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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## Abstract

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 |
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Original Title: | The Demand for Money in Cote d’Ivoire: Evidence from the Cointegration Test. |

Language: | English |

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 |

Item ID: | 20131 |

Depositing User: | Bedi Guy Herve Drama |

Date Deposited: | 19 Jan 2010 18:40 |

Last Modified: | 29 Sep 2019 07:53 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/20131 |