Estimating and Analyzing the Money Demand Function: The Case of Algeria (1970-2011)

Mohammed Moussaoui, Sumaya Zirar

Abstract


This study aims at exploring the determinants of the demand for money in Algeria. the demand for money as a function of real income, interest rate, inflation rate, exchange rate and a dummy variable to reflect the external shocks, has been estimated using the Fully-Modified OLS to measure the demand elasticities with respect to this variables for the period (1970-2011).

Keywords


Monetary Stability, GDP, Money Demand, Unit Root, FM-OLS, M2.

Full Text:

PDF

Refbacks

  • There are currently no refbacks.