Cover IMF Working Papers
Buy Book in Print
Broad Money Demand and Financial Liberalization in Greece
Author:
Mr. Sunil Sharma
Search for other papers by Mr. Sunil Sharma in
Current site
Google Scholar Close
and
Mr. Neil R. Ericsson null

Search for other papers by Mr. Neil R. Ericsson in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1996: Issue 062
Language:
English
Publication Date:
01 Jul 1996
DOI:
https://doi.org/10.5089/9781451848243.001
ISBN:
9781451848243
ISSN:
1018-5941
Pages:
55
Keywords:
WP; money demand; broad money; rate of return; money demand function; price level; rate of inflation; Treasury bill rate; modeling money demand; money demand equation; demand deposit; constant term; money demand model; money demand relation; Demand for money; Treasury bills and bonds; Monetary base; Inflation; Deposit rates
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (3.8 MB) Download Epub
This paper develops a constant, data-coherent, error correction model for broad money demand (M3) in Greece. The model contributes to a better understanding of the effects of monetary policy in Greece, and of the portfolio consequences of financial innovation in general. The broad monetary aggregate M3 was targeted until recently, and current Greek monetary policy still uses such aggregates as guidelines, yet analysis of this aggregate has been dormant for over a decade. Inspite of large fluctuations in the inflation rate, introduction of new financial instruments, and liberalization of the financial system, the estimated model is remarkably stable. The dynamics of money demand are important, with price and income elasticities being much smaller in the short run than in the long run.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund