623
Views
0
CrossRef citations to date
0
Altmetric
Research Article

How justified is abandoning money from monetary policy? Evidence from dynamically simulated ARDL

ORCID Icon &
Article: 2213015 | Received 27 Aug 2021, Accepted 19 Apr 2023, Published online: 31 May 2023

References

  • Adil, M. H., Haider, S., & Hatekar, N. R. (2020a). Empirical Assessment of Money Demand Stability Under India’s Open Economy: Non-linear ARDL Approach. Journal of Quantitative Economics, 18(4), 891–20. https://doi.org/10.1007/s40953-020-00203-1
  • Adil, M. H., Haider, S., & Hatekar, N. R. (2020b). Revisiting Money Demand Stability in India: Some Post-reform Evidence (1996–2016). The Indian Economic Journal, 66(3–4), 326–346. https://doi.org/10.1177/0019466220938930
  • Adil, M. H., Hatekar, N., Fatima, S., Nurudeen, I., & Mohammad, S. (2022). Money Demand Function. Journal of Economic Integration, 37(1), 93–120. https://doi.org/10.11130/jei.2022.37.1.93
  • Adil, M. H., Hatekar, N. R., & Ghosh, T. (2021). The Role of Money in the Monetary Policy: A New Keynesian and New Monetarist Perspective. In W. A. Barnett & B. S. Sergi (Eds.), Environmental, Social, and Governance Perspectives on Economic Development in Asia (pp. 37–67). Emerald Publishing Limited.
  • Adil, M. H., Hatekar, N., & Sahoo, P. (2020c). The Impact of Financial Innovation on the Money Demand Function: An Empirical Verification in India. Margin: The Journal of Applied Economic Research, 14(1), 28–61. https://doi.org/10.1177/0973801019886479
  • Adil, M. H., & Rajadhyaksha, N. (2021). Evolution of monetary policy approaches: A case study of Indian economy. Journal of Public Affairs, 21(1), e2113. https://doi.org/10.1002/pa.2113
  • Arango, S., & Nadiri, M. I. (1981). Demand for money in open economies. Journal of Monetary Economics, 7(1), 69–83. https://doi.org/10.1016/0304-3932(81)90052-0
  • Arrau, P., & De Gregorio, J. (1993). Financial innovation and money demand: Application to Chile and Mexico. The Review of Economics and Statistics, 75(3), 524–530. https://doi.org/10.2307/2109469
  • Bahmani-Oskooee, M., Bahmani, S., Kones, A., & Kutan, A. M. (2015). Policy uncertainty and the demand for money in the United Kingdom. Applied Economics, 47(11), 1151–1157. https://doi.org/10.1080/00036846.2014.993138
  • Bahmani-Oskooee, M., & Ng, R. C. W. (2002). Long-run demand for money in Hong Kong: An application of the ARDL model. International Journal of Business and Economics, 1(2), 147.
  • Ball, L. (2001). Another look at long-run money demand. Journal of Monetary Economics, 47(1), 31–44. https://doi.org/10.1016/S0304-3932(00)00043-X
  • Ball, L. (2012). Short-run money demand. Journal of Monetary Economics, 59(7), 622–633. https://doi.org/10.1016/j.jmoneco.2012.09.004
  • Banerjee, A., Dolado, J., & Mestre, R. (1998). Error‐correction mechanism tests for cointegration in a single‐equation framework. Journal of Time Series Analysis, 19(3), 267–283. https://doi.org/10.1111/1467-9892.00091
  • Barnett, W. A., Ghosh, T., & Adil, M. H. (2022). Is money demand really unstable? Evidence from Divisia monetary aggregates. Economic Analysis & Policy, 74, 606–622. https://doi.org/10.1016/j.eap.2022.03.019
  • Belongia, M. T., & Ireland, P. N. (2019). The demand for Divisia Money: Theory and evidence. Journal of Macroeconomics, 61, 103128. https://doi.org/10.1016/j.jmacro.2019.103128
  • Boutabba, M. A. (2014). The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy. Economic Modelling, 40, 33–41. https://doi.org/10.1016/j.econmod.2014.03.005
  • Breunig, C., & Busemeyer, M. R. (2012). Fiscal austerity and the trade-off between public investment and social spending. Journal of European Public Policy, 19(6), 921–938. https://doi.org/10.1080/13501763.2011.614158
  • Brown, R. L., Durbin, J., & Evans, J. M. (1975). Techniques for testing the constancy of regression relationships over time. Journal of the Royal Statistical Society, Series B, 37(2), 149–192. https://doi.org/10.1111/j.2517-6161.1975.tb01532.x
  • Deev, O., & Hodula, M. (2016). The long-run superneutrality of money revised: The extended European evidence.
  • Dekle, R., & Pradhan, M. (1999). Financial liberalization and money demand in the ASEAN countries. International Journal of Finance & Economics, 4(3), 205–215. https://doi.org/10.1002/(SICI)1099-1158(199907)4:3<205:AID-IJFE107>3.0.CO;2-G
  • De La Fuente, G. G., De La Horra, L. P., & Perote, J. (2020). The demand for Divisia money in the United States: Evidence from the CFS Divisia M3 aggregate. Applied Economics Letters, 27(1), 41–45. https://doi.org/10.1080/13504851.2019.1606403
  • Dickey, D. A., & Fuller, W. A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica: Journal of the Econometric Society, 49(4), 1057–1072. https://doi.org/10.2307/1912517
  • ECB. (2004). The Monetary Policy of the ECB. European Central Bank.
  • Friedman, M. (1970). A theoretical framework for monetary analysis. Journal of Political Economy, 78(2), 193–238. https://doi.org/10.1086/259623
