Resource title

Money Demand in Estonia

Resource image

image for OpenScout resource :: Money Demand in Estonia

Resource description

This study develops a parsimonious stable coe?cient money demand model for Estonia for the period from 1995 till 2006. Using the Johansen Full Information Maximum Likelihood framework the two cointegrating vectors are found among the system variables including the real money balances, the gross domestic product, the long- and short-term interest rates, and the rate of inflation. The first cointegrating vector is identified as the money demand function whereas the second as the interest rate parity. Our study contributes to better understanding of the factors shaping the demand for money in the new Member States of the European Union that committed themselves to adopting of the Euro currency in the near future.

Resource author

Boriss Siliverstovs

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18407

Resource license

Adapt according to the presented license agreement and reference the original author.