A stable demand for money despite financial crisis: The case of Venezuela

Hilde Bjørnland ()

No 12/2003, Memorandum from Oslo University, Department of Economics

Abstract: This paper investigates the demand for broad money in Venezuela, over a period of financial crisis and substantial exchange rate fluctuations. The analysis shows that there exist a long run relationship between real money, real income, inflation, the exchange rate and the domestic interest rate, that remains stable over major policy changes and large shocks. The long run properties emphasize that both inflation and exchange rate depreciations have negative effects on real money demand. The long run relationship is embedded in a dynamic equilibrium correction model with constant parameters.

Keywords: Money demand; open economy; cointegration; dynamic specifications; equilibrium correction models (search for similar items in EconPapers)
JEL-codes: C22 C32 E41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2003-03-14
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sv.uio.no/econ/english/research/unpubli ... 003/Memo-12-2003.pdf (application/pdf)

Related works:
Journal Article: A stable demand for money despite financial crisis: the case of Venezuela (2005)
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:hhs:osloec:2003_012

Access Statistics for this paper

More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().