IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/1990-042.html
   My bibliography  Save this paper

Economic Reform and the Demand for Money in China

Author

Listed:
  • International Monetary Fund

Abstract

Error correction models of the demand for a range of monetary aggregates in China are estimated with quarterly data for the period 1983–88. The estimated models fit the data reasonably well and appear to be relatively stable. Money demand is found to be sensitive to changes in expected inflation. In the case of currency, demand increases in the short term in response to an increase in expected inflation even though there is a fall in demand in the long run. A “cash-in-advance” explanation for this response pattern is suggested. It is also argued that the estimation results taken as a whole provide indirect evidence against the existence of substantial repressed inflation in China during the sample period. This is a working paper and the author would welcome any comments in the present text citatios should refer to a $$$n unpublished manuscript, mentioning the author and the date of issuance by the Internatinoal monetary Fund.

Suggested Citation

  • International Monetary Fund, 1990. "Economic Reform and the Demand for Money in China," IMF Working Papers 1990/042, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1990/042
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=27111
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Geneviève BOYREAU-DEBRAY, 1998. "Money Demand and the Potential of Seigniorage in China," Working Papers 199821, CERDI.
    2. Mookerjee, Rajen & Peebles, Gavin, 1998. "Endogenous money in China: Evidence and insights on recent policies," Journal of Asian Economics, Elsevier, vol. 9(1), pages 139-158.
    3. Feltenstein, Andrew & Jiming Ha, 1993. "An analysis of repressed inflation in three transitional economies," Policy Research Working Paper Series 1132, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:1990/042. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.