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Explaining money demand in China during the transition from a centrally planned to a market-based monetary system

Author

Listed:
  • Anne-Laure Delatte

    (CEPR - Center for Economic Policy Research - CEPR)

  • Julien Fouquau

    (NEOMA - Neoma Business School)

  • Carsten A. Holz

Abstract

Fundamental changes in institutions during the transition from a centrally planned to a market economy present a formidable challenge to monetary policy decision makers. For the case of China, we examine the institutional changes in the monetary system during the process of transition and develop money demand functions that reflect these institutional changes. We consider seasonal unit roots and estimate long-run, equilibrium money demand functions, explicitly taking into consideration the changes in the institutional ...

Suggested Citation

  • Anne-Laure Delatte & Julien Fouquau & Carsten A. Holz, 2014. "Explaining money demand in China during the transition from a centrally planned to a market-based monetary system," Post-Print hal-01160174, HAL.
  • Handle: RePEc:hal:journl:hal-01160174
    DOI: 10.1080/14631377.2014.937099
    Note: View the original document on HAL open archive server: https://hal-neoma-bs.archives-ouvertes.fr/hal-01160174
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Monetary system; money demand; cointegrating time-varying smooth transition regression model; seasonal unit-root test;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P24 - Economic Systems - - Socialist Systems and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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