The Demand for Money in Austria

Hayo, Bernd

doi:10.2139/ssrn.152229

Cited by 4 publications

(4 citation statements)

References 31 publications

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“…As evident from the unrestricted estimate, the hypothesis that the elasticity of money demand with respect to GDP equals one cannot be rejected (p-value ¼ 0.56). This is in line with the results of Hayo (2000) for narrow money demand in Austria over the period 1965:1-1987:4. However, unlike Hayo, who uses a long-term interest rate and obtains no significant relationship, I find the short-term interest rate to be a relevant indicator for the opportunity cost of holding money.…”

Section: Money Demand and Monetary Disequilibriumsupporting

confidence: 91%

“…The rationale for the choice of the year 1985 as starting point is that there were a number of structural changes (relevant for both money and reserve demand) at the beginning of the 1980s. Hayo (2000) identifies a structural break in the demand for narrow money in 1979, which was probably due to the introduction of a new banking law and an agreement to coordinate deposit interest rates in 1979 (Ziegelschmidt 1985). Furthermore, the loose DM orientation of the exchange rate, which had begun in the late 1970s, was turned into a fixed exchange rate system in 1981/82.…”

Section: Money Demand and Monetary Disequilibriummentioning

confidence: 99%

“…Third, there were no severe, fundamental balance of payments disequilibria in the period 1985-97. Fourth, Austria's demand for money was stable during the period of investigation (see Hayo 2000). Note that the two latter assumptions are particularly important for the (indirect) test of the monetary approach to the balance of payments by incorporating the monetary disequilibrium.…”

Section: Reserve Demand and The Role Of Monetary Disequilibriummentioning

confidence: 99%

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Austria's Demand for International Reserves and Monetary Disequilibrium: The Case of a Small Open Economy with a Fixed Exchange Rate Regime

Badinger

2004

Economica

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Using a vector error correction approach, I estimate Austria's demand for international reserves over the period 1985:1–1997:4 and test for short‐run effects of the disequilibrium on the national monetary market. I find that Austria's long‐run reserve demand can be described as a stable function of imports, uncertainty and the opportunity cost of holding reserves with strong economies of scale. The speed of adjustment takes a value of 38 per cent. The results confirm that an excess of money demand (supply) induces an inflow (outflow) of international reserves as postulated by the monetary approach to the balance of payments.

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Section: Money Demand and Monetary Disequilibriumsupporting

confidence: 91%

Section: Money Demand and Monetary Disequilibriummentioning

confidence: 99%

Section: Reserve Demand and The Role Of Monetary Disequilibriummentioning

confidence: 99%

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Austria's Demand for International Reserves and Monetary Disequilibrium: The Case of a Small Open Economy with a Fixed Exchange Rate Regime

Badinger

2004

Economica

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“…Wesche's main finding was that money demand becomes unstable when Germany is excluded from the area aggregate. Moreover, if one also includes the countries shadowing the Deutsche Mark which also enjoyed stable money demand, such as Austria and the Benelux countries, where money demand is found to be stable (see Hayo (2000) and Fase and Winder (1996), respectively), the importance of the German factor increases even more.…”

Section: The "German Size" Factormentioning

confidence: 99%

Why has Broad Money Demand been More Stable in the Euro Area than in Other Economies? A Literature Review

Calza¹,

Sousa²

2007

CCM

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Non-technical summary 1 Introduction 2 Money demand (in)stability in the US, the UK and Japan 3 Money demand stability in the euro area 3.1 Weaker impact of financial innovation in the euro area compared to non-euro area countries 3.2 Factors related to aggregation procedure 3.2.1 The "averaging-out" of desynchronised shocks to national money demand 3.2.2 The internalisation of currency substitution within Europe 3.2.3 The "German size" factor 4 Conclusions References European Central Bank working paper series

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Will the Euro Bring Economic Crisis to Europe?

Arestis

Sawyer

2001

SSRN Journal

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Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. www.econstor.eu Working Paper No. 322 Will the Euro Bring Economic Crisis to Europe?

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The Demand for Money in Austria

Cited by 4 publications

References 31 publications

Austria's Demand for International Reserves and Monetary Disequilibrium: The Case of a Small Open Economy with a Fixed Exchange Rate Regime

Austria's Demand for International Reserves and Monetary Disequilibrium: The Case of a Small Open Economy with a Fixed Exchange Rate Regime

Why has Broad Money Demand been More Stable in the Euro Area than in Other Economies? A Literature Review

Will the Euro Bring Economic Crisis to Europe?

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