The impact of symmetric and asymmetric exchange rate fluctuations on demand for money in Pakistan

References

• Adam, C. S. 2009. “Financial Innovation and the Demand for£M3 in the UK 1975–86.” Oxford Bulletin of Economics and Statistics 53 (4): 401–424. doi:10.1111/j.1468-0084.1991.mp53004004.x.
   Google Scholar
• Ahmad, M., and A. H. Khan. 1990. “A Reexamination of the Stability of the Demand for Money in Pakistan.” Journal of Macroeconomics 12 (2): 307–321. doi:10.1016/0164-0704(90)90035-9.
   Web of Science ®Google Scholar
• Akhtar, M. A. 1974. “The Demand for Money in Pakistan.” The Pakistan Development Review 13 (1): 40–54. doi:10.30541/v13i1pp.40-54.
   Google Scholar
• Akinlo, A. E. 2006. “The Stability of Money Demand in Nigeria: An Autoregressive Distributed Lag Approach.” Journal of Policy Modeling 28 (4): 445–452. doi:10.1016/j.jpolmod.2005.09.001.
   Web of Science ®Google Scholar
• Alsamara, M., and Z. Mrabet. 2019. “Asymmetric Impacts of Foreign Exchange Rate on the Demand for Money in Turkey: New Evidence from Nonlinear ARDL.” International Economics and Economic Policy 16 (2): 335–356. doi:10.1007/s10368-018-0421-y.
   Google Scholar
• Anwar, S., and N. Asghar. 2012. “Is Demand for Money Stable in Pakistan?” Pakistan Economic Social Review 50 (1): 1–22.
   Google Scholar
• Arango, S., and M. I. Nadiri. 1981. “Demand for Money in Open Economies.” Journal of Monetary Economics 7 (1): 69–83. doi:10.1016/0304-3932(81)90052-0.
   Web of Science ®Google Scholar
• Arize, A. C., and S. S. Shwiff. 1998. “The Appropriate Exchange-Rate Variable in the Money Demand of 25 Countries: An Empirical Investigation.” The North American Journal of Economics and Finance 9 (2): 169–185. doi:10.1016/S1062-9408(99)00004-2.
   Google Scholar
• Avouyi‐Dovi, S., F. Drumetz, and J. G. Sahuc. 2012. “The Money Demand Function for the Euro Area: Some Empirical Evidence.” Bulletin of Economic Research 64 (3): 377–392. doi:10.1111/j.1467-8586.2010.00388.x.
   Web of Science ®Google Scholar
• Baharumshah, A. Z., S. H. Mohd, and A. Mansur M. Masih. 2009. “The Stability of Money Demand in China: Evidence from the ARDL Model.” Economic Systems 33 (3): 231–244. doi:10.1016/j.ecosys.2009.06.001.
   Google Scholar
• Bahmani-Oskooee, M. 1996. “The Black Market Exchange Rate and Demand for Money in Iran.” Journal of Macroeconomics 18 (1): 171–176. doi:10.1016/S0164-0704(96)80010-3.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M. 2001. “How Stable is M2 Money Demand Function in Japan?” Japan and the World Economy 13 (4): 455–461. doi:10.1016/S0922-1425(01)00064-0.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., and M. P. Barry. 2000. “Stability of the Demand for Money in an Unstable Country: Russia.” Journal of Post Keynesian Economics 22 (4): 619–629. doi:10.1080/01603477.2000.11490262.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., and M. T. Bohl. 2000. “German Monetary Unification and the Stability of the German M3 Money Demand Function.” Economics Letters 66 (2): 203–208. doi:10.1016/S0165-1765(99)00223-2.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., and A. Gelan. 2006. “Black Market Exchange Rate and the Productivity Bias Hypothesis.” Economics Letters 91 (2): 243–249. doi:10.1016/j.econlet.2005.09.016.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., F. Halicioglu, and S. Bahmani. 2017. “Do Exchange Rate Changes Have Symmetric or Asymmetric Effects on the Demand for Money in Turkey?” Applied Economics 49 (42): 4261–4270. doi:10.1080/00036846.2017.1279271.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., M-a G. Martin, and F. Niroomand. 1998. “Exchange Rate Sensitivity of the Demand for Money in Spain.” Applied Economics 30 (5): 607–612. doi:10.1080/00036849100000060.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., I. Miteza, and A. Tanku. 2020. “Exchange Rate Changes and Money Demand in Albania: A Nonlinear ARDL Analysis.” Economic Change and Restructuring 53 (1): 1–15. doi:10.1007/s10644-019-09261-9.