  • Funke, N., & Thornton, J. (1999). The demand for money in Italy, 1861–1988. Applied Economics Letters, 6(5), 299–301. https://doi.org/10.1080/135048599353276
  • Goldfeld, S. M., Duesenberry, J., & Poole, W. (1973). The demand for money revisited. Brookings Papers on Economic Activity, 1973(3), 577–646. https://doi.org/10.2307/2534203
  • Goldfeld, S. M., Fand, D. I., & Brainard, W. C. (1976). The case of the missing money. Brookings Papers on Economic Activity, 1976(3), 683–739. https://doi.org/10.2307/2534372
  • Hossain, A. A. (2019). How justified is abandoning money in the conduct of monetary policy in Australia on the grounds of instability in the money‐demand function? Economic Notes: Review of Banking, Finance and Monetary Economics, 48(2), e12131. https://doi.org/10.1111/ecno.12131
  • James, G. A. (2005). Money demand and financial liberalization in Indonesia. Journal of Asian Economics, 16(5), 817–829. https://doi.org/10.1016/j.asieco.2005.08.003
  • Jonson, P. D. (1976). Money and economic activity in the open economy: The United Kingdom, 1880-1970. Journal of Political Economy, 84(5), 979–1012. https://doi.org/10.1086/260493
  • Jordan, S., & Philips, A. Q. (2018). Cointegration testing and dynamic simulations of autoregressive distributed lag models. The Stata Journal, 18(4), 902–923. https://doi.org/10.1177/1536867X1801800409
  • Judd, J. P., & Scadding, J. L. (1982). The search for a stable money demand function: A survey of the post-1973 literature. Journal of Economic Literature, 20(3), 993–1023.
  • King, M. (2001). No money, no inflation the role of money in the economy. Économie internationale, 4(4), 111–131. https://doi.org/10.3917/ecoi.088.0111
  • Kremers, J. J., Erksson, N. R., & Dolado, J. J. (1992). The power of cointegration tests. Oxford Bulletin of Economics and Statistics, 54(3), 325–347. https://doi.org/10.1111/j.1468-0084.1992.tb00005.x
  • Laidler, D. E. (1982). Monetarist perspectives. Harvard University Press.
  • Laidler, D. E. (1993). The demand of money: Theories, evidence and the problems. Harper Collins.
  • Mohanty, D. (2011). Changing contours of monetary policy in India. Speech by Shri Deepak Mohanty, Executive Director, Reserve Bank of India, delivered at the Royal Monetary Authority of Bhutan, Thimpu on.
  • Moosa, I. A. (1992). The demand for money in India: A cointegration approach. The Indian Economic Journal, 40(1), 101. https://doi.org/10.1177/0019466219920106
  • Murad, S. W., Salim, R., & Kibria, M. G. (2021). Asymmetric effects of economic policy uncertainty on the demand for money in India. Journal of Quantitative Economics, 19, 451–470.
  • Muralikrishna Bharadwaj, B., & Pandit, V. (2010). Policy reforms and stability of the money demand function in India. Margin: The Journal of Applied Economic Research, 4(1), 25–47. https://doi.org/10.1177/097380100900400102
  • Nelson, E. (2008). Why money growth determines inflation in the long-run: Answering the Woodford critique. Journal of Money, Credit, and Banking, 40(8), 1791–1814. https://doi.org/10.1111/j.1538-4616.2008.00183.x
  • Payne, J. E. (2003). Post stabilization estimates of money demand in Croatia: Error correction model using the bounds testing approach. Applied Economics, 35(16), 1723–1727. https://doi.org/10.1080/0003684032000152871
  • Pesaran, M. H., & Shin, Y. (1995). An autoregressive distributed lag modelling approach to cointegration analysis (Vol. 9514). Department of Applied Economics, University of Cambridge.
  • Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
  • Philips, A. Q. (2018). Have your cake and eat it too? Cointegration and dynamic inference from autoregressive distributed lag models. American Journal of Political Science, 62(1), 230–244. https://doi.org/10.1111/ajps.12318
  • Phillips, P. C., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335–346. https://doi.org/10.1093/biomet/75.2.335
  • Ramachandran, M. (2004). Do broad money, output, and prices stand for a stable relationship in India? Journal of Policy Modeling, 26(8–9), 983–1001. https://doi.org/10.1016/j.jpolmod.2004.08.008
  • RBI. (2014). Report of the Expert Committee to Revise and Strengthen the Monetary Policy Framework. Reserve Bank of India, Retrieved from: https://www.rbi.org.in/SCRIPTs/PublicationReportDetails.aspx?UrlPage=&ID=743
  • Romer, D. H. (2000). Keynesian macroeconomics without the LM curve. Journal of Economic Perspectives, 14(2), 149–169. https://doi.org/10.1257/jep.14.2.149
  • Taylor, J. B. (2009). The financial crisis and the policy responses: An empirical analysis of what went wrong. National Bureau of Economic Research. No. w14631
  • Thornton, D. L. (2014). Monetary policy: Why money matters (and interest rates don’t). Journal of Macroeconomics, 40, 202–213. https://doi.org/10.1016/j.jmacro.2013.12.005
  • Woodford, M. (2000). Monetary policy in a world without money. International Finance, 3(2), 229–260. https://doi.org/10.1111/1468-2362.00050