Drama, Bedi Guy Herve and Yao, Shen (2010): The Demand for Money in Cote d’Ivoire: Evidence from the Cointegration Test.
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This paper demonstrates that there is a long run equilibrium relationship between money supply 〖(M〗_1) and its main determinants, real income (GDP) and interest rate in Cote d’Ivoire. In order to investigate long-term relationship among these variables, we use Juselius and Johansen cointegration test with time series data covering the period of 1980-2007. The results show that there is long-term relationship among these variables as well as the linkage between them. Base from this result we found that only real money balances 〖(M〗_1) has significant long -run economic impact of variations in monetary policy in Cote d’Ivoire. However, the study also revealed that the effect of aggregate 〖(M〗_2) is not so stable linking with it determinants.
|Item Type:||MPRA Paper|
|Original Title:||The Demand for Money in Cote d’Ivoire: Evidence from the Cointegration Test.|
|Keywords:||Cointegration test, Money demand|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy|
|Depositing User:||Bedi Guy Herve Drama|
|Date Deposited:||19. Jan 2010 18:40|
|Last Modified:||14. Feb 2013 02:24|
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