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Testing for the stability of Money Demand in Italy: has the Euro influenced the Monetary transmission Mechanism?

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  • Oreste Napolitano

    (Department of Economics Studies- Salvatore Vinci - PARTHENOPE - Università degli Studi di Napoli “Parthenope” = University of Naples)

Abstract

Stability of money demand is a crucial issue for the efficacy of monetary policy. This is particularly true in the presence of significant exogenous shocks to the monetary system. By implementing the most recent econometric testing procedures, this paper intends to investigate the consistency of the stability of money demand in Italy, one of the larger EMU countries, before and after the EMU. Among others, the objective is, indeed, to ascertain the effect of a change in the currency regime on the monetary aggregates and to provide a valid empirical model which is a viable tool for policy performance.

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  • Oreste Napolitano, 2011. "Testing for the stability of Money Demand in Italy: has the Euro influenced the Monetary transmission Mechanism?," Post-Print hal-00711447, HAL.
    • Handle: RePEc:hal:journl:hal-00711447
    DOI: 10.1080/00036846.2011.570719
    Note: View the original document on HAL open archive server: https://hal.science/hal-00711447
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    2. ALBULESCU, Claudiu Tiberiu & Pepin, Dominique, 2018. "Monetary Integration, Money-Demand Stability, and the Role of Monetary Overhang in Forecasting Inflation in CEE Countries," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 33(4), pages 841-879.
    3. Vittorio Daniele & Pasquale Foresti & Oreste Napolitano, 2017. "The stability of money demand in the long-run: Italy 1861–2011," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(2), pages 217-244, May.
    4. Haider Mahmood & Mohammad Asif, 2016. "An empirical investigation of stability of money demand for GCC countries," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(3), pages 274-286.
    5. Claudiu Tiberiu Albulescu & Dominique Pépin, 2018. "Money demand stability, monetary overhang and inflation forecast in the CEE countries," Working Papers hal-01720319, HAL.
    6. Nicholas Apergis, 2015. "Long-run estimates of money demand: new evidence from East Asian countries and the presence of structural breaks," Applied Economics, Taylor & Francis Journals, vol. 47(31), pages 3276-3291, July.
    7. Chaido Dritsaki & Melina Dritsaki, 2020. "The Long-run Money Demand Function: Empirical Evidence from Italy," International Journal of Economics and Financial Issues, Econjournals, vol. 10(1), pages 186-195.

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