Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18407
Authors: 
Siliverstovs, Boriss
Year of Publication: 
2007
Series/Report no.: 
DIW Discussion Papers 675
Abstract: 
This study develops a parsimonious stable coe?cient money demand model for Estonia for the period from 1995 till 2006. Using the Johansen Full Information Maximum Likelihood framework the two cointegrating vectors are found among the system variables including the real money balances, the gross domestic product, the long- and short-term interest rates, and the rate of inflation. The first cointegrating vector is identified as the money demand function whereas the second as the interest rate parity. Our study contributes to better understanding of the factors shaping the demand for money in the new Member States of the European Union that committed themselves to adopting of the Euro currency in the near future.
Subjects: 
M2 money demand
stability
new EU member states
Estonia
JEL: 
C32
E41
Document Type: 
Working Paper

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