Levent, Korap (2007): Turkish money demand, revisited: some implications for inflation and currency substitution under structural breaks. Published in: Boğaziçi Journal, Review of Social, Economic and Administrative Studies , Vol. 21, No. 12 (2007): pp. 107127.

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Abstract
In this paper, a money demand model constructed on currency in circulation is used to determine the appropriate alternative cost to hold monetary balances in the Turkish economy. Our estimation results, using contemporaneous multivariate cointegration methodology, indicate that the most significant alternative cost to demand for money is the depreciation rate of the nominal exchange rate. This brings out the importance of having a currency substitution phenomenon settled in the economy when economic agents make their decisions as to their monetary transactions. Moreover, we find that domestic inflationary framework has been subject to a weakly exogenous characteristic and conclude that the main factors leading to domestic inflation are determined out of the money demand variable space.
Item Type:  MPRA Paper 

Original Title:  Turkish money demand, revisited: some implications for inflation and currency substitution under structural breaks 
English Title:  Turkish money demand, revisited: some implications for inflation and currency substitution under structural breaks 
Language:  English 
Keywords:  Money Demand ; Inflation ; Currency Substitution ; Turkish Economy ; 
Subjects:  C  Mathematical and Quantitative Methods > C3  Multiple or Simultaneous Equation Models; Multiple Variables > C32  TimeSeries Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models E  Macroeconomics and Monetary Economics > E5  Monetary Policy, Central Banking, and the Supply of Money and Credit > E52  Monetary Policy E  Macroeconomics and Monetary Economics > E4  Money and Interest Rates > E41  Demand for Money 
Item ID:  19479 
Depositing User:  Levent Korap 
Date Deposited:  21. Dec 2009 06:06 
Last Modified:  12. Feb 2013 20:57 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/19479 