demand for money in open economies abstract the demand for real cash balances deduced from an underlying portfolio model of the financial market is shown to depend upon domestic variables and foreign monetary developments the model is estimated using quarterly postwar data for canada germany uk and us there is clear evidence that demand for money is affected not only by changes in domestic variables such as permanent income domestic interest rate and price expectations but also by fluctuations in exchange rate expectations and foreign interest rates the conclusion that domestic monetary policy is fairly ineffective and domestic financial markets are highly vulnerable to changes in foreign financial and monetary developments need to be modified in light of the results presented in this paper

money demand amid financial sector developments in malaysia both long and short run real money demand functions of malaysia with money variously defined as m0 m1 and m2 have been estimated using the johansen cointegration technique and the general to specific approach respectively the period under review is 1973q1 1991q4 while liberalization and innovation in the malaysian financial system have not ruled out the existence of stable long run money demand relationships as attested to by the presence of cointegrating vectors they have rendered short run relationships unstable hence it may not be appropriate for one to conclude that monetary policy efficacies have been sacrosanct to the financial liberalization and innovation process on the basis of cointegrating relationships this is especially true as monetary policy is essentially a short run stabilization policy aimed at ironing out undue macroeconomic fluctuations this prompted us to re estimate short run money demand functions over more recent periods in order to boost the policy relevance of the estimat

estimating short and long run relationships a guide for the applied economist many applied economists face problems in selecting an appropriate technique to estimate short and long run relationships with the time series methods this article reviews three alternative approaches viz general to specific vector autoregressions and the vector error correction models as in other methodological controversies definite answers are difficult it is suggested that if these techniques are seen as tools to summarize data as in smith 2000 often there maybe only minor differences in their estimates therefore a computationally attractive technique is likely to be popular

excess liquidity and the foreign currency constraint the case of monetary management in guyana this article examines why commercial banks in guyana demand nonremunerated excess reserves a phenomenon that became even more widespread after financial liberalization despite the removal of capital controls banks do not invest all excess reserves in a safe foreign asset because the central bank maintains an unofficial foreign currency constraint by accumulating international reserves the findings suggest that commercial banks do not demand excess reserves for precautionary purpose which is the conclusion of several other studies but rather because of the maintained constraint the estimated sterilization coefficient is consistent with the hypothesis of an enforced constraint the results moreover suggest an alternative way of looking at the monetary transmission mechanism in developing countries the central bank maintains price and exchange rate stability through the accumulation of foreign reserves

cointegration structural breaks and the demand for money in bangladesh this article allows for endogenous structural breaks in the cointegration equation and investigates if there is a stable demand for money for bangladesh we have used the gregory and hansen framework and found that there was an intercept shift and a well determined and stable demand for money in bangladesh exists

money and financial markets introduction money and financial markets mark p taylor part 1 assessing the literature money demand analysis an outline keith cuthbertson david barlow financial market analysis an outline ronald macdonald and mark p taylor part 2 money demand studies money demand in five major countries estimating and interpreting error correction models james m boughton modelling broad and narrow money a study using cointegration martin brookes et al endogenous financial innovation and the demand for mo peter westaway and david walton money demand in high inflation countries a south american perpsective kate phylakis and mark p taylor the demand for money in four countries in the interwar period a study using monthly data jonathan slow et al part 3 money and financial markets some news on covered interest arbitrage mark p taylor patricia fraser monitoring bank risk a market based approach david miles stephen hall information interest rates and the volatility of asset prices laurence copeland richard c stapleton the decision to disclose research and development expenditure in the presence of a takeover threat jane black ian tonks persistence in stock market returns a disaggregated perspective roanld macdonald david power global capital market integration and the current account michael artis tamim bayoumi financial disorder and the theory of crisis e p davis part 4 new directions in financial market analysis neural networks and asset prices paul ormerod chartists fundamentalists and the transmission of opinion alan kirman

long run estimates of money demand new evidence from east asian countries and the presence of structural breaks conventionally the money demand function is estimated using a linear regression of the logarithm of money demand on a number of variables in this article we aim to estimate the long run properties of money demand specification for a number of east asian economies and within a panel framework with the presence of structural breaks various country specific coefficients are allowed to capture inter country heterogeneities consistent with theoretical postulates it is found that a the demand for money in the long run positively responds to real income and inversely to the interest rate spread inflation the real effective exchange rate and the us real interest rate b the long run income elasticity is greater than unity and c both the currency substitution and capital mobility hypotheses hold the empirical findings in this article can provide useful policy guidelines to the east asian countries central banks in their quest for price stability if one of the primary objectives of these countries

