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Original Articles

Demand for money in Sri Lanka, 1952–2002

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Pages 343-347 | Published online: 25 Mar 2008
 

Abstract

The key issue in the analysis of demand for money in Sri Lanka is shown to be the specification of opportunity cost. A coherent definition yields stable long-run estimates of the demand function consistent with economic theory for all measures of money.

Notes

1 CUSUM and CUMSUMSQ plots available from the authors on request.

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