Izvorni znanstveni članak
The determinants and stability of money demand in the Republic of Macedonia
Jordan Kjosevski
orcid.org/0000-0001-9608-4090
; Stopanska Banka AD – Skopje, Ohrid, Makedonija
Sažetak
The goal of this paper is to examine the long and short-run determinants, and stability of money demand (M1) in the Republic of Macedonia using monthly data from January 2005 to October 2012. The Johansen cointegration technique and VECM model were used to fi nd the long-run and short-term dynamic relationships in money demand model. Empirical results provide the evidence that exchange rate and interest rate payable on denar time deposits up to one month explains the most variations of money demand in the long-run, while interest rate is signifi cant only in short-run. Long-run money demand function is estimated to indicate slow speed of adjustment of removing the disequilibrium. Our fi nding shows that real money demand M1 in the Republic of Macedonia is stable in the analyzed period. The results obtained in this study suggest that the National Bank should carefully monitor the exchange rate and infl ation as two most important indicators of monetary policy, because these two determinants are the main drivers of demand for money in the short and long term.
Ključne riječi
Money demand; cointegration; vector error correction model; stability; Republic of Macedonia
Hrčak ID:
104181
URI
Datum izdavanja:
21.6.2013.
Posjeta: 2.802 *