Money Demand in the Netherlands
Summary:
This paper analyzes the demand for narrow money balances in the Netherlands. Demand for narrow money balances had increased markedly in relation to GNP in the Netherlands throughout the 1980s. This phenomenon could not be explained satisfactorily with traditional Goldfeld-type money demand functions which had performed well until that time. Drawing on advances in dynamic modeling from the error corrections and cointegration literature, and incorporating yield-curve effects and the exchange rate of the guilder with the U.S. dollar as additional monetary indicators significantly improves the performance of money demand estimates.
Series:
Working Paper No. 1991/057
Subject:
Asset and liability management Demand for money Exchange rates Financial services Foreign exchange Liquidity indicators Liquidity management Money Short term interest rates Yield curve
English
Publication Date:
June 1, 1991
ISBN/ISSN:
9781451967166/1018-5941
Stock No:
WPIEA0571991
Pages:
47
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