characterising b corps as a sustainable business model an exploratory study of b corps in australia abstract although there have been several attempts to define a business model that prioritises sustainability the initiatives do not involve a radical change to the prevailing business model sustainable business models are emerging that promise to transform the prevailing business model by prioritising positive social and environmental outcomes based on interviews with 14 australian companies this paper examines the b corp model to enrich understanding of the characteristics of sustainable business models that align profit and societal impact the paper found that the b corp model has a socially and environmentally embedded mission and purpose with a dominant objective of creating positive societal impacts for its stakeholders rather than maximising profit b corps internalise their social and natural contexts and attempt to engage in institutional work to provide thought leadership around sustainability and to drive change on a broader scale questions remain about the scalability of the b corp model and whether it will be adopted by large public listed companies to catalyse a shift in the current economic order or whether it will remain a niche of small privately owned companies

the price effects of spatial competition a recent paper by capozza and van order cvo 1977 proposed a generalization of the greenhut hwang ohta gho 1975 analysis of pricing under three alternative types of spatial competition the gho analysis was based on a short run model in which the locations of firms are assumed to be fixed cvo accordingly proposed relaxation of this rigid assumption to examine if the gho results also apply to the long run zero profit industry equilibrium they confirmed the gho results which however they also contended require certain particular modifications as well in the light of their own models the cvo contribution lies in their simple model analysis of long run industry equilibrium conditions a generalization of the gho analysis however they failed to recognize that the gho analysis is based on another restrictive assumption regarding the form of the demand function moreover they assumed even more restrictive demand conditions and misled themselves to a conclusion that l6schian competition never results in a lower price than spatial monopoly their conclusion is invalid since loschian competition can be shown to result in a lower not higher mill price if only the demand function is assumed to be sufficiently convex to the origin ohta 1980 this calls for a more general examination of conditions under which the firm s f o b mill price may rise or fall due to spatial entry of rival firms the present paper presents selected results of such examination section 2 briefly reviews the theory of spatial monopoly initially some fundamental assumptions are set forth this is followed by derivation of the market demand function for the spatial monopolist the market demand in turn is shown to be more or less elastic than the assumed basic demand function depending on the curvature of the latter curve we also comment on the so called paradox of spatial monopoly which we claim is a misnomer the analytical framework of section 2 is employed in section 3 as we generalize previous analyses and present a concise cataloguing of comparative static results of spatial competition 1 again the basic demand characteristics in combination with alternative types of spatial competition are shown to play an important role in yielding the distinct elasticity results and for that matter competitive equilibrium prices in the process a counter example to cvo s aforementioned argument on l6schian pricing is presented also discussed is the conceptual distinction between perceived and realized elasticities of demand under spatial competition which cvo also failed to recognize as a result they erred in speculating that equilibrium mill prices would be the same under alternative types of spatial competition given the size of the market area we will show that they in fact are not section 4 concludes the paper by summarizing the basic results of our analysis

exchange rate sensitivity of the demand for money in spain 1998 exchange rate sensitivity of the demand for money in spain applied economics vol 30 no 5 pp 607 612

modelling money demand in open economies the case of selected asian countries while early work on money demand estimation focused primarily on the importance of domestic variables many studies in later years have suggested that foreign variables also influence the domestic demand for money in an open economy with the rapid financial market liberalization in some of the asian economies in the last couple of decades open economy factors have become very important in the determination of money demand therefore this paper aims to ascertain the degree to which foreign opportunity cost variables influence money demand in the philippines singapore and south korea cointegration analysis is performed and an error correction model estimated using quarterly time series data the empirical results support the inclusion of foreign opportunity cost variables in the money demand function

demand for money in india 1953 2003 the demand for money especially in the developing countries is an important relationship for formulating appropriate monetary policy and targeting monetary variables in this paper the demand for narrow money in india is estimated and its robustness evaluated it is found that there is a stable demand for money for almost half a century from 1953 to 2003 there is no evidence for any significant effects of the 1991 financial reforms

