Skip to main content

Currency substitution and nonlinear error correction in Taiwan's demand for broad money

Buy Article:

$47.50 plus tax (Refund Policy)

We modify the conventional money demand function by including a real exchange rate variable to reflect the effect of currency substitution. Empirical evidence indicates that the variable is crucial to the long-run stability of Taiwan's money demand. After finding the failure of a linear error-correction model (ECM) in describing the dynamics of Taiwan's money demand, we apply a nonlinear ECM to examine its dynamics and support the appropriateness of the nonlinear model empirically.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Document Type: Research Article

Affiliations: 1: Institute of Economics, National Sun Yat-Sen University, Kaohsiung, Taiwan,Department of Economics, National Chung-Cheng University, Chia-Yi, Taiwan 2: Department of Economics, National Chung-Cheng University, Chia-Yi, Taiwan,Department of International Trade, Cheng-Shiu Technological University, Kaohsiung, Taiwan

Publication date: 01 July 2007

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more