Citation
Baharumshah, Ahmad Zubaidi and Mohd, Siti Hamizah and Mansur, A.
(2009)
The stability of money demand in China : evidence from the
ARDL model.
Economic Systems, 33 (3).
pp. 231-244.
ISSN 0939-3625
Abstract
This study examines the demand for broad money (M2) in China using the autoregressive distributed lag (ARDL) cointegration framework. The results based on the bounds testing procedure confirm that a stable, long-run relationship exists between M2 and its determinants: real income, inflation, foreign interest rates and stock prices. Importantly, our results reveal that stock prices have a significant wealth effect on long- and short-run broad money demand; its omission can lead to serious misspecifications in the money demand function (MDF). This finding is consistent with the notion that asset inflation (deflation) has systematic influence on the pattern of monetary aggregates.
Download File
Official URL or Download Paper: http://dx.doi.org/10.1016/j.ecosys.2009.06.001
|
Additional Metadata
| Item Type: | Article |
|---|---|
| Divisions: | Faculty of Economics and Management |
| DOI Number: | https://doi.org/10.1016/j.ecosys.2009.06.001 |
| Publisher: | Elsevier |
| Keywords: | Money demand; Stability; Stock price; ARDL |
| Depositing User: | Emelda Mohd Hamid |
| Date Deposited: | 18 Oct 2013 04:02 |
| Last Modified: | 03 Feb 2016 07:45 |
| URI: | http://psasir.upm.edu.my/id/eprint/17342 |
| Statistic Details: | View Download Statistic |
Actions (login required)
 |
View Item |