Stability and non-linear dynamics in the broad demand for money in Spain. (Q1853728)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Stability and non-linear dynamics in the broad demand for money in Spain. |
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Stability and non-linear dynamics in the broad demand for money in Spain. (English)
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22 January 2003
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In this article we estimate a money demand function for broad money in Spain in the period 1978--1998. Stability tests indicate the existence of a stable money demand function in the long but not in the short run. Using recent nonlinear techniques, we find that such instabilities are caused by a non-linear adjustment of real balances towards a stable long-run equilibrium.
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Buffer stock
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Cointegration
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Money demand
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Non-linear dynamics
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Target-bounds
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