The Demand for Money in the European Union: the Role of Germany’s Interest Rate

Yonghao Pu and George Zis

Chapter 4 in Economic Integration, 2002, pp 58-76 from Palgrave Macmillan

Abstract: Abstract Artis et al. (1993) Kremers and Lane (1990) and Monticelli and Straus-Kahn (1993) have investigated the existence of a stable EU demand for money function, while Cassard et al. (1994) have estimated the demand for money functions involving aggregation only across the core countries of the Exchange Rate Mechanism (ERM). All four studies’ empirical findings suggest that a stable function is identifiable either at the EMS or the core ERM level. However, aspects of these studies raise questions about the robustness of the statistical evidence presented and about the consistency of their theory. This chapter discusses some of the issues relating to the estimation of an EU money demand function and presents new empirical evidence to indicate the existence of stable EU demand functions for both M1 and M2.

Keywords: Exchange Rate; Monetary Policy; Money Supply; Money Demand; Exchange Rate Change (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations:

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:pal:palchp:978-0-230-62925-7_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230629257

DOI: 10.1057/9780230629257_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().