The Monthly Transaction Money Demand in Croatia

Objavljeno: 20.9.2000.
Publikacija Istraživanja
Broj W - 5
Autor Ante Babić
Datum Rujan 2000.
JEL E41, E47, E31,P24
ISSN 1334-0077

Ključne riječi

M0, M1, money demand, transaction money demand

In this paper, the monthly transaction money demand function in Croatia is empirically estimated. It is a continuation of previous money demand research by the author based on quarterly data in 1999. The main emphasis here is on a classical OLS analysis of transaction money demand relationships for various transaction money aggregates: currency outside banks - M0, currency outside banks plus demand deposits - M1, and M1 plus budgetary and extra-budgetary transaction balances held with commercial banks - M1a. The results are confirmed by stationarity tests, cointegration, Granger causality and unrestricted VARs.