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Interest-free and Interest-bearing Money Demand: Policy Invariance and Stability

Listed author(s):
  • Amir Kia
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    This paper, using quarterly Iranian data for the period of 1966-1998, extends the literature by investigating the stability of the interest-free money demand function. The study also examines the stability of economic agents' behavior in demanding interest-bearing and interest-free money. It was found, contrary to interest-bearing demand or money, both short- and long-run demand for interest-free money functions are stable and their coefficients are invariant with respect to policy and other exogenous shocks as well as changes in regime.

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    File URL: http://economics.emory.edu/home/assets/workingpapers/kia_01_07_paper.pdf
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    Paper provided by Department of Economics, Emory University (Atlanta) in its series Emory Economics with number 0107.

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    Date of creation: Aug 2001
    Handle: RePEc:emo:wp2003:0107
    Contact details of provider: Web page: http://economics.emory.edu/home/journals/
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