21-30.
    • Handle: RePEc:taf:intecj:v:13:y:1999:i:2:p:21-30
    DOI: 10.1080/10168739900000034
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    References listed on IDEAS

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    1. repec:kap:iaecre:v:14:y:2008:i:2:p:205-214 is not listed on IDEAS
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    3. Sambulo Malumisa, 2015. "Structural Breaks, Stability and Demand for Money in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 7(5), pages 79-90.
    4. Pei-Tha Gan, 2014. "The Optimal Economic Uncertainty Index: A Grid Search Application," Computational Economics, Springer;Society for Computational Economics, vol. 43(2), pages 159-182, February.

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