Korap, Levent (2008): Determinants of reserve money demand: a multivariate cointegrating approach. Published in: Pamukkale Üniversitesi Sosyal Bilimler Enstitüsü Dergisi , Vol. 1, No. 2 (2008): pp. 3342.

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Abstract
In this paper, a reserve money demand model is constructed for the Turkish economy. Base on the contemporaneous multivariate cointegration estimation methodology, our findings indicate that the main alternative costs to hold reserve money balances in hand are the expected exchange rate depreciation representing ongoing currency substitution phenomenon in the economy and the equity prices. The semielasticity of domestic inflation reveals high degree of substitutability between real monetary balances and durable commodities. Furthermore, there exists evidence in favor of the effects of financial development on the money demand function in the sense that diversification of financial tools held in hand against demand for money balances is a necessary condition for the determination of longrun course of the monetary policy.
Item Type:  MPRA Paper 

Original Title:  Determinants of reserve money demand: a multivariate cointegrating approach 
English Title:  Determinants of reserve money demand: a multivariate cointegrating approach 
Language:  English 
Keywords:  Reserve Money Demand; Cointegration; 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 ; Diffusion Processes ; State Space Models E  Macroeconomics and Monetary Economics > E4  Money and Interest Rates > E41  Demand for Money 
Item ID:  25525 
Depositing User:  Levent Korap 
Date Deposited:  28 Sep 2010 20:36 
Last Modified:  04 Oct 2019 16:23 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/25525 