Location of Repository

Demand for money in transition economy: the case of the Czech Republic 1993-2001

By Luboš Komárek and Martin Melecky

Abstract

In this paper we strive to present a somewhat internationalised view of demand for money as applied to the Czech Republic. We extend the traditional money demand function, consisting purely of domestic variables, to include certain foreign determinants that probably affect the demand for money in a small open transition economy. We do so in the case of both narrow and broad money. For the purposes of generalisation and robust estimates we employ several estimation techniques, namely the Johansen procedure, ARDL, DOLS and ADL. We also consider the aspect of the stability of such estimates. Finally, we analyse the possible effects on prices and output of disequilibria on money market. We have found that a liquidity gap probably has a significant influence on both prices and output

Topics: HG
Publisher: University of Warwick, Department of Economics
Year: 2001
OAI identifier: oai:wrap.warwick.ac.uk:1572

Suggested articles

Preview

Citations

  1. (1992). A Dynamic Simulation Analysis of Currency Substitution in an Optimizing Framework with Transaction Costs.
  2. (1992). A Model of Exchange Rate Determination Under Currency Substitution and Rational Expectations. doi
  3. (1993). A Simple Estimator of Cointegrating Vectors doi
  4. (1996). Adoption of Financial Technologies: Implications for Money Demand and Monetary Policy. doi
  5. (1996). Aggregate Money Demand Functions: Empirical Applications in Cointegrated Systems. doi
  6. (1995). Applied Econometric Time Series. doi
  7. (1998). Credit and Asymmetric Effects of Monetary Policy in Six EU Countries: an Overview. De Nederlandsche Bank NV
  8. (1992). Currency Substitution and the Regressivity of Inflationary taxation. doi
  9. (1995). Currency Substitution in Eastern Europe. doi
  10. (2001). Currency Substitution in Latin America: Lessons from the 1990s. mimeo doi
  11. (2000). Currency Substitution, Unofficial Dollarization and Estimates of Foreign Currency Held Abroad: The Case of Croatia: doi
  12. (1992). Currency Substitution. doi
  13. (2001). Další pohled na mikroekonomickou dimenzi měnového kurzu. Zatím nepublikováno,
  14. (1988). Disequilibrium Buffer-Stock Models: A Survey. doi
  15. (1995). Dollarization in Transition Economies: Evidence and Policy Implications. International Monetary Fund Working Paper, doi
  16. (1998). Empirical Modeling of Money Demand. doi
  17. (2001). Financial Policy and the Prevention of Financial Crises in Emerging Market Countries. doi
  18. (1990). Foreign Inflation Transmission under Flexible Exchange Rates and Currency Substitution. doi
  19. (1990). Fund Working Paper, IMF Working Papers 91/45, doi
  20. (2000). Here, Dollars, Dollars…” – Estimating Currency Demand and Worldwide Currency Substitution. International Finance Discussion Papers no.657, Board of Governors of the Federal Reserve System. doi
  21. (1997). Hysteresis in a Simple Model of Currency Substitution. doi
  22. (1995). Liquidity Models doi
  23. (2000). Modelling Dynamic systems using PcGive volume II. Timerlake Consultants Ltd.
  24. (1998). Money Demand Stability: Evidence from Spain. doi
  25. (2000). Poptávka po oběživu. Finance a úvěr 12/2000,
  26. (1995). Poptávka po penězích a ražebné v období transformace. Finance a úvěr,
  27. (1995). Poptávka po penězích v české ekonomice. Finance a úvěr 5/1995.
  28. (1985). Portfolio Theory and Currency Substitution. doi
  29. (2001). Regime switching and transmission mechanisms of monetary policy in Japan at low interest rates (source,
  30. (2001). Stabilita dlouhodobé poptávky po široce definovaných penězích v otevřené ekonomice: případ ČR 1994-2000. ČNB VP,
  31. (1999). Survey of Literature on Demand for Money: Theoretical and Empirical Work with Special Reference to Error-Correction Models. doi
  32. (1990). Taking Money Seriously. Cambridge doi
  33. (1992). Tests for Parameter Instability in Regressions with I(1) Processes. doi
  34. (1992). The Currency Substitution and Inflation in Peru. doi
  35. (1997). The Demand for Broad Money in the United Kingdom, 1878-1993. Board of Governors of the Federal Reserve System, doi
  36. (1999). The Demand for M3 in Euro area. doi
  37. (1999). The Demand for Money in Austria. Economic Working Paper Archive at WUSTL, Macroeconomics wuwpma 9902.
  38. (1991). The Demand for Money in Developing Countries: Assessing the Role of Financial Innovation. doi
  39. (1992). The Inflation Discipline of Currency Substitution. doi
  40. (1985). Two Concepts of International Currency Substitution.
  41. (1997). Understanding the Welfare Implications of Currency Substitution. doi
  42. (1995). Using Cointegration Analysis in Econometric Modelling. doi
  43. (1997). Vazba mezi peněžní zásobou, agregátní nabídkou a nominálním domácím produktem ČR v letech 1992-1996. Bankovnictví 16/97.
  44. (1997). Working with Microfit 4.0. doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.