Currency substitution and the transactions demand for money in Vietnam

Michael Goujon (), Sylviane Guillaumont Jeanneney () and Christopher Adam ()

No 200228, Working Papers from CERDI

Abstract: We estimate the demand for money in Vietnam during the 1990s within a framework which distinguishes between currency substitution and portfolio dimensions of dollarization. This leads to a representation for the demand function in which the long-run income elasticity of demand is no longer constant but is a function of the expected rate of depreciation. We find evidence for currency substitution only in the long-run, and for portfolio effects only in the short-run. We interpret this as being consistent with the existence of costs associated with changing the transactions technology.

Keywords: Currency Substitution; Demand for Money; Dollarization; Vietnam. (search for similar items in EconPapers)
Date: 2002
View list of references

Downloads: (external link)
http://publi.cerdi.org/ed/2002/2002.28.pdf (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: http://EconPapers.repec.org/RePEc:cdi:wpaper:193

Access Statistics for this paper

More papers in Working Papers from CERDI
Contact information at EDIRC.
Series data maintained by Vincent Mazenod ().