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Money demand and economic uncertainty in Barbados

Jackman, Mahalia (2010): Money demand and economic uncertainty in Barbados. Published in: The Empirical Economics Letters , Vol. 10, (May 2011)

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Abstract

Using the unrestricted error correction model proposed by Pesaran et al (2001), this paper investigates the relationship between economic uncertainty and money demand in Barbados. Results suggest that in the short run, agents tend to increase money holdings in the face of heightened uncertainty. However, this impact does not carry on into the longer term. Rather, the results suggest that nominal assets may become less attractive during prolonged periods of economic uncertainty.

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  • Money demand and economic uncertainty in Barbados. (deposited 23. Apr 2012 00:51) [Currently Displayed]
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