   Google Scholar
• Bahmani-Oskooee, M., and R. C. W. Ng. 2002. “Long-Run Demand for Money in Hong Kong: An Application of the ARDL Model.” International Journal of Business and Economics 1 (2): 147.
   Google Scholar
• Bahmani-Oskooee, M., and H. Rehman. 2005. “Stability of the Money Demand Function in Asian Developing Countries.” Applied Economics 37 (7): 773–792. doi:10.1080/0003684042000337424.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., and G. Shabsigh. 1996. “The Demand for Money in Japan: Evidence from Cointegration Analysis.” Japan and the World Economy 8 (1): 1–10. doi:10.1016/0922-1425(95)00002-X.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., and A. Tanku. 2006. “Black Market Exchange Rate, Currency Substitution and the Demand for Money in LDCs.” Economic Systems 30 (3): 249–263. doi:10.1016/j.ecosys.2006.04.001.
   Google Scholar
• Bahmani-Oskooee, M., and A. Techaratanachai. 2001. “Currency Substitution in Thailand.” Journal of Policy Modeling 23 (2): 141–145. doi:10.1016/S0161-8938(00)00030-2.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., and Y. Wang. 2007. “How Stable is the Demand for Money in China?” Journal of Economic Development 32 (1): 21. doi:10.35866/caujed.2007.32.1.002.
   Google Scholar
• Bahmani-Oskooee, M., D. Xi, and S. Bahmani. 2016. “Asymmetric Effects of Exchange Rate Changes on the Demand for Money in China.” Applied Economics Letters 23 (15): 1104–1109. doi:10.1080/13504851.2015.1137540.
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., D. Xi, and S. Bahmani. 2019. “More Evidence on the Asymmetric Effects of Exchange Rate Changes on the Demand for Money: Evidence from Asian.” Applied Economics Letters 26 (6): 485–495. doi:10.1080/13504851.2018.1486979.
   Web of Science ®Google Scholar
• Baumol, W. 1952. “The Transactions Demand for Cash: An Inventory Theoretic Approach.” The Quarterly Journal of Economics 66 (4): 545–556. doi:10.2307/1882104.
   Web of Science ®Google Scholar
• Benati, L., and C. Goodhart. 2010. “Monetary Policy Regimes and Economic Performance: The Historical Record, 1979–2008.” In Handbook of Monetary Economics. Vol. 3, edited by B. M. Friedman and M. Woodford, 1159–1236. Amsterdam, The Netherlands: Elsevier.
   Google Scholar
• Ben-Salha, O., and Z. Jaidi. 2014. “Some New Evidence on the Determinants of Money Demand in Developing Countries–a Case Study of Tunisia.” The Journal of Economic Asymmetries 11: 30–45. doi:10.1016/j.jeca.2014.06.001.
   Google Scholar
• Brown, R. L., J. Durbin, and J. M. Evans. 1975. “Techniques for Testing the Constancy of Regression Relationships over Time.” Journal of the Royal Statistical Society: Series B (Methodological) 37 (2): 149–163. doi:10.1111/j.2517-6161.1975.tb01532.x.
   Web of Science ®Google Scholar
• Chowdhury, A. 1997. “The Financial Structure and the Demand for Money in Thailand.” Applied Economics 29 (3): 401–409. doi:10.1080/000368497327191.
   Web of Science ®Google Scholar
• Cuddington, J. T., and J. T. Cuddington. 1983. “Currency Substitution, Capital Mobility and Money Demand.” Journal of International Money and Finance 2 (2): 111–133. doi:10.1016/0261-5606(83)90010-4.
   Web of Science ®Google Scholar
• Domowitz, I., and I. Elbadawi. 1987. “An Error-Correction Approach to Money Demand: The Case of Sudan.” Journal of Development Economics 26 (2): 257–275. doi:10.1016/0304-3878(87)90029-0.
   Web of Science ®Google Scholar
• Dou, X., and S. Rossi. 2018. “The Determinants of Money Demand in China.” Cogent Economics & Finance 6 (1): 1564422. doi:10.1080/23322039.2018.1564422.
   Web of Science ®Google Scholar
• Frankel, J. 2010. “Monetary Policy in Emerging Markets.” In Handbook of Monetary Economics. Vol. 3, edited by B. M. Friedman and M. Woodford, 1439–1520. Amsterdam, The Netherlands: Elsevier.
   Google Scholar
• Goldfeld, S. M. 1989. “Demand for Money: Empirical Studies.” In Money, edited by J. Eatwell, M. Milgate, and P. Newman, 131–143. London: Palgrave Macmillan UK.