monetary union money demand and money supply a review of the german monetary union abstract we present an empirical analysis of german money demand money supply and monetary policy after german monetary union in 1990 empirical models for velocity and forecast models for the money multiplier are estimated stability analysis reveals that structural stability of the demand for broad money after monetary union must be rejected stability of the demand for narrow money can be accepted east german portfolio adjustment with regard to the structure of monetary portfolios occurred quite rapidly the increase in monetary control uncertainty caused by these adjustments did not however impede monetary targeting with reasonable precision

stability of the money demand function in asian developing countries previous studies that estimated the money demand function in asian developing countries either employed traditional estimation techniques or recently popularized cointegration technique while the first group suffers from spurious regression problems the second group interpreted their finding of cointegration as a sign of stability of estimated parameters this study after incorporating the cusum and cusumsq tests into cointegration analysis shows that in some asian countries even though real m1 or m2 monetary aggregates are cointegrated with their determinants the estimated parameters are unstable

emergence of green business models the case of algae biofuel for aviation emergent business models seek to take advantage of new market mechanisms driven by technological changes particularly those related to the production and delivery of clean or sustainable energy such business models often function at the intersection of various industries with global views and the resulting systems have distinct social political environmental economic technological and business dimensions such holistic systems are not only difficult to develop but also require support from a broad range of actors with effective regulations and policies in place such that the firm functions within a framework that integrates various factors this study substantiates such a framework by detailing the nascent algae based bio fuel industry that caters to the aviation sector while arguing that businesses in the energy industry can emerge as a next practice platform that drive a sixth wave of innovation the framework begins with three basic enablers innovation flexibility and sustainability and explains how value from renewable energy technologies can be created and captured sustainably and innovatively with new market mechanisms implemented by firms with green business models

spatial pricing in the united states west germany and japan this paper investigates the spatial pricing policies of a sample of firms in the united states west germany and japan we begin in section i by providing general results for the three countries these suggest that f o b pricing is the exception rather than the rule furthermore there appear to be significant differences between the countries in the degree of spatial price discrimination the remainder of the paper examines whether the inter country differences in spatial discrimination can be explained by a theory of spatial pricing section ii uses the theory of spatial pricing proposed in greenhut and greenhut 1975 to derive an operational model in section iii the parameters of this model are estimated from the individual country data and the results are discussed section iv presents the conclusions the data used in this study were obtained from a survey of firms in the three countries in each country target regions were selected with a similar urban rural proportions as restricted by b existing acquaintanceships with professors in or near these urban rural centres survey constraint b was imposed after a mailed questionnaire pilot study in the united states had indicated a likely need for follow up mailings phone calls and even interviews before a sufficient number of responses from a particular place e g a particular state in the united states could be expected after selecting our comparable survey areas firms were picked at random from industrial lists of business establishments in each country and questionnaires were mailed to them the questionnaire is reproduced in the appendix the firms that returned questionnaires were compared to non responding firms no distinction in size of firm industry type or location was apparent for any country or sub region studied among the respondents we dropped from the sample all firms that were not subject to a significant freight cost defined to be a 5 per cent minimum freight cost to delivered cost ratio on sales to at least one distant market point our findings on pricing strategies are summarized in table 1 firms in the united states tend to price discriminatorily of 174 sampled firms less than one third priced non discriminatorily f o b the spokesmen for the remaining firms 67 per cent admitted that they did not add full freight cost to their mill price on all of their distant sales these firms therefore priced discriminatorily the tendency to price discriminatorily is even greater in west germany and japan with the percentage of discriminating firms approximately

the financial structure and the demand for money in thailand this paper uses recently developed econometric techniques to investigate the demand for money in thailand initial estimates show the absence of any long term unique relationship among a monetary aggregate m1 or m2 an income and a price variable however the introduction of an exchange rate in the above relationship shows the presence of a cointegrating relationship this provides some support to mckinnon s hypothesis of currency substitution it also raises some concern about the closed economy focus of earlier studies on money demand in thailand addition of a foreign interest variable to the above models provide some support to the capital mobility hypothesis the long run elasticity estimates for the m1 equation raise some doubts about the desirability of using this monetary aggregate as an intermediate target by the bank of thailand the null hypothesis of a unit income elasticity and zero foreign interest elasticity are not rejected but the hypothesis of price homogeneity is rejected moreover

