The role of income in money demand during hyper-inflation: the case of Yugoslavia

Zorica Mladenovic () and Bent Nielsen
Additional contact information
Zorica Mladenovic: Faculty of Economics, University of Belgrade

No 2009-W02, Economics Papers from Economics Group, Nuffield College, University of Oxford

Abstract: During extreme hyper-inflations productivity tends to fall dramatically. Yet, in models of money demand in hyper-inflation variables such as real income has been given a somewhat passive role, either assuming it exogenous or to have a negligible role. In this paper we use an empirical methodology based on cointegrated vector autoregressions to analyse data from the extreme Yugoslavian episode to investigate the role of income. The analysis suggests that even in extreme hyper-inflation the monetary variables and real income are simultaneously determined. The methodology enables a description of the short term adjustment of the variables considered.

Keywords: Cointegration; hyper-inflation; income; money-demand (search for similar items in EconPapers)
Pages: 23 pages
Date: 2009-03-27
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.nuffield.ox.ac.uk/economics/papers/2009/w2/MladenovicNielsen.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.nuffield.ox.ac.uk:443 (Bad file descriptor) (http://www.nuffield.ox.ac.uk/economics/papers/2009/w2/MladenovicNielsen.pdf [307 Temporary Redirect]--> https://www.nuffield.ox.ac.uk/economics/papers/2009/w2/MladenovicNielsen.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:nuf:econwp:0902

Access Statistics for this paper

More papers in Economics Papers from Economics Group, Nuffield College, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Maxine Collett ().