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Mohsen Bahmani-oskooee - One of the best experts on this subject based on the ideXlab platform.

  • Policy Uncertainty and the Demand for Money in Canada: A Nonlinear Approach
    Applied Economics Quarterly: Volume 64 Issue 4, 2018
    Co-Authors: Mohsen Bahmani-oskooee, Majid Maki Nayeri
    Abstract:

    Economic uncertainty is said to affect the Demand for Money in either direction. We use the new comprehensive measure of policy uncertainty and assess its impact on the Demand for Money in Canada. When a linear model was used, we found only short-run effects of uncertainty on Canadian cash holdings. However, when a nonlinear model was used, the results revealed that increased policy uncertainty has negative effect on the Demand for Money in the long run but decreased uncertainty has no effect, a clear sign of an asymmetric response by the public.

  • Economic uncertainty, monetary uncertainty and the Korean Demand for Money
    Journal of Economic Policy Reform, 2016
    Co-Authors: Mohsen Bahmani-oskooee, Jungho Baek
    Abstract:

    Economic uncertainty and monetary uncertainty are said to affect public’s holding of Money in either direction. In this paper, we consider the Korean Demand for Money, and after including two GARCH-based measures of output uncertainty and monetary uncertainty, we show that both measures exert significant effects on the Demand for Money in Korea in the short run. However, only the adverse effects of output uncertainty lasts into the long run. Indeed, including the two uncertainty measures yield a stable Demand for Money in Korea.

  • Asymmetric effects of exchange rate changes on the Demand for Money in China
    Applied Economics Letters, 2016
    Co-Authors: Mohsen Bahmani-oskooee, D Xi, Sahar Bahmani
    Abstract:

    © 2016 Taylor & Francis.In order to account for currency substitution, the majority of recent studies relating to the specification of the Demand for Money include the exchange rate as another determinant of the Demand for Money. However, those who have estimated the Demand for Money in China have been unable to find any significant effects of exchange rate changes on the Demand for Money by the Chinese. We show that this is due to the assumption that exchange rate changes have symmetric effects. Once depreciations are separated from appreciations of the yuan, those exchange rate changes are shown to have significant effects on the Demand for Money in China, but in an asymmetric manner.

  • Nonlinear ARDL approach and the Demand for Money in Iran
    Economics Bulletin, 2015
    Co-Authors: Mohsen Bahmani-oskooee, Sahar Bahmani
    Abstract:

    To account for currency substitution, most studies today include exchange rate as a determinant of the Demand for Money, in addition to income and interest rate. This tradition goes back to Robert Mundell who introduced this notion in 1963. In this paper, we demonstrate that the failure to find a significant relationship between exchange rate and the Demand for Money could be due to assuming a linear adjustment mechanism among the variables. Once we introduce nonlinearity in the short run as well as in the long run through partial sum concept, we show that currency appreciation or depreciation could affect the Demand for Money in an asymmetric manner. This is demonstrated using data from Iran.

  • MONETARY UNCERTAINTY AND Demand for Money IN KOREA
    Asian Economic and Financial Review, 2014
    Co-Authors: Mohsen Bahmani-oskooee, Sahar Bahmani
    Abstract:

    Friedman’s volatility hypothesis asserts that increased volatility of Money supply can lower the velocity of Money or increase the Demand for Money. Previous studies have tested this hypothesis by using data from a few industrialized countries. In this paper, we estimate the Demand for Money in Korea after including a measure of volatility of nominal Money supply. We provide support for Friedman’s hypothesis in the short run as well as in the long run.

Arjunan Subramanian - One of the best experts on this subject based on the ideXlab platform.

  • On the stability of Demand for Money in a developing economy Some empirical issues
    Journal of Development Economics, 2003
    Co-Authors: Basanta K Pradhan, Arjunan Subramanian
    Abstract:

    In recent years, a number of developing countries have undergone extensive reforms in the financial sector. The effects of this underlying financial innovation process on the stability of Demand for Money have seldom been studied in the context of developing countries. Nevertheless, these changes in the financial sector highlight the transition from one regime to the other. This need necessarily follows that such a process has to be accounted for in the long-run Demand for Money estimation. Here, we use a three-step testing procedure to study the implication of the reform process on the stability of Demand for Money. To account for the abovementioned changes, we specify the Demand for Money in an open economy framework using data from India. An estimation procedure accounting for these changes in the specification of Demand for Money suggests that financial deregulation and innovation did affect the empirical stability of Demand for Money in India.

Sahar Bahmani - One of the best experts on this subject based on the ideXlab platform.