age size growth and survival uk companies in the 1980s this paper examines growth and survival amongst quoted and unquoted u k companies in the period 1975 85 and compares the results with earlier u k and u s studies an examination of death rates shows that smaller companies had higher death rates but the largest and smallest companies were least vulnerable to takeover careful attention is therefore paid to problems of sample selection bias it is shown that smaller companies grew faster than larger companies that gibrat s law does not hold amongst smaller firms that age is negatively related to growth and that these results are not an artifact of sample selection bias copyright 1994 by blackwell publishing ltd

the demand for m1 in the u s a 1960 1988 estimated u s m1 demand functions appear unstable regularly breaking down over 1960 1988 e g missing money great velocity decline m1 explosion we propose a money demand function whose arguments include inflation real income long term bond yield and risk t bill interest rates and learning curve weighted yields on newly introduced instruments in m1 and non transactions m2 the model is estimated in dynamic error correction form it is constant and with an equation standard error of 0 4 variance dominates most previous models estimating alternative specifications explains earlier breakdowns showing the model s distinctive features to be important in accounting for the data

an alternative approach to the american demand for money with a decade of evidence behind it the profession seems to have agreed on the fact that a structural break shifted the american demand for money shortly after 1973 it is difficult to pinpoint the source of the trouble precisely let alone to explain the event with an econometric model in their survey judd and scadding 1982 tentatively concluded that financial innovation is the source of the problem while this conclusion has not been universally accepted the instability of the money demand function is largely taken as a given stylized fact the primary goal of this article is to provide an alternative solution to the case of the missing money using the methods of hendry 1979 it should be stressed at the outset that as this paper deals with a problem in the applied literature it is unabashedly empirical in nature the paper attempts to explain an empirical difficulty without presenting a new theoretical model of money demand rather in the context of the standard transactions demand theory for narrow money a number of questions are analyzed with an atypical econometric model was there actually a shift or a series of shifts in the demand for money if not why have other investigators concluded that there was in fact a shift most importantly what function seems to be the most reasonable approximation to the data generation process during the period in question

the search for a stable money demand function a survey of the post 1973 literature phe question of whether the demnand function for money is stable is one of the most important recurring issues in the theory and application of macroeconomic policy what is being sought in a stable demand function is a set of necessary conditions for money to exert a predictable influence on the economy so that the central bank s control of the money supply can be a useful instrument of economic policy as such the notion of a stable demand function appears to involve three key elements e g john t boorman 1976 p 317 and david e w laidler 1977 pp 34 35 first the demand for money relation should be highly predictable in a statistical sense as measured by the usual goodness of fit statistics precision of estimated coefficients and presumably its ability to forecast accurately out of sample second a stable demand function for money has relatively few arguments a relationship that requires knowledge about a large number of variables in order to pin it down is in effect not predictable finally the variables that appear as arguments in the function should represent significant links to spending and economic activity in the real sector in sum a stable demand function for money means that the quantity of money is predictably related to a small set of key variables linking money to the real sector of the economy the importance of a stable money demand function for monetary policy can be illustrated with the standard is lm model in which interest rates and gnp are the endogenous variables in this context a stable demand function for money translates into a well defined relationship between money interest rates and gnp

spatial competition and spatial price discrimination the analysis of spatial competition under conditions of free entry which derives its major impetus from the seminal work of losch 1954 has been conducted in general on the assumption that the competitive firm will adopt an f o b pricing scheme see for example capozza and van order 1978 and holahan 1978 greenhut 1956 does consider some of the implications of discriminatory pricing within competitive markets but his analysis adopts an essentially short run view and provides little rationale for the choice of such a pricing policy by competitive firms this is in contrast with developments in the analysis of spatial monopoly the early work of singer 1937 and hoover 1937 and subsequent developments by for example greenhut 1956 beckmann 1976 beckmann and ingene 1976 greenhut and greenhut 1977 holahan 1975 and norman 1977 indicate that the spatial monopolist should adopt a discriminatory spatial pricing policy where spatial price discrimination is taken conventionally to mean that delivered prices do not follow an f o b scheme but that all concumers equidistant from a particular supplier pay the same price it is rarely however that the results generated by the analysis of spatial monopoly are reconsidered in the analysis of spatial competition in particular although we know that spatial price discrimination will in general increase a monopolist s profit the assumption that profit maximising spatially competitive firms will adopt f o b pricing schemes has rarely been questioned and has not been questioned within the loschian competitive framework greenhut and ohta 1975a chapter 8 and chapter 8 appendix i are notable exceptions but in both cases they depart from the loschian scheme the first objective of this paper is therefore to show that when loschian competitive firms are allowed the option of discriminatory pricing i e are free of institutional constraints which require f o b pricing they will be forced to exercise that option in order to maintain normal profits secondly we shall show that if competitive conditions change the form of price discrimination will also change and that under certain competitive conditions the degree of discrimination will increase with the degree of competition leading eventually to uniform pricing thirdly we compare two competitive cases with multi plant monopoly and derive the spatial analogue of the conventional spaceless monopoly perfect competition comparison the monopolist s plants will be larger in area and total output than each competitive firm but will supply less per consumer at a higher average price welfare comparisons are less clear cut in that they are dependent upon the type of competition we assume we show however that welfare maximisation requires marginal cost pricing where marginal cost includes transport costs and so requires f o b pricing if there are economies of scale to production it follows that welfare maximisation will require production subsidy

