Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142574
Authors: 
Kumar, Saten
Year of Publication: 
2010
Series/Report no.: 
EERI Research Paper Series 12/2010
Abstract: 
The Pedroni (2000) panel cointegration method is used to estimate the cointegrating equations for the demand for narrow money for a panel of five Pacific Island Countries (Fiji, Samoa, Solomons, Vanuatu and Papua New Guinea) for the period 1975-2007. The effects of financial reforms are analyzed with estimates from sub-sample periods. Our results suggest that there is a unique cointegrated long run relationship between real narrow money, real income and nominal rate of interest. The major finding is that the money demand function has been stable and financial reforms are yet to have any significant effects in the Pacific Island Countries.
Subjects: 
Demand for money
income elasticity
semi-interest rate elasticity
JEL: 
C33
E41
Document Type: 
Working Paper

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