Qayyum, Abdul (2005): Modelling the Demand for Money in Pakistan. Published in: The Pakistan Development Review , Vol. 3, No. 44 (2005): pp. 233-252.
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The study estimates the dynamic demand for money (M2) function in Pakistan by employing cointegration analysis and error correction mechanism. The parameters of preferred model are found to be super-exogenous for the relevant class of interventions. It is found that the rate of inflation is an important determinant of money demand in Pakistan. The analysis reveals that the rates of interest, market rate, and bond yield are important for the long-run money demand behaviour. Since the preferred model is super-exogenous, it can be used for policy analysis in Pakistan.
|Item Type:||MPRA Paper|
|Institution:||Pakistan Institute of Development Economics|
|Original Title:||Modelling the Demand for Money in Pakistan|
|Keywords:||Money Demand; super exogenous; error correction; cointegration; Pakistan|
|Subjects:||E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money|
|Depositing User:||Abdul Qayyum|
|Date Deposited:||07. Mar 2007|
|Last Modified:||13. Feb 2013 04:58|
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