Selected factors influencing the money demand development in 1994-2000

The paper is focused on selected factors influencing the money demand devel opment in the Czech Republic from 1994 to 2000. The basic theoretical appro aches to the money demand issue and the theoretical background of the analy sis are described. The multi- and sing I-equational models as a basis for c ointegration analysis are used. As the main theoretical basis the Ph. Arest is'es model, adjusted for conditions of the Czech Republic, is used. It is confirmed a premise that the money demand development is in the long-run re lationship with the GDP growth and interest rates development. This conclus ion is valid for balances both in real and nominal money. It is discovered the impact of the interest rates development into the structure of the mone y demand.