Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/63107 
Year of Publication: 
2003
Series/Report no.: 
Memorandum No. 2003,12
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
This paper investigates the demand for broad money in Venezuela, over a period of financial crisis and substantial exchange rate fluctuations. The analysis shows that there exist a long run relationship between real money, real income, inflation, the exchange rate and the domestic interest rate, that remains stable over major policy changes and large shocks. The long run properties emphasize that both inflation and exchange rate depreciations have negative effects on real money demand. The long run relationship is embedded in a dynamic equilibrium correction model with constant parameters.
Subjects: 
Money demand
open economy
cointegration
dynamic specifications
equilibrium correction models
JEL: 
C22
C32
E41
Document Type: 
Working Paper

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