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Applied Economics Letters Volume 15, 2008 - Issue 5
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Original Articles

Demand for money in Sri Lanka, 1952–2002

Barry Reilly Department of Economics, University of Sussex, Brighton, BN1 9SN, UKCorrespondence[email protected]
&
Michael Sumner Department of Economics, University of Sussex, Brighton, BN1 9SN, UK
Pages 343-347 | Published online: 25 Mar 2008
 
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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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