Stability of money demand in Switzerland: A comparison of the M2 and M3 cases

Michel Peytrignet () and Christof Stahel ()
Additional contact information
Michel Peytrignet: Swiss National Bank, PO Box, CH-8022 Zurich, Switzerland
Christof Stahel: Swiss National Bank, PO Box, CH-8022 Zurich, Switzerland

Empirical Economics, 1998, vol. 23, issue 3, 437-454

Abstract: Long-run parameters of money demand functions for Switzerland's M2 and M3 aggregate are estimated and their stability investigated. For both aggregates a single stable cointegrating vector is found. Around these long-run relationships a single-equation model for m2 and a single-equation model for cpi is built respectively for M2 and M3, and both estimated models are found to be stable. Testing forecast performance, the cpi model seems to be superior to the m2 model, providing some positive signs that the M3 model is stable in the sense that it does not suffer from a structural break during the period of estimation.

Keywords: Demand; for; Money; ·; cointegration; ·; sequential; reduction (search for similar items in EconPapers)
JEL-codes: C32 E41 E52 (search for similar items in EconPapers)
Date: 1998-09-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://link.springer.de/link/service/journals/00181/papers/8023003/80230437.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

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:spr:empeco:v:23:y:1998:i:3:p:437-454

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().