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Прикладная эконометрика / Applied Econometrics  / №4 2016

DOES INDIA HAVE A STABLE DEMAND FOR MONEY FUNCTION AFTER REFORMS? A MACROECONOMETRIC ANALYSIS (150,00 руб.)

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Первый авторArora
АвторыOsatiEraghi A.
Страниц13
ID561266
АннотацияThe present study analyzes the stability of the demand for money function in India over the period 1991:M4–2014:M9 using co-integration and Vector Error Correction Mechanism (VECM) framework. From analysis, it has been observed that there exists a stable demand for money function in India during the post-reforms period, i. e. a long-run relationship does exist between demand for real balances, national output (Yt), rate of interest (Rt) and exchange rate (ERt). Two variables Yt and ERt have been observed to be affecting demand for real balances positively, while the observed effect of M2 is negative. Thus, the signs and magnitudes of all three regressors have been observed according to a-priori information without any paradoxical situation
Arora, N. DOES INDIA HAVE A STABLE DEMAND FOR MONEY FUNCTION AFTER REFORMS? A MACROECONOMETRIC ANALYSIS / N. Arora, A. OsatiEraghi // Прикладная эконометрика / Applied Econometrics .— 2016 .— №4 .— С. 26-38 .— URL: https://rucont.ru/efd/561266 (дата обращения: 26.05.2024)

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N. Arora, A. OsatiEraghi APPLIED ECONOMETRICS / ПРИКЛАДНАЯ ЭКОНОМЕТРИКА Прикладная эконометрика, 2016, т. 44, с. 25–37. <...> N. Arora, A. OsatiEraghi1 Does India have a stable demand for money function after reforms? <...> A macroeconometric analysis The present study analyzes the stability of the demand for money function in India over the period 1991:M4–2014:M9 using co-integration and Vector Error Correction Mechanism (VECM ) framework. <...> From analysis, it has been observed that there exists a stable demand for money function in India during the post-reforms period, i. e. a long-run relationship does exist between demand for real balances, national output (Yt exchange rate (ERt ), rate of interest (Rt ). <...> Two variables Yt and ERt for real balances positively, while the observed effect of M2 magnitudes of all three regressors have been observed according to a-priori information without any paradoxical situation. <...> Introduction facilitates to evaluate the subjects related to the effectiveness of monetary policy; an issue vital for achieving stable economic growth. <...> An effective and transparent monetary policy requires a strong relation between macroeconomic variables and output, income, interest rate, prices, etc. <...> When it is observed that the demand for money is a stable function, an exact and suitable impact of change in money supply on the other macroeconomic variables such as prices and outputs becomes predictable. <...> In such a case, the money supply will be a reliable way of attaining a constant inflation rate. <...> In simple, if the demand for money is ascertained well before in time then the central bank may pump the same amount of money supply in economy to attain stable price level. <...> Macroeconomics Макроэкономика 25 he main purpose of theoretical and empirical studies on estimation of demand for money function is to find a stable money demand function because stability is one of the preconditions of effectiveness of monetary policy in each economy. <...> Thus, the signs and 2016, 44 2016, 44 Thus, given the various advantages of estimating the demand for money function, a number of ПРИКЛАДНАЯ ЭКОНОМЕТРИКА / APPLIED ECONOMETRICS studies have been carried out around the world to analyze the stability of money demand function. <...> Hamori and Hamori (1999) analyzed a stable relationship between money <...>