Long-Run and Short-Run Demand for Money: Reply and Further Note

1968 ◽  
Vol 76 (6) ◽  
pp. 1240-1243
Author(s):  
Gregory C. Chow
Keyword(s):  
Demand For Money ◽  
Long Run ◽  
Short Run

scholarly journals Money Demand Function for Nepal: An Empirical View from Expenditure Component

2019 ◽  
pp. 12-25
Author(s):  
Pujan Adhikari
Keyword(s):  
Interest Rate ◽  
Money Demand ◽  
Capital Formation ◽  
Consumption Expenditure ◽  
Demand For Money ◽  
Final Consumption ◽  
On Demand ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Short Run

This paper examines the long run and short-run dynamics relationship between broad money, consumption expenditure, capital stock and interest rate in Nepal over the period of 1975-2017. This paper employs ARDL bound testing approach for co-integration between the broad money demand and its determinants. Result reveals the evidence of cointegration among the variables. The empirical results show that the demand for money is affected by the interest rate and final consumption expenditure both in the long run and short-run. However, the gross fixed capital formation has no impact on demand for money in the long-run and short-run as well. On contrast, interest rate is positively associated with Broad money demand, which is not consistent with theoretically. Positive association of money demand with interest rate shows that demand for money function is instability in Nepal. Thus, this study suggests that policy maker to correct price fluctuation through the control of various expenditure components, particularly, real final consumption expenditure might be an important strategy in the long run. However, the gross fixed capital formation has no impact on demand for money in the long-run.

scholarly journals Do Exchange Rate Changes Have Asymmetric or Symmetric Effects on the Demand for Money in the Gambia

2019 ◽  
Vol 9 (4) ◽  
pp. 276
Author(s):  
Kebba Bah ◽  
Karamat Khan ◽  
Artif Taufiq Nurrachman Aziez ◽  
Ali Kishwar
Keyword(s):  
Exchange Rate ◽  
The Gambia ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
On Demand ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Short Run ◽  
Exchange Rate Changes ◽  
The Relationship

In trying to explain the relationship between exchange rate and demand for money researchers have applied different models. In this paper, we applied both the linear and nonlinear ARDL to check the effects of exchange rate changes on the demand for money (M1 and M2) in The Gambia. The result revealed that the demand for money is cointegrated with its determinants and have a stable short-run relationship. It also revealed that exchange rate changes have only short-run asymmetric effects on demand for money (M1 or M2) but don’t have long-run effects.

ECONOMIC UNCERTAINTY, MONETARY UNCERTAINTY, AND THE DEMAND FOR MONEY IN AFRICA: AN ASYMMETRY ANALYSIS

2020 ◽  
Vol 20 (02) ◽  
pp. 2050007
Author(s):  
MOHSEN BAHMANI-OSKOOEE ◽  
AUGUSTINE C. ARIZE
Keyword(s):  
Money Demand ◽  
Region Of Interest ◽  
Output Volatility ◽  
Economic Uncertainty ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Nonlinear Ardl ◽  
Uncertainty Measures ◽  
Long Run ◽  
Short Run

Economic uncertainty and monetary uncertainty are two uncertainty measures that are said to affect the demand for money in any country and our region of interest, Africa, is no exception. In this paper, we take an additional step and argue that changes in any uncertainty measure could have asymmetric effects on the money demand. After applying the linear and nonlinear ARDL approaches to each of the 13 African nations, while we find the short-run effects of both uncertainty measures to be asymmetric, long-run asymmetric effects were discovered in limited number of countries. We also discovered that monetary volatility has more long-run effects than output volatility which implies that a steady and not so erratic money growth will have its predictive impact on the African economies.

scholarly journals META-ANALYSIS OF MONEY DEMAND IN INDONESIA

2012 ◽  
Vol 15 (1) ◽  
pp. 41-62
Author(s):  
Galih Riyandi
Keyword(s):  
Money Demand ◽  
Opportunity Cost ◽  
Fixed Effects ◽  
Income Elasticity ◽  
Meta Analysis ◽  
Demand For Money ◽  
Cost Elasticity ◽  
Classification Code ◽  
Long Run ◽  
Short Run

Theory and empirical study about demand for money is the key feature in macroeconomics theory. The study about demand for money in Indonesia has been developing with various techniques. Its result in various analyses can be difficult in understanding behaviour of demand for money in Indonesia. This paper aims to find out the tendency of demand for money in Indonesia by analyzing long run and short run income elasticity and opportunity cost elasticity. We use fixed effects meta-analysis and unweighted average meta-analysis. The result shows that income elasticity and opportunity cost elasticity are consistent with theory of money demand. That result can be used as an empirical foundation to future study about demand for money in Indonesia.  Keywords: demand for money, meta analysis, fixed effects.JEL Classification code: E41, E52

Comment on the Long-Run and Short-Run Demand for Money

1968 ◽  
Vol 76 (6) ◽  
pp. 1234-1240 ◽  
Author(s):  
Karl Brunner ◽  
Allan H. Meltzer
Keyword(s):  
Demand For Money ◽  
Long Run ◽  
Short Run

On the Long-Run and Short-Run Demand for Money

1966 ◽  
Vol 74 (2) ◽  
pp. 111-131 ◽  
Author(s):  
Gregory C. Chow
Keyword(s):  
Demand For Money ◽  
Long Run ◽  
Short Run

scholarly journals ANALISIS META PERMINTAAN UANG DI INDONESIA

2012 ◽  
Vol 15 (1) ◽  
pp. 39-60
Author(s):  
Galih Riyandi
Keyword(s):  
Opportunity Cost ◽  
Fixed Effects ◽  
Income Elasticity ◽  
Meta Analysis ◽  
Demand For Money ◽  
Cost Elasticity ◽  
Classification Code ◽  
Long Run ◽  
Short Run ◽  
Empirical Foundation

Theory and empirical study about demand for money is the key feature in macroeconomics theory. The study about demand for money in Indonesia has been developing with various techniques. Its result in various analyses can be difficult in understanding behaviour of demand for money in Indonesia. This paper aims to find out the tendency of demand for money in Indonesia by analyzing long run and short run income elasticity and opportunity cost elasticity. We use fixed effects meta-analysis and unweighted average meta-analysis. The result shows that income elasticity and opportunity cost elasticity are consistent with theory of money demand. That result can be used as an empirical foundation to future study about demand for money in Indonesia.Keywords: demand for money, meta analysis, fixed effects.JEL Classification code: E41, E52

scholarly journals An Investigation into the Interest Elasticity of Demand for Money in Developing Countries: A Panel Data Approach

2017 ◽  
Vol 9 (3) ◽  
pp. 69 ◽  
Author(s):  
Felix S. Nyumuah
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Interest Rate ◽  
Equatorial Guinea ◽  
African Countries ◽  
Demand For Money ◽  
Elasticity Of Demand ◽  
Long Run ◽  
Short Run ◽  
The Interest Rate

The issue as to whether the interest rate influences the demand for money in developing countries is still controversial. The aim of this study is to attempt to resolve this controversy. The study uses panel data from eight African countries to look at the interest elasticity of demand for money in developing countries. The countries used in the study are Angola (ANG), Equatorial Guinea (EQG), Gambia (GMB), Guinea-Bissau (GBS), Kenya (KNY), Mali (MLI), Nigeria (NGR) and Uganda (UGD). Overall, the study finds the interest rate to be inelastic in the short run but elastic in the long run. This finding suggests that monetary policy is ineffective in developing countries in the long run.

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