Money demand stability is a crucial issue in order to have monetary policy e cacy. Money stability is particularly endangered when substantial changes occur in the monetary system. By implementing several econometric techniques, this study intends to estimate a money demand in Italy, and its main aim is to assess the consistency and the stability of the estimated relations. Moreover, the degree of stability of money demand is tested using the monetary aggregates M1 and M2 as proxies. The results show that money demand in Italy has been considerably stable despite the several changes to its monetary system, and that the more stable relations are obtained, the narrower the monetary aggregate employed as a proxy for money demand.
The Stability of Money Demand in the Long-Run: Italy 1861-2010
NAPOLITANO, Oreste
2013-01-01
Abstract
Money demand stability is a crucial issue in order to have monetary policy e cacy. Money stability is particularly endangered when substantial changes occur in the monetary system. By implementing several econometric techniques, this study intends to estimate a money demand in Italy, and its main aim is to assess the consistency and the stability of the estimated relations. Moreover, the degree of stability of money demand is tested using the monetary aggregates M1 and M2 as proxies. The results show that money demand in Italy has been considerably stable despite the several changes to its monetary system, and that the more stable relations are obtained, the narrower the monetary aggregate employed as a proxy for money demand.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
