Modelling Demand for Money in Latvia
Quantile Journal, Vol. 1, pp. 67-79, 2006
Posted: 20 Oct 2006
This study develops an error correction model for money demand in Latvia. The core of the model is a single cointegrating vector containing information about the long-run equilibrium between the real money balances, gross domestic product, and long-term interest rate. The model exhibits coefficient stability and has an ability to accurately predict the money balances during the last three years.
Note: Downloadable document is in Russian.
JEL Classification: C32, E41
Suggested Citation: Suggested Citation