It is imperative to explore the stability of money demand function (MDF) due its effectiveness in strength monetary policy. This paper employs ARDL approach examine whether M3 MDF stable for Gulf Cooperation Council (GCC) consisting six Arabian countries. The also uses CUSUMSQ and CUSUM tests this purpose. Unit root test results indicate that variables have unit roots with varying degrees. reve...

This paper investigated the relationship between expected inflation and nominal interest rates in Nigeria and the extent to which the Fisher effect hypothesis holds, for the period 1970-2012. We attempted to advance the field by testing the traditional closed-economy Fisher hypothesis and an augmented Fisher hypothesis by incorporating the foreign interest rate and nominal effective exchange ra...

The main purpose of this study is to ascertain the determinants demand for money and its stability in Azerbaijan using monthly time series data spanning from January 2006 November 2020. Johansen cointegration, vector error correction model (VECM) Impulse Response Function were employed investigate relationship between real (M1), macroeconomic variables, namely income, inflation, interest rate e...

the objective of this study is to estimate the demand for money in iran using the autoregressive distributed lag (ardl) approach to cointegration analysis. the empirical results show that there is a unique cointegrated and stable long-run relationship among m1 monetary aggregate, income, inflation and exchange rate. we find that the income elasticity and exchange rate coefficients are positive ...

The objective of this study was to analyze the money demand function for Zambia period 1978 – 2018 using annual time series data. employed Gregory Hansen cointegration technique. also Hendry’s General Specific technique estimate error correction model by obtaining a parsimonious model. results test confirmed presence cointegrating relationship and selected GH-2 as most plausible with level shif...