   Google Scholar
• Hafer, R. W., and A. M. Kutan. 1994. “Economic Reforms and Long-Run Money Demand in China: Implications for Monetary Policy.” Southern Economic Journal 60 (4): 936–945. doi:10.2307/1060431.
   Web of Science ®Google Scholar
• Hoffman, D., and R. H. Rasche. 1989. Long-Run Income and Interest Elasticities of Money Demand in the United States. Working paper No. 2949, National Bureau of Economic Research, Cambridge.
   Google Scholar
• Hossain, A. A. 2012. “Modelling of Narrow Money Demand in Australia: An ARDL Cointegration Approach, 1970–2009.” Empirical Economics 42 (3): 767–790. doi:10.1007/s00181-011-0452-5.
   Web of Science ®Google Scholar
• Hossain, A., and S. S. Ali. 1994. “The Search for a Stable Money Demand Function for Pakistan: An Application of the Method of Cointegration.” The Pakistan Development Review 33 (4II): 969–983. doi:10.30541/v33i4IIpp.969-983.
   Google Scholar
• Iftekhar, U., D. Mamoon, and M. S. Hassan. 2016. “Revisiting Determinants of Money Demand Function in Pakistan.” Journal of Economics Bibliography 3 (4): 559–569.
   Google Scholar
• Jawadi, F., and R. M. Sousa. 2013. “Modelling Money Demand: Further Evidence from an International Comparison.” Applied Economics Letters 20 (11): 1052–1055. doi:10.1080/13504851.2012.758835.
   Web of Science ®Google Scholar
• Johansen, S., and K. Juselius. 2009. “Maximum Likelihood Estimation and Inference on Cointegration—with Applications to the Demand for Money.” Oxford Bulletin of Economics and Statistics 52 (2): 169–210. doi:10.1111/j.1468-0084.1990.mp52002003.x.
   Web of Science ®Google Scholar
• Karfakis, C. I., and A. Parikh. 1993. “A Cointegration Approach to Monetary Targeting in Australia.” Australian Economic Papers 32 (60): 53–72. doi:10.1111/j.1467-8454.1993.tb00131.x.
   Google Scholar
• Khan, A. H. 1980. “The Demand for Money in Pakistan: Some Further Results.” The Pakistan Development Review 19 (1): 25–50. doi:10.30541/v19i1pp.25-50.
   Google Scholar
• Khan, A. H. 1994. “Financial Liberalisation and the Demand for Money in Pakistan.” The Pakistan Development Review 33 (4II): 997–1006. doi:10.30541/v33i4IIpp.997-1010.
   Google Scholar
• Khan, R. E. A., and Q. M. A. Hye. 2013. “Financial Liberalization and Demand for Money: A Case of Pakistan.” The Journal of Developing Areas 47 (2): 175–198. doi:10.1353/jda.2013.0034.
   Google Scholar
• King, M. 2001. “No Money, No Inflation the Role of Money in the Economy. Economic Policy Forum Does Money Still Matter?” Economie Internationale 88 (4): 111–131.
   Google Scholar
• Laidler, D. 1969. “The Definition of Money: Theoretical and Empirical Problems.” Journal of Money, Credit and Banking 1 (3): 508–525. doi:10.2307/1991204.
   Google Scholar
• Leventakis, J. A. 1993. “Modelling Money Demand in Open Economies over the Modern Floating Rate Period.” Applied Economics 25 (8): 1005–1012. doi:10.1080/00036849300000080.
   Web of Science ®Google Scholar
• Mahmood, H., and T. T. Y. Alkhateeb. 2018. “Asymmetrical Effects of Real Exchange Rate on the Money Demand in Saudi Arabia: A Non-Linear ARDL Approach.” Plos ONE 13 (11): e0207598 doi:10.1371/journal.pone.0207598.
   PubMed Web of Science ®Google Scholar
• Mangla, I. U. 1979. “An Annual Money Demand Function for Pakistan: Some Further Results.” The Pakistan Development Review 18 (1): 21–33. doi:10.30541/v18i1pp.21-33.
   Google Scholar
• Mccallum, B. T., and E. Nelson. 2011. “Money and Inflation: Some Critical Issues.” In Handbook of Monetary Economics. Vol. 3, edited by B. M. Friedman and M. Woodford, 97–153. Amsterdam, The Netherlands: Elsevier.
