Broad Money Demand and Financial Liberalization in Greece /

This paper develops a constant, data-coherent, error correction model for broad money demand (M3) in Greece. The model contributes to a better understanding of the effects of monetary policy in Greece, and of the portfolio consequences of financial innovation in general. The broad monetary aggregate...

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Hlavní autor: Sharma, Sunil
Další autoři: Ericsson, Neil
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 1996.
Edice:IMF Working Papers; Working Paper ; No. 1996/062
On-line přístup:Full text available on IMF
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Shrnutí:This paper develops a constant, data-coherent, error correction model for broad money demand (M3) in Greece. The model contributes to a better understanding of the effects of monetary policy in Greece, and of the portfolio consequences of financial innovation in general. The broad monetary aggregate M3 was targeted until recently, and current Greek monetary policy still uses such aggregates as guidelines, yet analysis of this aggregate has been dormant for over a decade. Inspite of large fluctuations in the inflation rate, introduction of new financial instruments, and liberalization of the financial system, the estimated model is remarkably stable. The dynamics of money demand are important, with price and income elasticities being much smaller in the short run than in the long run.
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Fyzický popis:1 online resource (55 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students