Title: A Partial Adjustment Model of China's Money Demand
Abstract: This paper constructs a partial adjustment model to estimate Chinas money demand function in the period of its economic transition process. Compared with previous domestic researches, this model is more pragmatic as it postulates money demand and money supply are in disequilibrium. The result shows that M1 demand is determined by GDP, stock value and interest rate, and the dynamic adjustment speed to equilibrium is 0\^52.The result also indicates that the demand for M2 has no significant relationship with these variables, and the authors explain that this maybe caused by the calibration problem of M2.In the end, a brief summary is given.
Publication Year: 2002
Publication Date: 2002-01-01
Language: en
Type: article
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