  • Asymmetric effects of exchange rate changes on the Demand for Money in China
    Applied Economics Letters, 2016
    Co-Authors: Mohsen Bahmani-oskooee, D Xi, Sahar Bahmani
    Abstract:

    © 2016 Taylor & Francis.In order to account for currency substitution, the majority of recent studies relating to the specification of the Demand for Money include the exchange rate as another determinant of the Demand for Money. However, those who have estimated the Demand for Money in China have been unable to find any significant effects of exchange rate changes on the Demand for Money by the Chinese. We show that this is due to the assumption that exchange rate changes have symmetric effects. Once depreciations are separated from appreciations of the yuan, those exchange rate changes are shown to have significant effects on the Demand for Money in China, but in an asymmetric manner.

  • Nonlinear ARDL approach and the Demand for Money in Iran
    Economics Bulletin, 2015
    Co-Authors: Mohsen Bahmani-oskooee, Sahar Bahmani
    Abstract:

    To account for currency substitution, most studies today include exchange rate as a determinant of the Demand for Money, in addition to income and interest rate. This tradition goes back to Robert Mundell who introduced this notion in 1963. In this paper, we demonstrate that the failure to find a significant relationship between exchange rate and the Demand for Money could be due to assuming a linear adjustment mechanism among the variables. Once we introduce nonlinearity in the short run as well as in the long run through partial sum concept, we show that currency appreciation or depreciation could affect the Demand for Money in an asymmetric manner. This is demonstrated using data from Iran.

  • MONETARY UNCERTAINTY AND Demand for Money IN KOREA
    Asian Economic and Financial Review, 2014
    Co-Authors: Mohsen Bahmani-oskooee, Sahar Bahmani
    Abstract:

    Friedman’s volatility hypothesis asserts that increased volatility of Money supply can lower the velocity of Money or increase the Demand for Money. Previous studies have tested this hypothesis by using data from a few industrialized countries. In this paper, we estimate the Demand for Money in Korea after including a measure of volatility of nominal Money supply. We provide support for Friedman’s hypothesis in the short run as well as in the long run.

Saten Kumar - One of the best experts on this subject based on the ideXlab platform.

  • Testing the Stability of Demand for Money in Tonga
    2008
    Co-Authors: Saten Kumar, Billy Manoka
    Abstract:

    The aim of this study is to investigate if there is a stable Demand for Money for Tonga. Our empirical results based on the alternative time series approaches of LSE-Hendry's General to Specific (GETS) and Johansen's Maximum Likelihood (JML) show that there is a unique cointegrated and stable long run relationship between real narrow Money, real income and nominal rate of interest. We found that the Demand for Money function for Tonga is stable and therefore targeting Money supply by National Reserve Bank of Tonga is appropriate. We obtained consistent results with both methods and they indicate that income elasticity is unity and the interest rate elasticity is well- determined and significant.

  • Cointegration, structural breaks and the Demand for Money in Bangladesh
    2007
    Co-Authors: B. Bhaskara Rao, Saten Kumar
    Abstract:

    This paper 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.

  • The Stability of Demand for Money in Bangladesh: Time Series Methods
    The IUP Journal of Monetary Economics, 2007
    Co-Authors: Saten Kumar
    Abstract:

    An important issue for selection of monetary policy instruments is the stability of Demand for Money. In this paper, the Demand for narrow Money in Bangladesh has been estimated using time series methods. The results of the analysis show that there is a well-determined and stable Demand for Money in Bangladesh.

  • Structural Breaks and the Demand for Money in Fiji
    2006
    Co-Authors: B. Bhaskara Rao, Saten Kumar
    Abstract:

    This paper fills a gap in the empirical work on the Demand for Money for Fiji. We allowed for structural breaks in the cointegrating equation, within the Gregory and Hansen framework, and found that there is a cointegrating relationship between real narrow Money, real income and the nominal rate of interest in all the three types of their models. However, only the model with an intercept shift for the 1987 political coup yields a meaningful cointegrating relationship. We tested for its temporal stability and found that the Demand for Money in Fiji is stable.

Basanta K Pradhan - One of the best experts on this subject based on the ideXlab platform.

  • On the stability of Demand for Money in a developing economy Some empirical issues
    Journal of Development Economics, 2003
    Co-Authors: Basanta K Pradhan, Arjunan Subramanian
    Abstract:

    In recent years, a number of developing countries have undergone extensive reforms in the financial sector. The effects of this underlying financial innovation process on the stability of Demand for Money have seldom been studied in the context of developing countries. Nevertheless, these changes in the financial sector highlight the transition from one regime to the other. This need necessarily follows that such a process has to be accounted for in the long-run Demand for Money estimation. Here, we use a three-step testing procedure to study the implication of the reform process on the stability of Demand for Money. To account for the abovementioned changes, we specify the Demand for Money in an open economy framework using data from India. An estimation procedure accounting for these changes in the specification of Demand for Money suggests that financial deregulation and innovation did affect the empirical stability of Demand for Money in India.