Showing 4 results for Money Demand
Dr Alireza Erfani, Khayam Sadeghi, Mohammad Mahdi Poya,
Volume 4, Issue 13 (10-2013)
Abstract
Simple sum monetary aggregation approach that based upon perfect substitution of monetary components assumption is inconsistent with microeconomics theories. In this research, using quarterly data of Iran over period 1370:1–1388:1, we first calculate monetary aggregation based on divisia index for both measures of money (M1, M2) and then estimate the demand functions for money for divisia and simple sum monetary aggregations separately.
The results show that the adjustment speed of divisia aggregations is more than that of simple sum aggregations and the demand functions for money that construct by divisia aggregations, are more stable.
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Volume 5, Issue 15 (3-2014)
Abstract
IN ACCORDANCE TO DEVELOPMENT OF INFORMATION AND COMMUNICATION TECHNOLOGY IN IRAN, ELECTRONIC BANKING HAS BEEN DEVELOPED IN RECENT DECADE.A MEANINGFUL TRANSFORMATION HAS BEEN PLACED IN THE STYLE OF EXISTING BANKING SYSTEM SERVICES, BY SIGNIFICANT INCREASE IN THE USE OF ELECTRONIC BANKING TOOLS IN TEN YEARS.
THE REFLECTION OF THIS PHENOMEN IS CLEAR IN THE BEHAVIOR OF PEOPLE AND BANKING SYSTEM WHO CARE ABOUT CASH, MONEY DEMAND PREFRENCES AND VARIATION IN THE COMPOSITION OF BANK RESOURCES.THEREFORE EFFECTIVENESS OF E-BANKING ON VARIABLES SUCH AS MONEY DEMAND IS A TOPIC WHICH APPEARS ESSENTIAL TO STUDY.
DEMAND MONEY FUNCTION IS ONE OF THE MAIN IMPORTANT PARTS OF MONETARY SYSTEM AND PLAY CRUCIAL ROLE IN TRANSMISSION OF MONETARY POLICY TO THE REAL ECONOMIC SECTION. THE IMPACT OF THIS ON OTHER COMPONENT OF ECONOMIC SYSTEM, BOTH MONETARY AND NON-MONETARY IS INEVITABLE.
IN OTHER WORDS, TO ANALYZE MONETARY ISSUES AND SOLVING THE PROBLEMS, IT IS NECESSARY TO UNDERSTAND THE NATURE OF MONEY DEMAND. IN THIS PAPER, THE DEMAND FUNCTION HAS BEEN ESTIMATED BY USING AR METHOD AND ENTERING EXOGENOUS VARIABLES IN MARKOV SWITCHING VECTOR AUTO REGRESSION MODEL.
FOR MODELING OF MONEY DEMAND FUNCTION, SEASONAL DATA BETWEEN 2002 TO 2011 HAVE BEEN USED. ALSO THE EFFECT OF TRANSACTION VOLUME THROUGH POINT OF SALE(POS) AND AUTOMATIC TELLER MACHINE (ATM) AS EN-BANKING INDEX HAS BEEN DETERMINED.
ACCORDING TO STABILITY TESTS, ESTIMATING THE MONEY DEMAND WICHE CONTAIN EN-BANKING VARIABLES IS UNSTABLE.
THERFOR, IT CAN BE STATED THAT THE RESULTS OF FISCAL AND MONETARY POLICIES OF THE CENTRAL BANK AND THE GOVERNMENT TO ACHIEVE ITS GOALS DUE TO UNCERTAIN DEMAND MONEY POSITION, SOMETIMES IS REVERSED.
Mostafa Karimzadeh,
Volume 5, Issue 15 (3-2014)
Abstract
The specification of money demand function is one of the most
important and disputable subjects in economics. With regard to its importance, many of economists have represented several theorizes about money demand.
The Sidrauski monetary model is an interesting theory of money demand.
Sidrauski extended Ramsey model with regard real balance of money which in the
Sidrauski model the utility function involves both consumption and money. Application
of Sidrauski model can help to extend
macroeconomics with micro foundations in Iran and prepares new scopes for
researchers. The main aim of this paper is to estimate the Sidrauski monetary model for Iranian economy over the period
of 1979 -2011. For this purpose, the Engle – Granger, ARDL and Johansen-
Juselius approaches have been used for estimation of long run relationship of
money demand. The empirical results of econometric estimation of co-integration
vector indicated a long run relationship between per capita money demand, per
capita consumption, and inflation rate, rate of interest, exchange rate, per
capita income, and stock exchange price index. Our
results showed that per capita consumption and per capita income have positive
and significant effect on per capita money demand. Whereas inflation rate, rate
of interest, exchange rate and stock exchange price index
have negative and significant effect on per capita money demand.
Ali Taiebnia, Hamed Farnam,
Volume 6, Issue 19 (3-2015)
Abstract
This paper seeks to investigate and analyze the money demand function and its Engle curve in Iran. Money demand function and its Engle curve have been estimated through EASI demand system by making use of monthly data 1995:04-2007:03. The investigation of money demand function shows that monetary elements are weak substitutions of each other. Thus, some policy recommendation is provided on the basis of estimated elasticity (Income, Price, cross Price, and Morishima). Moreover, the investigation of Engle curve reflects that by the increase of income, first, individuals extract their money from demand deposit. Secondly, investment in timed deposits increases and thirdly, no change is observed in the amount of money being held as currency and travel checks.
