Currency substitution and money demand in Euroland

Miguel de Freitas ()

No 11/2003, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: This papers tests the stability of the demand for money in the euro area in the context of an open economy. A sample consisting of quarterly data covering the 1982:2-1999:3 period is considered. The main finding is that the US long term rate of interest plays a significant role in the European money demand relationship. This result holds for different combinations of variables forming the vector auto-regressive system and suggests that currency substitution vis-à-vis the US dollar may be an important factor influencing the ECB monetary policy.

Keywords: EMU; Money Demand; International Currencies; Currency Substitution. (search for similar items in EconPapers)
JEL-codes: E41 E58 F41 (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-eec, nep-ifn and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Currency Substitution and Money Demand in Euroland (2010)
Journal Article: Currency Substitution and Money Demand in Euroland (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:nip:nipewp:11/2003

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