EconPapers    
Economics at your fingertips  
 

Money Demand and Disinflation in Selected CEECs during the Accession to the EU

Jarko Fidrmuc

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: A panel data set for six countries (Czech Republic, Hungary, Poland, Romania, Slovakia, and Slovenia) is used to estimate money demand with panel cointegration methods over the recent disinflation period. The basic money demand model is able to convincingly explain the long-run dynamics of M2 in the selected countries. However, money demand is found to have been significantly determined by the euro area interest rates and the exchange rate against the euro, which indicates possible instability of money demand functions in the CEECs. Therefore, direct inflation targeting is an appropriate monetary regime before the eventual adoption of the euro.

Keywords: Money demand; panel unit root tests; panel cointegration; direct inflation targeting; CEECs (search for similar items in EconPapers)
JEL-codes: C23 E41 E58 (search for similar items in EconPapers)
Date: 2006-10
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac, nep-mon and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://epub.ub.uni-muenchen.de/1232/1/lmu200631-MoneyDemand.pdf (application/pdf)

Related works:
Journal Article: Money demand and disinflation in selected CEECs during the accession to the EU (2009) Downloads
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:lmu:muenec:1232

Access Statistics for this paper

More papers in Discussion Papers in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().

 
Page updated 2025-03-22
Handle: RePEc:lmu:muenec:1232