long run income and interest elasticities of money demand in the united states econometric techniques designed to accommodate nonstationary data are used to reexamine the stability of interest and income elasticities of money demand in the united states estimates based on postwar monthly data reveal a stable relationship between m1 velocity and various measures of interest rates that proxy the opportunity cost of holding money balances tests for the existence of cointegration and methods used to estimate the income and interest elasticities are based on procedures prescribed by soren johansen 1988 corresponding error correction estimates offer insight as to the dynamics of the process that maintains the equilibrium relation between velocity and interest rates copyright 1991 by mit press

money demand income elasticity in advanced and developing countries new evidence from meta analysis this article extends the meta analysis presented in knell and stix 2005 2006 to investigate the possible sources of variations in empirical findings about the income elasticity of money demand in advanced and developing countries in the case of advanced countries we find that the income elasticities of money demand are significantly higher if broader definitions of the monetary aggregates are used in addition financial reforms and wealth seem to have significantly reduced the estimates of the income elasticity however we achieved quite different findings for the developing countries it appears that the broader definitions of monetary aggregates seem to produce income elasticity estimates that are only marginally higher than the narrower aggregates while the wealth financial reform impacts on income elasticity are statistically insignificant weakly significant both seems to have reduced the income elasticity estimates only marginally moreover some contrasting results between advanced and

the demand for money a dynamic rational expectations model macroeconomic modelling generally has widely adopted the use of forwardlooking variables in behavioural relationships studies of the demand for money being something of an exception the aim of this paper is to provide preliminary empirical results of a model which explicitly incorporates expectations of the future into the demand function for narrow money the approach adopted is the modelling of the demand for money within a multi period costs of adjustment framework under the assumption of rational expectations agents are assumed to pursue a target or long run level of money balances which is itself a function of prices income and interest rates this results in an empirical specification which consists of both backwardlooking and forward looking components the model is estimated using uk data for the period i963i i983iii the remainder of the paper is divided into four sections in section i we outline the framework in which our model is derived in the following section we discuss the econometric techniques used and in section iii we present our empirical results a final section concludes

currency substitution and seigniorage maximizing inflation the case of cambodia this article contributes a new empirical study on currency substitution in cambodia in our analysis a model of money in the utility function is adopted the empirical results indicate that the elasticity of substitution between foreign and domestic real currency balances in cambodia is high moreover the high share of foreign real balances in providing domestic liquidity services in cambodia is also confirmed by empirical analysis given these findings the effects of the currency substitution on the government ability to gain from seigniorage revenue are also examined the analysis from simulated results shows that the cambodian government has little opportunity to gain from seigniorage revenue

on the reinterpretation of money demand regressions a stylized fact concerning estimated money demand relationships is that lagged dependent variables have high explanatory power and large estimated coefficients which is hard to explain at a theoretical level marvin s goodfriend 1985 suggests that this may be due to the presence of serially correlated measurement errors in the independent variables the author demonstrates how consistent estimates of the short run demand function can be obtained even if the goodfriend hypothesis is accepted and also how the hypothesis might be tested application of the suggested test using the goldfeld 1973 data set leads to decisive rejection of the hypothesis copyright 1994 by ohio state university press

