A stable demand for money despite financial crisis: The case of Venezuela

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Memorandum ; No. 2003,12

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Demand for Money
• Subject: Money demand ; open economy ; cointegration ; dynamic specifications ; equilibrium correction models ; Geldnachfrage ; Venezuela ; Finanzmarktkrise

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Bjørnland, Hilde C.
• Event: Veröffentlichung
• (who): University of Oslo, Department of Economics
• (where): Oslo
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/63107
• Last update: 20.09.2024, 8:21 AM CEST