Money demand in Hungary and Poland |
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Authors: | Claudia M. Buch |
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Affiliation: | Centre for North South Economic Research, University of Cagliari and CRENoS , V. S. Ignazio 78, 09123 Cagliari, Italy |
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Abstract: | This paper analyses the determinants and the stability of money demand functions in Hungary and Poland, using an error-correction framework. The null of stable cointegration relationships cannot be rejected in some specifications. The results suggest that long-run parameters are in line with economic theory. While judging the appropriateness of different strategies of monetary policy on the basis of these findings alone would be premature, the paper suggests that money demand functions can serve as a useful reference for monetary authorities. |
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