Logo
Munich Personal RePEc Archive

A Panel Data Approach to the Demand for Money and the Effects of Financial Reforms in the Asian Countries

Rao, B. Bhaskara and Kumar, Saten (2008): A Panel Data Approach to the Demand for Money and the Effects of Financial Reforms in the Asian Countries.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_6565.pdf]
Preview
PDF
MPRA_paper_6565.pdf

Download (62kB) | Preview

Abstract

Three panel data estimation methods are used to estimate the cointegrating equations for the demand for money (M1) in 14 developing Asian countries. Tests for the effects of financial reforms are made with estimates for two sub-samples of 1970-1985 and 1986-2005. Our results show that money demand functions in these Asian countries are stable and financial reforms have yet to have any significant effects. This implies that the central banks of these countries should use money supply, instead of the rate of interest, as the monetary policy instrument.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.