A money demand function with output uncertainty, monetary uncertainty, and financial innovations

被引:43
作者
Choi, WG [1 ]
Oh, S
机构
[1] Int Monetary Fund, Washington, DC 20431 USA
[2] Seoul Natl Univ, Seoul 151, South Korea
关键词
D O I
10.1353/mcb.2003.0034
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
In a general equilibrium framework incorporating the money-in-the-utility function approach. we show that output uncertainty and monetary uncertainty as well as output, interest rates, and financial innovations affect money demand. The estimated long-run relationships are consistent with our postulated relation but not with the conventional one. Our model delivers a high income elasticity consistent with cross-sectional evidence and helps resolve M I demand puzzles. The model estimated in dynamic error correction form exhibits a good level of stability and forecastability, providing little support for the recent de-emphasis of monetary aggregates due to the instability of money demand.
引用
收藏
页码:685 / 709
页数:25
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