real wages inflation and labour productivity in australia this paper presents an analysis of real wages inflation and labour productivity interrelationships using cointegration granger causality and most importantly structural change tests applications of tests to australian data over the 1965 2007 period corroborate the presence of a structural break in 1985 and show that a 1 percent increase in manufacturing sector real wages led to an increase in manufacturing sector productivity of between 0 5 and 0 8 percent comparable estimates for the effect of inflation on manufacturing sector productivity have limited statistical significance granger causality test results suggest that real wages and inflation both granger cause productivity in the long run

the role of money supply shocks in the short run demand for money abstract previous money demand models are either inconsistent with contemporaneous adjustment of the price level to expected changes in the nominal money supply or imply implausible interest rate fluctuations in response to innovations in nominal money we propose a shock absorber money demand model in which money supply shocks affect the synchronization of asset transactions and so engender a temporary increase or decrease in desired money holdings expected changes do not engender such fluctuations in real money inventories in simultaneous estimates for eight industrial countries the shock absorber model proved empirically superior

the benefit corporation and corporate social responsibility in the wake of the most recent financial crisis corporations have been criticized as being self interested and unmindful of their relationship to society indeed the blame is sometimes placed on the corporate legal form which can exacerbate the tension between duties to shareholders and interests of stakeholders in comparison the benefit corporation bc is a new legal business entity that is obligated to pursue public benefit in addition to the responsibility to return profits to shareholders it is legally a for profit socially obligated corporate form of business with all the traditional corporate characteristics combined with societal responsibilities considering the history and perception of shareholder primacy in united states law it is argued that this new business structure is an ethical step toward empowering socially committed commercial entities the contribution of this research is to provide a fundamental base of knowledge about the new legal form of business the bc upon which further study may rely first the legal history of the corporation is briefly reviewed in order to provide context to the relationship of the corporate form to society including exploration of the premise that shareholder wealth maximization is its best and only purpose second the bc is described in detail and state statutes are compared third the bc is placed within the context of corporate social responsibility finally opportunities for future research are discussed

permanent and transitory components in macroeconomic fluctuations fluctuations in real gnp have traditionally been viewed as transitory deviations from a deterministic time trend the purpose of this paper is to review some of the recent developments that have led to a new view of output fluctuations and then to provide some additional evidence using post war quarterly data it is hard to reject the view that real gnp is as persistent as a random walk with drift we also consider the hypothesis that the recent finding of persistence are due to the failure to distinguish the business cycle from other fluctuations in real gnp we use the measured unemployment rate to decompose output fluctuations we find no evidence for the view that business cycle fluctuations are more quickly trend reverting this abstract was borrowed from another version of this item

nonlinear equilibrium correction in u s real money balances 1869 1997 several theoretical models of money demand imply nonlinear functional forms for the aggregate demand for money characterized by smooth adjustment toward long run equilibrium in this paper we propose a nonlinear equilibrium correction model of u s money demand that is shown to be stable over the sample period from 1869 to 1997

long run money demand in taiwan revisited evidence from a cointegrating str approach previous studies on the nonlinearity of the money demand function focus only on short run dynamics and assume that the long run cointegrated relationship is linear which according to economic theory need not be the case thus this article focuses on the variables that make up the long run money demand function in taiwan and their determinants by using the cointegrating smoothing transition regression cstr test developed by choi and saikkonen 2004 this model is more general than the previous str model in that it may contain several transition functions and has more than a single transition variable we demonstrate our empirical results for robustness and adopt two models to ascertain whether or not the stock price should be added as a determinant of the demand for money our empirical results show the existence of a stationary long run relationship among real money demand functions for the period from 1976q1 to 2005q1 and the robustness test covers the 1980q1 2005q1 period in taiwan by comparing

revisiting the us money demand function an application of the lagrange multiplier structural break unit root test and the bounds test for a long run relationship in this article we examine the issue of a levels relationship and stability of the us money demand function over the period 1959 01 to 2004 02 we use the lagrange multiplier structural break unit root test and the bounds testing approach to a long run relationship in levels of the variables namely real money demand nominal interest rate and real income we find greater evidence for a long run relationship in levels and stability of the us money demand function when we use m2 as a proxy for money demand however we find little evidence for a long run relationship between m1 and m2 with their determinants for the recent period spanning the last decade or so

asymmetric responses of money demand to oil price shocks in saudi arabia a non linear ardl approach saudi arabia is an open oil based economy with fixed exchange rates therefore it has limited monetary policy autonomy using non linear autoregressive distributed lag approach this article inves

