Since 2014
The Stability Of The Money Demand Function In South Africa: A VAR-Based Approach
International Business & Economics Research Journal
View Archive Info| Field | Value | |
| Title |
The Stability Of The Money Demand Function In South Africa: A VAR-Based Approach
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| Creator |
Kapingura, Forget Mingiri
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| Subject |
Finance
Money Demand; Johansen Co-integration; South Africa |
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| Description |
The study examines the stability of the money demand function from 1994 to 2012 using quarterly data. The study utilises the Johansen co-integration to analyse the long-term relationship between the money demand function and its determinants. The CUSUM and CUSUMSQ were also used to examine the stability of the South African money demand function. The co-integration test proved that there exists a long-term relationship between the money demand function and its determinants. However, the CUSUM and CUSUMSQ proved that the South African money demand was unstable from 2003 to 2007. This therefore justifies the use of the repo rate as a monetary policy tool as compared to the monetary aggregates.
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| Publisher |
The Clute Institute
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| Date |
2014-10-31
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
https://www.cluteinstitute.com/ojs/index.php/IBER/article/view/8935
10.19030/iber.v13i6.8935 |
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| Source |
International Business & Economics Research Journal (IBER); Vol 13 No 6 (2014); 1471-1482
2157-9393 1535-0754 10.19030/iber.v13i6 |
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| Language |
eng
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| Relation |
https://www.cluteinstitute.com/ojs/index.php/IBER/article/view/8935/8894
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