Economic Reforms and the Stability of Long-run Demand for Money in China: Some Results from Co-integration Tests

Economic and Monetary Uncertainty and the Demand for Money in China

“…More recent studies have focused on the cointegration among the variables of money demand function and stability. Employing cointegration techniques, these studies find that the M2 monetary aggregate is cointegrated with income and certain other determinants of money demand, such as price level, interest rate, and economic activity (Baharumshah, Mohd, and Masih 2009;Bahmani-Oskooee and Wang 2007;Hafer and Kutan 1994;Huang 1994;Huang 2000;Lee and Chien 2008;Qin 1994).…”

Financial Liberalization and Money Demand Stability in China

“…In the case of china, a handful of research has been carried out on money demand stability [2][3][4][5][6]. On a broad-spectrum, the previous literature has employed standard estimation technique or cointegration techniques to estimate money demand in China from different aspects such as the definition of monetary aggregate, the variables that should be included in the money demand function, the effects of economic reform on money demand, and the causal relationship between monetary aggregate and some other macroeconomic indicators.…”