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Demand For Money In Kazakhstan: 2000-2007

Author

Listed:
  • Yilmaz, Mesut

    (Suleyman Demirel University, Department of Economics, Almaty, Kazakhstan)

  • Oskenbayev, Yessengali

    (Center for Development Research, Bonn D-53111, Germany)

  • Kanat, Abdulla

    (National Analytical Center under the Government and National Bank of Kazakhstan, Almaty, Kazakhstan)

Abstract

This paper aims to investigate the demand for money in Kazakhstan. This study covers the period starting from 2000:01, when capital liberalization program was launched and the National Bank approved managed float regime (the National Bank employed adjustable exchange rate regime before exchange rate crisis in Kazakhstan in 1999) to 2007:12 as recent available data for investigation variables. In order to achieve the goal we set demand for money function is estimated using cointegration methodology aimed for variables integrated of order one. The results show important key factors for controlling money demand could be applied by the National Bank of Kazakhstan. Besides, there was reversal of currency in Kazakhstan over the period under investigation.

Suggested Citation

  • Yilmaz, Mesut & Oskenbayev, Yessengali & Kanat, Abdulla, 2010. "Demand For Money In Kazakhstan: 2000-2007," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 118-129, March.
    • Handle: RePEc:rjr:romjef:v::y:2010:i:1:p:118-129
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    References listed on IDEAS

    as
    1. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    2. Schwert, G William, 2002. "Tests for Unit Roots: A Monte Carlo Investigation," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 5-17, January.
    3. Girton, Lance & Roper, Don E, 1981. "Theory and Implications of Currency Substitution," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 13(1), pages 12-30, February.
    4. Subramanian S. Sriram, 2001. "A Survey of Recent Empirical Money Demand Studies," IMF Staff Papers, Palgrave Macmillan, vol. 47(3), pages 1-3.
    5. Sharon Eicher, 2004. "What Causes Bank Asset Substitution In Kazakhstan? Explaining Currency Substitution In A Transition Economy," William Davidson Institute Working Papers Series 2004-688, William Davidson Institute at the University of Michigan.
    6. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    7. Oomes, Nienke & Ohnsorge, Franziska, 2005. "Money demand and inflation in dollarized economies: The case of Russia," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 462-483, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rana Ejaz Ali Khan & Qazi Muhammad Adnan Hye, 2013. "Financial liberalization and demand for money: a case of Pakistan," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(2), pages 175-198, July-Dece.
    2. Alikhanov, Murat & Taylor, Leon, 2013. "An algorithm for estimating the volatility of the velocity of money," MPRA Paper 49313, University Library of Munich, Germany.

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    More about this item

    Keywords

    demand for money; currency substitution; reversed dollarization; Kazakhstan;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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