   Google Scholar
• Mckenzie, C. R. 1992. “Money Demand in an Open Economy.” Journal of the Japanese and International Economies 6 (2): 176–198. doi:10.1016/0889-1583(92)90013-T.
   Web of Science ®Google Scholar
• Mcnown, R., and M. S. Wallace. 1992. “Cointegration Tests of a Long-Run Relation between Money Demand and the Effective Exchange Rate.” Journal of International Money and Finance 11 (1): 107–114. doi:10.1016/0261-5606(92)90024-R.
   Web of Science ®Google Scholar
• Mishkin, F. S. 2009. “Globalization, Macroeconomic Performance, and Monetary Policy.” Journal of Money, Credit and Banking 41 (s1): 187–196. doi:10.1111/j.1538-4616.2008.00204.x.
   Google Scholar
• Moghaddam, M., and M. Bah. 2008. “The Money Demand Function in a Small, Open and Quasi-Monetary Economy: The Gambia.” Applied Economics 40 (6): 731–734. doi:10.1080/00036840600749649.
   Web of Science ®Google Scholar
• Moinuddin, 2007. “Choice of Monetary Policy Regime: Should SBP Adopt Inflation Targeting.” SBP Research Bulletin 5 (1): 1–30.
   Google Scholar
• Mundell, R. A. 1963. “Capital Mobility and Stabilization Policy under Fixed and Flexible Exchange Rates.” The Canadian Journal of Economics and Political Science 29 (4): 475–485. doi:10.2307/139336.
   Web of Science ®Google Scholar
• Muscatelli, V. A., and L. Papi. 1990. “Cointegration, Financial Innovation and Modelling the Demand for Money in Italy.” The Manchester School 58 (3): 242–259. doi:10.1111/j.1467-9957.1990.tb00421.x.
   Web of Science ®Google Scholar
• Nair, M., M. Samudram, and S. Vaithilingam. 2008. “Malaysian Money Demand Function Revisited: The ARDL Approach.” Journal of Asia-Pacific Business 9 (2): 193–209. doi:10.1080/10599230801981944.
   Google Scholar
• Narayan, P. K., S. Narayan, and V. Mishra. 2009. “Estimating Money Demand Functions for South Asian Countries.” Empirical Economics 36 (3): 685–696. doi:10.1007/s00181-008-0219-9.
   Web of Science ®Google Scholar
• Obben, J. 1998. “The Demand for Money in Brunei.” Asian Economic Journal 12 (2): 109–121. doi:10.1111/1467-8381.00055.
   Google Scholar
• Omer, M. 2009. “Stability of Money Demand Function in Pakistan.” SBP Research Bulletin 6 (2): 37–55.
   Google Scholar
• Omer, M., and O. F. Saqib. 2009. “Monetary Targeting in Pakistan: A Skeptical Note.” SBP Research Bulletin 5 (1): 53–81.
   Google Scholar
• Payne, J. E. 1992. “Money Growth and Interest Rate Volatility and the Demand for Money.” Journal of Economics and Finance 16 (1): 103–114. doi:10.1007/BF02919797.
   Google Scholar
• Pesaran, M. H., Y. Shin, and R. J. Smith. 2001. “Bounds Testing Approaches to the Analysis of Level Relationships.” Journal of Applied Econometrics 16 (3): 289–326. doi:10.1002/jae.616.
   Web of Science ®Google Scholar
• Poole, W. 1970. “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model.” The Quarterly Journal of Economics 84 (2): 197–216. doi:10.2307/1883009.
   Web of Science ®Google Scholar
• Qayyum, A. 2005. “Modelling the Demand for Money in Pakistan.” The Pakistan Development Review 44 (3): 233–252. doi:10.30541/v44i3pp.233-252.
   Google Scholar
• Shafiq, H., and W. S. Malik. 2018. “Money Demand Function Revisited: The Role of Asset Prices in Pakistan.” Pakistan Economic and Social Review 56 (1): 67–92.
   Google Scholar
• Shin, Y., B. Yu, and M. Greenwood-Nimmo. 2014. “Modelling Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Framework.” In Festschrift in Honor of Peter Schmidt, edited by R. C. Sickles and W. C. Horrace, 281–314. New York: Springer.
   Google Scholar
• State Bank of Pakistan. 2020. “Monetary Policy Framework.” http://www.sbp.org.pk/m_policy/mpf-02.asp
   Google Scholar
• Tobin, J. 1956. “The Interest-Elasticity of Transactions Demand for Cash.” The Review of Economics and Statistics 38 (3): 241–247. doi:10.2307/1925776.
   Web of Science ®Google Scholar