Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5055708 | Economic Modelling | 2009 | 6 Pages |
Abstract
Alternative panel data estimation methods are used to estimate the cointegrating equations for the demand for money (M1) for a panel of 14 Asian countries from 1970 to 2005. The effects of financial reforms are analyzed with estimates for two sets of sub-samples and two break dates. Our results show that money demand function has been stable and financial reforms are yet to have any significant effects. Since there is no evidence for instability in the demand for money, the central banks of these countries should use money supply, instead of the rate of interest, as the monetary policy instrument.
Related Topics
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Economics, Econometrics and Finance
Economics and Econometrics
Authors
B. Bhaskara Rao, Saten Kumar,