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Dollarization and money demand stability in Bolivia

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  • Casto Martin Montero Kuscevic
  • Darius Daniel Martin

Abstract

This paper investigates the long-run money demand stability in Bolivia over the period 1990-2014 using a variety of estimators, namely, dynamic OLS, fully modified OLS, and canonical co-integrating regressions. Our results are robust and reveal that long-run money demand instability has been reversed even with persistent inflation volatility. We also show that de-dollarization is associated with money demand stabilization.

Suggested Citation

  • Casto Martin Montero Kuscevic & Darius Daniel Martin, 2015. "Dollarization and money demand stability in Bolivia," Economics and Business Letters, Oviedo University Press, vol. 4(3), pages 116-122.
    • Handle: RePEc:ove:journl:aid:10838
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/10838
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    References listed on IDEAS

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