Modelling Money Demand: Further Evidence from an International Comparison

Fredj Jawadi and Ricardo Sousa

No 23/2012, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: This paper aims at estimating money demand for the euro area, the US and the UK using a dynamic ordinary least squares estimator (DOLS). Our findings show that: (i) wealth effects on money demand are important in the euro area and the UK; (ii) the impact of changes in the interest rate on real money holdings is negative and small; (iii) goods are a reasonable alternative to money; and (iv) international currency substitution has a major influence on the behaviour of real money demand in the UK.

Keywords: Money demand; dynamic OLS. (search for similar items in EconPapers)
JEL-codes: C2 D12 E21 E44 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-mon
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Journal Article: Modelling money demand: further evidence from an international comparison (2013)
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