The demand for money in a small open economy: The case of Switzerland

The paper uses cointegration analysis to investigate the demand for money in Switzerland in the context of an open economy. It considers the general process of financial asset substitution and tests for the relevance of an exchange rate and a foreign interest rate variable in a conventional money demand equation. The results show that the variables entering into the demand for either monetary base or narrow money equation may not form a cointegrated system unless the exchange rate or foreign interest rate variable is included. This provides support to both the currency substitution and capital mobility hypotheses.     

The Information Contents of Aggregated Money Demand in the EMU

Estimates of aggregated and disaggregated demand-for-money functions in 7 EMU member states show that the aggregated function slightly outperforms the disaggregated functions in explaining the European demand for M3. The aggregated function appears to contain some additional information on money demand in The Netherlands and, to a lesser extent, in France. For the other countries investigated in this study information on aggregated European money demand does not add much to the explanation of demand for money in the individual countries.     

International comparisons of money demand

Many studies of the demand for money, covering a wide variety of economies, have demonstrated the importance of financial innovations and shifts in monetary policy regimes, but they have also illustrated the difficulty of measuring and assessing such changes. Because innovations and regime shifts have differed markedly across countries, international comparisons can help identify their effects. This paper reviews the literature on money demand comparisons, focusing primarily on industrial countries. It finds that innovations have had widespread effects, but also that the demand for money is not generally less stable now than it was before those changes occurred.     

Wealth and the demand for money: Empirical evidence for the Netherlands and Belgium

Summary This paper examines the impact of wealth on the demand for money in The Netherlands and Belgium. The empirical analysis reveals a substantial influence of wealth on the demand for money. For The Netherlands, incorporating wealth effects mitigates the volatility of the monetary picture. For Belgium this is not the case, indicating that interest and inflation rates are very important for understanding the monetary developments.We are indebted to Michel Dombrecht of De Nationale Bank van België for providing the data on wealth for Belgium. Helpful comments by Professors S.K. Kuipers and F.C. Palm are gratefully acknowledged.     

How stable is M2 money demand function in Japan?

The cointegrating property of the demand for money in Japan has been investigated by several researchers who have provided mixed results. None has investigated its stability. In this paper we employ the ARDL approach combined with CUSUM and CUSUMSQ tests to show that not only M2 is cointegrated with income and interest rate, but the estimated relation is stable.     

Dynamic panel cointegration approaches to the estimation of money demand functions

This paper investigates properties of the money demand functions of Group of Six (G6) member countries (Canada, France, Italy, Japan, U.K., and U.S.) using the estimation and inference techniques of panel cointegration. Empirical analyses are conducted by estimating money demand equations of G6 countries individually and as a whole, allowing heterogeneity in individual specific fixed effects across countries through dynamic, nonstationary panel estimation techniques. By using recently developed panel cointegration techniques, the paper contributes to the literature of money demand studies by improving the power performance of the relevant estimation and inference procedures. It reports fully modified OLS (FMOLS) estimation results of the money demand model for different data frequencies, to find varying signs and magnitudes of real income, interest rates and inflation elasticities of money demand for G6 nations.     

China's money demand in a cointegrating vector error correction model

This paper estimates open-economy macroeconomic models of the Chinese economy allowing for the structural change caused by the 1992 reforms. Unrestricted vector autoregressions, VARs, and cointegrating vector error correction models, VECMs, are estimated on quarterly data for the early reform period 1980–1992, and the late reform period, 1993–2018. Two long-run cointegrating vectors are identified, which can be interpreted as a long-run, money demand function and a long-run IS type income equation driven by export demand. The 1992 reforms involved a move to a more market oriented system and a transformation of financial institutions and this seems to be responsible for a change in the direction of effect of interest rates in both the IS and LM relationships.     

Scale variable specification in a money demand function for Malaysia

We investigate what scale variable is most appropriate in the money demand function for Malaysia. Candidates include income, consumption, disposable income, and domestic absorption and these are considered for simple sum M1 and M2 and for Divisia M1 and M2. Non-nested tests and other model selection criteria such as R² are used. The non-nested tests for the M1 aggregates are inconclusive but more support is given for income as the scale variable for the M2 aggregates, especially for Divisia M2. The other procedures also show that income is preferred for M2 and some support is also given for income for the M1 aggregates.     

Divisia monetary aggregates and money demand for Malaysia

Divisia M1 and M2 are constructed for Malaysia. Unlike M1, Divisia M2 shows significant differences in both level and growth rates from its simple sum counterpart. We also compare these Divisia measures to simple sum M1 and M2 in a money demand function. Using error correction models, we examine short-run dynamics between these monetary aggregates and money demand determinants such as inflation, domestic and foreign interest rates, financial wealth, and income. We find that Divisia M2 is the most appropriate monetary aggregate of the four candidates to track money demand in Malaysia and should be used when conducting monetary policy.     