german monetary unification and the stability of the german m3 money demand function abstract this paper employs quarterly data from the whole of germany to test the stability of m3 demand for money the methodology is based on an application of the cusum and cusumsq in the context of error correction modeling and cointegration the results reveal some instability in m3 money demand function

stability of money demand function revisited in china as china s economic reforms have undergone significant structural changes after 1979 it has been rather difficult to formulate a stable money demand function over the period following that year while previous literature on the long run relationship of money demand in china shows the existence of stable money demand this article revisits the stability of the china money demand function over the period after 1979 to employ the unit root tests and the cointegration tests with structural break the empirical evidence demonstrates that economic and financial deregulation did affect the stability of demand for money in china over the period 1977 to 2002 moreover the estimated long run income and interest elasticity are respectively 1 01 1 11 and 0 14 0 08 using the real m1 m2 equation in addition real income and the interest rate are found to be weakly exogenous we overall do find structural breakpoints mainly in 1980 and 1993 and they look to match clearly with corresponding critical financia

demand for money in bangladesh a cointegration analysis the aim of this study is to estimate the demand for real broad m2 money in bangladesh using the most recently developed autoregressive distributed lag approach to cointegration analyses the empirical results show that there is a unique cointegrated and stable long run relationship among real per capita broad money demand real per capita income domestic interest rates and unofficial exchange rate um premiums which act as a surrogate for foreign interest rates with money as the dependent variable the results show that the income and interest elasticities are positive while the um premium elasticity is negative these results suggest that distortions in the financial and foreign exchange markets should be reduced in order to increase financial saving or monetary accumulation our results also reveal that the demand for money in bangladesh is stable despite the changes in financial and exchange rate policies between 1975 and 1995

a re examination of the demand for money in small developing economies this paper re examines the money demand function in three small open economies of asia korea pakistan and singapore in addition to using the relatively new procedure of error correction modelling the roles of variables such as a the expected change in the exchange rate b foregin interest rates and c foreign exchange risks on money demand are examined in testing the importance of these variables in the money demand function special attention is paid to testing the assumptions of the classical linear regression model the sample period for each country spans from 1973 1 through 1990 1 the empirical results suggest that the error correction specification performs very well in addition to the traditional variables the results suggest that at least some measure of foreign monetary developments appear to have some significant effect on money demand behaviour in these small developing economies

the stability of long run money demand in five industrial countries abstract this study provides strong evidence for the stability of long run demand functions for narrowly defined money m1 in five industrial countries u s japan canada u k and west germany using post war quarterly data evidence of stability is examined using two different estimation techniques and through a formal test of parameter constancy designed specifically for cointegrating vectors in the majority of these countries the key to stability is the imposition of a unitary long run income elasticity that is rarely rejected by the data

the effect of barter on the demand for money an empirical analysis abstract the impact of barter on the m2 money demand for the u s is explored the results show that in addition to the traditional explanatory variables the level of barter must be included in the estimates of the demand for money

cointegration tests of a long run relation between money demand and the effective exchange rate abstract for the period starting with the floating of the us dollar we find evidence that long run stationarity of the demand function for m2 but not m1 requires inclusion of the effective exchange rate these results lend some support to mckinnon s hypothesis that nonstationarity in the demand for money can be resolved by inclusion of the exchange rate jel f41 e41

exchange rate sensitivity of the demand for money in developing countries there is consensus among researches that under the present floating exchange rate system although developing countries peg their exchange rate to a major currency they cannot avoid fluctuation in their effective exchange rates as long as major currencies fluctuate against one another few authors have investigated the effects of changes in effective exchange rates of developing countries on their imports exports trade balance demand for international reserves inflation etc in this paper we try to inestigate the effects of effective exchange rates of developing countries on their demand for money previous authors who have estimated a money demand function inclusive of an exchange rate variable bilateral or effective have restricted themselves to industrial countries only by using quarterly data over the 1973 85 period it is shown that in most developing countries while the short run effcts of depreciation could be in either direction its long run effects are negative indicating that deprecia

exchange rate variability and the export demand for malaysia s semiconductors an empirical study this article examines the effects of exchange rate variability on export demand for semiconductors which is the largest sub sector of electronics industry in malaysia as reported by malaysian industrial development authority mida 2004 the empirical results which are estimated based on the johansen s multivariate cointegration tests and error correction model suggest that there is a unique long run relationship among quantities of export relative price real foreign income and real exchange rate variability the major finding of this article is that the variability of real exchange rate has some effect on semiconductor exports in both the long run and the short run in the light of rapid advances in technology in the global markets for electronics products the findings are useful to policy makers for the design and target of appropriate exchange rate and industrial policies to enhance the export competitiveness of semiconductor industry

