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Long-Run Elasticities of the Demand for Money in Korea:Evidence from Cointegration Analysis |
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| Authors: | Professor Mohsen Bahmani-Oskooee Hyun-Jae Rhee |
| Affiliation: | The University of Wisconsin-Milwaukee |
| Abstract: | Most recent studies have employed the cointegration technique to investigate the long-run stability of the demand for money. This study considers the case of Korea. It is shown that in the long-run while Ml monetary aggregate is cointegrated with income, interest rate, and the exchange rate, M2 is not. However, results from error correction models reveal that both Ml and M2 have short-run relationship with their determinants. [E41] |
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