Currency Substitution and Money Demand in Euroland

This paper tests the stability of the demand for money in the euro-area in the context of an open economy. A sample consisting of quarterly data covering the 1982:2–1999:3 period is considered. The main finding is that the U.S. dollar long-term interest rate plays a significant role in the European money demand relationship. This result holds for different combinations of variables forming the vector auto-regressive system and suggests that international monetary interdependency may be an important factor influencing the ECB monetary policy.This paper draws on an earlier version and was prepared while the author was at the Bank of Portugal (the usual disclaimer applies). It was presented at the 2003 Meeting of the Economic Modelling Network. The author acknowledges Luis Catela Nunes, Carlos Santos, Carlos Robalo Marques, Nuno Alves, and an anonymous referee for their helpful suggestions.     

The Stability of European Money Demand: An Investigation of M3H

The paper assesses the stability and predictive performance of a European money demand function as compared to national money demand functions. With respect to the explanatory accuracy, the national functions perform better than the aggregated function. Examination of the residuals of the national money demand equations indicates that currency substitution is not the major cause for the stability of the aggregated money demand function. The aggregate relation mainly seems to reflect German money demand. This conclusion is supported by the instability of aggregated money demand resulting from the exclusion of Germany from the aggregate.     

从文化差异中寻求跨国经营优势

本文认为我国目前选择的货币政策 ,因为其特殊的货币供给机理中存在内滞 ,从而导致货币政策收效甚微 ,因此必须采取综合措施消除内滞。     

中小企业融资困难研究与出路探讨

本文着重围绕着中小企业融资难的问题展开讨论 ,并为解决中小企业 ,特别是就高新技术中小企业的融资出路问题 ,提出了 :一 ,制定、健全法律法规、政策扶植政策、建立银行合理的金融体系的建议 ;二 ,建议设立适应于帮助中小企业发展的中小企业管理局或部门 ,延伸到从中央到地方、到社区设立三级管理网络及担保体系 ,并实施贷款担保等功能。最后为中小企业融资 ,对比国外的经验 ,探讨了一些融资方法     

假币没收之若干法律问题反思

在对待非恶意的假币持有人时,"没收"这一处理方式具有不合理性。在此情形下,对假币之没收有间接侵犯公民财产权之嫌。作为假币的受害人,普通民众有权要求国家给予适当的补偿。而国家能够对假币进行补偿也可以体现其对公民财产权之尊重,同时也是其责任的应有之担当。     

The demand for money in the Netherlands revisited

Summary This article presents an analysis of demand for money in The Netherlands, both at the aggregate level and the sectoral level. Special attention is devoted to the distinction between short and long run demand. Deviations of the long-run relationships are modelled by means of the error correction mechanism. The elasticities for aggregate demand are consistent with the findings for the money demand by the household and business sectors and correspond reasonably well with those derived from other studies. The estimated equations describe the rise in theM1- andM2-ratio in the 1980s in a satisfactory way, although forM2 from 1987 onwards there is a discrepancy between actual and fitted values. The disaggregated analysis shows that the behaviour of the business sector seems to be responsible for this.The authors are indebted to Professor S.K. Kuipers for his comments on an earlier draft.     

The behavior of money demand in the Chinese hyperinflation

In this paper I study the behavior of money demand during the episode of hyperinflation that occurred in China after World War II. I consider two popular and competing money demand specifications – the log–log and the semi-log – and show that the log–log performs better than the semi-log in its ability to track the behavior of the money demand. The choice between the two specifications is of great importance, as it implies that welfare cost estimates are very different for hyperinflation. The findings also contribute to the understanding of Cagan’s paradox and the failure of Cagan inflationary finance models. The paradox might be attributable to the popular semi-log schedule for money demand, and the log–log schedule might be an appropriate form for the analysis of hyperinflation.     

我国货币市场和资本市场有效沟通问题的实证研究

货币市场和资本市场是我国金融体系的重要组成部分。有效沟通两个市场,促进两个市场共同发展,可以有力支持国有企业改革,促进企业产权流动和重组,优化产业结构,进而促进社会主义市场经济的发展。因此在现阶段,研究如何增强两个市场的有效沟通和联系,以便在新世纪发展大格局中     

我国热钱流入的影响因素分析

本文在国际学术界关于国际资本流动影响因素的现有理论基础上,构建了我国热钱流入影响因素的模型,对利率、汇率、通货膨胀率、经济增长等因素对我国热钱流动的影响进行了计量分析,并提出相关政策建议。