The Stability of Money Demand: Some Evidence from Turkey

Chaido Dritsaki and Melina Dritsaki

The IUP Journal of Bank Management, 2012, vol. XI, issue 4, 7-28

Abstract: Demand for money is an important macroeconomic relationship. Its stability has implications for the choice of monetary policy targets. The current study examines the stability of money demand function in Turkey from January 1989 to May 2010. More specifically, it estimates the demand for narrow money in Turkey and evaluates its robustness and stability. Considering the economic reforms and financial crises in Turkey, it is found that there exists a well determined instability for money demand and its dynamics, which is adequately captured by cointegration and error correction models. Finally, the conclusions from the estimation of the impulse response functions show that interest rate causes the largest shift in money demand as well as in industrial production.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (6)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:icf:icfjbm:v:11:y:2012:i:4:p:7-28

Access Statistics for this article

More articles in The IUP Journal of Bank Management from IUP Publications
Bibliographic data for series maintained by G R K Murty ().