Testing for Long Run Money Demand Functions in Greece Using Cointegration Techniques

Costas Karfakis

No 151, Working Papers from University of Sydney, School of Economics

Abstract: Long run money demand functions for M1 and M3 are tested by means of the cointegration methodology developed by Johansen (1988). The results support the existence of an economically meaningful cointegrating vector for both measures of monetary aggregates. The rejection of a unit price elasticity of money demand suggests that money is not neutral in Greece. The significance of interest rate elasticity of M3 implies that the aggregate is subject to control through policy-induced interest rate movements and thus can serve as a useful monetary target.

Date: 1990-11
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2123/7592

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:syd:wpaper:2123/7592

Access Statistics for this paper

More papers in Working Papers from University of Sydney, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Vanessa Holcombe ().