This paper, therefore, uses quarterly data for the period of 1996 to 2013 to estimate India's money demand function, which is derived from real money balances, real interest rates and output and shed light on its characteristics.
Lastly, analysis results are used to discuss the characteristics of India's money demand function and the implications for India's monetary policy.
This can again be seen in analogy to the interest rate driven speculative money demand in Keynesian theory.
Both the hypotheses include the implicit assumption that overall money demand stays constant.
The money stock in an economy is determined by the interaction of forces money demand
and money supply.
The ARDL bound test approach allows consistent estimation on the nexus of financial liberalisation with money demand
for both long run and short run.
Miller (1991) and Mehra (1991 ; 1993) include income, interest rate, and price level in a money demand
The fundamental evolution of money stocks is determined in the context of money demand
We therefore drop M1 from the analysis and estimate a short-run money demand
function for M2.
As mentioned earlier, however, in order to identify policy-driven innovations to the monetary base one must control for changes in the monetary base originating from shocks to the money multiplier and real money demand
Traditionally, stock market prices have not been considered as a determinant of the money demand
function until Friedman (1988) showed its relevance.
Some of the previous studies on money demand
have neglected the role of foreign monetary developments.
However, beginning around 2003, most euro area money demand
functions began exhibiting instability, leading some commentators to infer that the role of money had been "downgraded" in the ECB's monetary policy strategy (see Section 2).
In this paper, we quantify welfare costs of inflation for Pakistan for the period 1960-2007 using semi-log and double-log money demand
Big money demands
big performances, and our clubs have to face that challenge, and show us that they can mix it with the very best.