THE STABILITY OF LONG-RUN MONEY DEMAND IN WESTERN BALKAN COUNTRIES: AN EMPIRICAL PANEL INVESTIGATION

Kjosevski, Jordan and Petkovski, Mihail and Naumovska, Elena (2016) THE STABILITY OF LONG-RUN MONEY DEMAND IN WESTERN BALKAN COUNTRIES: AN EMPIRICAL PANEL INVESTIGATION. South East European Journal of Economics and Business, 11 (2). pp. 48-57.

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Abstract

The goal of this paper is to examine the stability of money demand (M1) in five Western Balkan countries using
quarterly data from 2005Q1 to 2014Q4. The dynamic ordinary least squares – DOLS method was used to
find the long-run relationships in a money demand model. The empirical results identify the long-run money
demand relationship among real M1 nominal interest rate, exchange rate, inflation and a dummy variable
for the effect of the European debt crisis. The estimated long-run coefficients are, respectively -0.086, 0.519,
0.002 and 0.030. Our findings imply that real money demand in Western Balkan countries was stable in the
analyzed period.

Item Type:	Article
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Depositing User:	UKLO Mrezha
Date Deposited:	27 May 2024 06:02
Last Modified:	27 May 2024 06:02
URI:	https://eprints.uklo.edu.mk/id/eprint/9984

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