the buffer stock notion in monetary economics not the least of harry johnson s contributions to our discipline was the series of survey papers on aspects of monetary economics which he produced during the 1960s and 1970s it is no exaggeration to say that the way in which the literature of monetary economics is organised even now follows the design which johnson first set out in 1962 and built on in the subsequent decade nevertheless the subject has not stood still and one of the more interesting developments of the last few years has involved the introduction of what has been variously described as the disequilibrium money shock absorber or as i prefer to call it the buffer stock notion into monetary economics the development of this line of thought was getting underway before johnson s untimely death much of it indeed under the auspices of his own research programme at the lse even so this did not happen early enough for the relevant ideas to be put in their proper niche by johnson himself and the buffer stock approach is not yet fully integrated into the mainstream of monetary economics much of the relevant literature is empirical concerned with modelling particular aspects of the monetary experience of specific countries hence it is fragmented and contains few papers which attempt a coherent account of just what this approach is and how it relates to other approaches to monetary analysis although essays by goodhart 1982a b and judd and scadding 1982a contain important discussions of these issues to the best of my knowledge only jonson 1976a and knoester 1979a have devoted entire papers solely to this central issue and these are relatively inaccessible and hence less widely known than they deserve to be in this lecture i shall attempt to give a brief account of the essentials of this approach first i shall sketch out its microeconomic background and then i shall discuss those theoretical characteristics which differentiate it from the neo austrian analysis of robert e lucas jr and his associates as well as from the conventional keynesian approach to monetary economics last but by no means least i shall argue that it yields simple theoretical insights into important empirical and policy related issues which are troublesome for alternative approaches in short my tribute to harry

building sustainable hybrid organizations the case of commercial microfinance organizations we explore how new types of hybrid organizations organizations that combine institutional logics in unprecedented ways can develop and maintain their hybrid nature in the absence of a ready to w

the demand for money in the united states evidence from cointegration tests this paper uses recent cointegration test procedures to investigate the underlying economic relationship between real money balances real income and interest rates for the united states unlike recent studies of money demand the authors analysis uses quarterly data spanning the period 1915 88 thus providing a sample encompassing a wide variety of economic experiences the evidence presented indicates that the broader m2 measure of money is the preferable measure with which to consider the long run effects of monetary policy copyright 1991 by ohio state university press

exchange rate sensitivity of demand for money and effectiveness of fiscal and monetary policies one of the arguments between proponents and opponents of floating exchange rates centres around the relative effectiveness of fiscal and monetary policy while proponents of floating rates argue that monetary policy is more effective under floating rates its opponents contend that fiscal policy is more effective under fixed rates however economic theory suggests that there is room for both policies under both types of exchange rate system depending upon degree of sterlization concentrating on the floating rates mundell 1963 has argued that the relative effectiveness of monetary and fiscal policies would also depend upon sensitivity of money demand to exchange rate more precisely he has conjectured that the demand for money is likely to depend upon the exchange rate in addition to the interest rate and the level of income this would slightly reduce the effectiveness of a given change in the quantity of money and slightly increase the effectiveness of fiscal policy on income and employment under

demand for money in the selected oecd countries a time series panel data approach and structural breaks time series panel data estimation methods are used to estimate the cointegrating equations for the demand for money m1 for a panel of 11 organization for economic cooperation and development oecd countries for which consistent quarterly data are available the effects of financial reforms are analysed with structural break tests and estimates for alternative sub samples our results for the post reform sub samples show that the income elasticity of the demand for money has decreased and response to interest rate changes has increased

reverse dumping a form of spatial price discrimination this paper generalizes joan robinson s analysis of dumping under a spatial price theory framework the dumping of goods is shown to be a natural form of spatial pricing rather than necessarily an act of predatory design viewed as such dumping neither requires predatory motives nor competition in markets where the goods are to be dumped a simple spatial monopoly model is used to derive the firm s optimal price policy on sales to nearby and to distant customers under different demand and cost conditions the paper then resolves the question of reverse dumping which may or may not benefit the nearby home country customers