A panel data approach to the demand for money and the effects of financial reforms in the Asian countries

B. Rao and Saten Kumar

Economic Modelling, 2009, vol. 26, issue 5, 1012-1017

Abstract: Alternative panel data estimation methods are used to estimate the cointegrating equations for the demand for money (M1) for a panel of 14 Asian countries from 1970 to 2005. The effects of financial reforms are analyzed with estimates for two sets of sub-samples and two break dates. Our results show that money demand function has been stable and financial reforms are yet to have any significant effects. Since there is no evidence for instability in the demand for money, the central banks of these countries should use money supply, instead of the rate of interest, as the monetary policy instrument.

Keywords: Pedroni; Mark; and; Sul; and; Breitung; methods; Demand; for; money; Asian; countries; Effects; of; financial; reforms; and; choice; of; monetary; policy; instruments (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (57)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264-9993(09)00064-9
Full text for ScienceDirect subscribers only

Related works:
Working Paper: A Panel Data Approach to the Demand for Money and the Effects of Financial Reforms in the Asian Countries (2008)
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:eee:ecmode:v:26:y:2009:i:5:p:1012-1017

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().