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Demand for money in Sri Lanka, 1952-2002

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  • Barry Reilly
  • Michael Sumner

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.

Suggested Citation

  • Barry Reilly & Michael Sumner, 2008. "Demand for money in Sri Lanka, 1952-2002," Applied Economics Letters, Taylor & Francis Journals, vol. 15(5), pages 343-347.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:5:p:343-347
    DOI: 10.1080/13504850600705943
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