Money Demand and Inflation in Dollarized Economies : The Case of Russia /

Money demand in dollarized economies often appears to be highly unstable, making it difficult to forecast and control inflation. In this paper, we show that a stable money demand function for Russia can be found for "effective broad money," which includes an estimate of foreign cash holdin...

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Hlavní autor: Ohnsorge, Franziska
Další autoři: Oomes, Nienke
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2005.
Edice:IMF Working Papers; Working Paper ; No. 2005/144
On-line přístup:Full text available on IMF
Popis
Shrnutí:Money demand in dollarized economies often appears to be highly unstable, making it difficult to forecast and control inflation. In this paper, we show that a stable money demand function for Russia can be found for "effective broad money," which includes an estimate of foreign cash holdings. Moreover, we find that an excess supply of effective broad money is inflationary, while other excess money measures are not, and that effective broad money growth has the strongest and most persistent effect on short-run inflation.
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Fyzický popis:1 online resource (30 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
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