How Stable is the Money Demand Function in Turkey?Anýl Akçaðlayan and Ferda Dönmez Atbaþý The Icfai Journal of Applied Economics, 2008, vol. VII, issue 2, pages 7-18 Abstract: The paper attempts to test the stability of money demand relations for four money aggregates in Turkey. The paper uses the Johansen multivariate cointegration analysis over the data covering the period, 1990:01-2005:12. The findings indicate that there is a stationary long-run relationship between the different monetary aggregates, real income, domestic interest rates, foreign interest rates, and the real effective exchange rate. However, CUSUM and CUSUMQ stability tests showed that M1 and M2Y money demand functions are stable while M2 and M3 money demand functions are not stable over the period under consideration. The results show that the level of real income, domestic interest rate and real effective exchange rate play a significant role in determining the money demand. There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Access Statistics for this article More articles in The Icfai Journal of Applied Economics from ICFAI Press |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
Econpapers is hosted by the
Swedish Business School at Örebro University.