Template-Type: ReDIF-Paper 1.0
Author-Name: Ivars Tillers
Author-X-Name-First: Ivars
Author-X-Name-Last: Tillers
Author-Workplace-Name: Bank of Latvia
Title: Money Demand in Latvia
Abstract: The econometric analysis of the demand for broad money in Latvia suggests a stable relationship of money demand. The analysis of parameter exogeneity indicates that the equilibrium adjustment is driven solely by the changes in the amount of money. The demand for money in Latvia is characterised by relatively high income elasticity  typical for the economy in a monetary expansion phase. Due to stability, close fit of the money demand function and rapid equilibrium adjustment, broad money aggregates can be used as indicators of the economic activity.
Creation-Date: 2004-11-05
File-URL: https://www.bank.lv/public_files/images/img_lb/izdevumi/english/citas/Money_Demand_Latvia.pdf
File-Format: Application/pdf
File-URL: https://www.macroeconomics.lv/sites/default/files/money_demand_latvia.pdf
File-Format: Application/pdf
Number: 2004/03
Classification-JEL: C22, C32, E41
Keywords: money demand, cointegration, exogeneity, vector error correction
X-File-Ref: https://repec.bank.lv/refs/wpaper200403.txt
Handle: RePEc:ltv:wpaper:200403