Wealth, Financial Liberalization, and the Demand for Money in Japan

Financial Liberalization, Money Demand, and Monetary Policy in Asian Countries

“…The formal tests for cointegration suggest that at least one monetary aggregate in most of the countries investigated appears to have been related in a stable fashion to developments in income and interest rates over the long run. Long-run stability in money demand is also suggested more informally by the similarity between the long-run income elasticities estimated here and those for six of the countries reported in Aghevli and others (1979) 25 Compare with the explanation for the trend decline in the velocity of broad money in Japan offered in Corker (1990). 1 Values in parentheses are taken from Table 3 of Aghevli and others (1979).…”

Financial innovation and regional money

“…It should be noted that we regard the presence of cointegration as evidence of the stability between these variables, and for this purpose we use the panel cointegration method (Pedroni 1999 (Corker, 1990;Miyao 2000;Nagayasu, 2003).…”

“…The validity of the money demand function in Japan has been analyzed before (e.g., Corker, 1990;Miyao, 2000;Nagayasu, 2003); however, few e¤orts have been made to investigate the relationship between money and …nancial innovation despite the recent developments in economic theory (e.g., Alvarez and Lippi 2009) and the rapid progress in …nancial innovation.…”

Wealth and the demand for money: Empirical evidence for the Netherlands and Belgium

“…Examples are the Bundesbank (1995) for Germany, Hall etal. (1989) for the UK, Hunt and Volker (1981) for Australia, and Corker (1990) for Japan. Table 1 furthermore shows that both for The Netherlands and Belgium the demand for M1 has a higher income elasticity than M2 and M3, reflecting that M1 balances are mainly held for the purpose of carrying out transactions.…”