Money demand in Ireland 1972-1989: a dynamic equation
Citation:Hurley, Margaret; Guiomard, Cathal. 'Money demand in Ireland 1972-1989: a dynamic equation'. - Economic & Social Review, Vol. 21, No. 4, July, 1990, pp. 387-407. Dublin: Economic & Social Research Institute
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The relationship between the demand for real money and its principal determinants is the vital link by which the actions of the monetary authorities affect the real economy. The estimation of money demand functions that are stable over a long period of time has traditionally, however, proved difficult. Here we attempt to overcome these difficulties by using econometric methods that analyse the time series properties of the data and that also rely on careful diagnostic testing. We achieve some success in estimating a relationship between real M3 and a small number of determinants that appears to be satisfactorily stable over an 18 year period.
Publisher:Economic & Social Research Institute
Type of material:Journal Article
Availability:Full text available