Money Demand in Singapore Revisited: A Comment with Implications

This comment reviews the meaning and significance of the econometric results relating to money demand in Singapore in a paper by Daquila and Phua (1993). I argue that there are a number of confusions and faults in their analysis that could account for their results being incompatible with earlier studies and with monetary events in Singapore. An explanation of their perplexing findings is offered, simple re-estimates are made to justify this point and then some implications for economic methodology and research are offered.