How stable is M2 money demand function in Japan?

Authors
Bahmani-Oskooee, M
Citation
M. Bahmani-oskooee, How stable is M2 money demand function in Japan?, JPN WORLD E, 13(4), 2001, pp. 455-461
Citations number
25
Categorie Soggetti
Economics
Journal title
JAPAN AND THE WORLD ECONOMY
ISSN journal
09221425 → ACNP
Volume
13
Issue
4
Year of publication
2001
Pages
455 - 461
Database
ISI
SICI code
0922-1425(200112)13:4<455:HSIMMD>2.0.ZU;2-G
Abstract
The cointegrating property of the demand for money in Japan has been invest igated by several researchers who have provided mixed results. None has inv estigated its stability. In this paper we employ the ARDL approach combined with CUSUM and CUSUMSQ tests to show that not only M2 is cointegrated with income and interest rate, but the estimated relation is stable. (C) 2001 E lsevier Science B.V. All rights reserved.