Demand for money in transition economy: the case of the Czech Republic 1993-2001
Komárek, Luboš and Melecky, Martin (2001) Demand for money in transition economy: the case of the Czech Republic 1993-2001. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.614).
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In this paper we strive to present a somewhat internationalised view of demand for money as applied to the Czech Republic. We extend the traditional money demand function, consisting purely of domestic variables, to include certain foreign determinants that probably affect the demand for money in a small open transition economy. We do so in the case of both narrow and broad money. For the purposes of generalisation and robust estimates we employ several estimation techniques, namely the Johansen procedure, ARDL, DOLS and ADL. We also consider the aspect of the stability of such estimates. Finally, we analyse the possible effects on prices and output of disequilibria on money market. We have found that a liquidity gap probably has a significant influence on both prices and output.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HG Finance|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Demand for money -- Czech Republic, Money -- Czech Republic, Transmission mechanism (Monetary policy) -- Czech Republic, Development economics -- Czech Republic, Czech Republic -- Economic conditions -- 1993-|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Official Date:||December 2001|
|Number of Pages:||34|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|Funder:||Grantová agentura České republiky [Grant Agency of the Czech Republic] (GACR)|
|Grant number:||402/00/1166 (GACR)|
AARLE, VAN B.-BUDINA, N. (1995). Currency Substitution in Eastern Europe. Tilburg University, Center for Economic Research, Discussion Paper Series no. 2
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