Divisia Monetary Aggregates, the Great Ratios, and Classical Money Demand Functions

2014 ◽  
Vol 46 (1) ◽  
pp. 229-241 ◽  
Author(s):  
APOSTOLOS SERLETIS ◽  
PERIKLIS GOGAS
Keyword(s):  
Money Demand ◽  
Monetary Aggregates ◽  
Demand Functions ◽  
Divisia Monetary Aggregates

scholarly journals Stability of Money Demand Function in Nepal

2013 ◽  
Vol 3 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Siddha Raj Bhatta
Keyword(s):  
Money Demand ◽  
Demand Function ◽  
Annual Data ◽  
Money Demand Function ◽  
Data Set ◽  
Monetary Aggregates ◽  
Demand Functions ◽  
Real Gdp ◽  
Long Run ◽  
Stability Issue

This paper examines the long-run stability issue of money demand function in Nepal using the annual data set of 1975-2009 by using the recently developed ARDL modelling to cointegration popularized by Pesaran and Shin (1999). The bounds test shows that there exists the long-run cointegrating relationship among demand for real money balances, real GDP, and interest rate in case of both narrow and broad monetary aggregates. Further, the CUSUM and CUSUMSQ test reveal that both the long-run narrow and broad money demand functions are stable. The results show that demand for money balance in Nepal is a stable and predictable function of a few variables and the central bank can rely on the monetary aggregates as intermediate targets for achieving the broad economic objectives.DOI: http://dx.doi.org/10.3126/bj.v3i1.7508 Banking Journal Vol.3(2) 2013 pp.1-27  

scholarly journals INCORPORATING RISKY ASSETS IN DIVISIA MONETARY AGGREGATES

2003 ◽  
Vol 3 (1) ◽  
pp. 98-120
Author(s):  
Leigh Drake ◽  
Andy Mullineux ◽  
Juda Agung
Keyword(s):  
Mutual Funds ◽  
Money Demand ◽  
Demand Function ◽  
Monetary Aggregate ◽  
Risky Assets ◽  
Monetary Aggregates ◽  
Divisia Monetary Aggregates ◽  
Long Run ◽  
Causality Tests ◽  
Monetary Assets

Capital uncertain or risky assets are typically excluded from traditional broad monetary aggregates. Barnett et al (1997), however, extend the Divisia aggregation methodology to incorporate such assets. In addition, recent evidence provided by Drake et al (1998) suggests that risky assets are close substitutes for monetary assets. This paper constructs “wide” Divisia monetary aggregates which include risky assets such as unit trusts (mutual funds), equities and bonds, and contrasts their empirical properties with conventional Divisia and simple sum broad money aggregates. The key finding in the paper is that a “wide” monetary aggregate, which incorporates unit trusts, exhibits a stable long run and dynamic money demand function, has good leading indicator properties in the context of Granger causality tests, and tends to outperform all other aggregates on the basis of non-nested tests.JEL : E41, C43, E52 

Divisia monetary aggregates and money demand for Malaysia

2005 ◽  
Vol 15 (6) ◽  
pp. 1137-1153 ◽  
Author(s):  
Jauhari Dahalan ◽  
Subhash C. Sharma ◽  
Kevin Sylwester
Keyword(s):  
Money Demand ◽  
Monetary Aggregates ◽  
Divisia Monetary Aggregates

scholarly journals FRACTIONAL COINTEGRATION AND AGGREGATE MONEY DEMAND FUNCTIONS*

2005 ◽  
Vol 73 (6) ◽  
pp. 737-753 ◽  
Author(s):  
GUGLIELMO MARIA CAPORALE ◽  
LUIS A. GIL-ALANA
Keyword(s):  
Money Demand ◽  
Fractional Cointegration ◽  
Demand Functions
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