La demanda de dinero en una economía dolarizada. Una estimación para Uruguay

Conrado Brum, Elizabeth Bucacos () and Patricia Carballo ()
Additional contact information
Elizabeth Bucacos: Banco Central del Uruguay
Patricia Carballo: Banco Central del Uruguay

No 2010013, Documentos de trabajo from Banco Central del Uruguay

Abstract: Under the monetary regime put into practice since 2007 in Uruguay, which uses interbank interest rate as an instrument, liquidity management has become more and more important. As a result, money demand estimation is still essential in order to project supply and demand liquidity factors. This paper adjusts a model for real money demand by adding to traditional explanatory variables – real output and nominal interest rate – an additional variable that measures relative volatility of real returns of a dollar-denominated fixed-income substitute asset and money itself. In the long-run relationship found, real money balances are positively related with real output with unitary elasticity and those balances are inversely related with nominal interest rate. Besides, the volatility variable has a positive influence on money demand and acts as an exogenous variable. The error-correction model specified satisfies usual stability requisites.

Keywords: Money demand; portfolio; cointegration; Uruguay; Demanda de dinero; portafolio; cointegración; Uruguay (search for similar items in EconPapers)
JEL-codes: C22 E41 G11 N16 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2010-09
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.bcu.gub.uy/Estadisticas-e-Indicadores/ ... 0Trabajo/13.2010.pdf First version, 2010 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bku:doctra:2010013

Access Statistics for this paper

More papers in Documentos de trabajo from Banco Central del Uruguay Biblioteca Especializada. Banco Central del Uruguay. Diagonal Fabini 777, Montevideo-Uruguay. CP 11100. Contact information at EDIRC.
Bibliographic data for series maintained by Biblioteca Especializada ().