The Demand for Money in an Unstable Economy: A Cointegration Approach for the Case of Mexico

Manuel Ramos-Francia
Additional contact information
Manuel Ramos-Francia: Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM)
Authors registered in the RePEc Author Service: Manuel Ramos Francia

No 9306, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: Recently, much of the empirical research on money demand has been centered on the question of whether the demand for money is a stable relationship. The importance of this issue is underscored when modeling the demand for narrow money in countries such as Mexico, given that its economic environment is relatively more volatile than in industrialized economies. In this paper, we apply the Hendry methodology to develop a constant, data coherent demand for money equation for Mexico. The obtained specification appears to have desirable statistical properties as well as being remarkably constant in the face of a relatively volatile economic environment.

Pages: 61 pages
Date: 1993-12
References: Add references at CitEc
Citations: View citations in EconPapers (2)

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:cie:wpaper:9306

Access Statistics for this paper

More papers in Working Papers from Centro de Investigacion Economica, ITAM Contact information at EDIRC.
Bibliographic data for series maintained by Diego Dominguez ().