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The demand for currency in Malta

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  • Grech, Aaron George

Abstract

This article studies the demand for one particular component of the money stock, currency, in Malta in the light of the existing theoretical and empirical framework. In particular, it argues that the commonly applied analytical framework needs to be tweaked slightly for it to better explain the reasons underpinning the relatively high currency demand in Malta compared with other euro area countries.

Suggested Citation

  • Grech, Aaron George, 2014. "The demand for currency in Malta," MPRA Paper 53878, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53878
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    References listed on IDEAS

    as
    1. A. C. Pigou, 1917. "The Value of Money," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 32(1), pages 38-65.
    2. Mr. Subramanian S Sriram, 1999. "Survey of Literature on Demand for Money: Theoretical and Empirical Work with Special Reference to Error-Correction Models," IMF Working Papers 1999/064, International Monetary Fund.
    3. Phillip Cagan, 1958. "The Demand for Currency Relative to the Total Money Supply," Journal of Political Economy, University of Chicago Press, vol. 66(4), pages 303-303.
    4. Schneider, Friedrich, 2012. "The Shadow Economy and Work in the Shadow: What Do We (Not) Know?," IZA Discussion Papers 6423, Institute of Labor Economics (IZA).
    5. Gordon, Robert J, 1984. "The Short-run Demand for Money: A Reconsideration," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 403-434, November.
    6. Karen Caruana & Christopher Pace, 2013. "Household finance and consumption survey in Malta: main results of 2010 exercise," CBM Working Papers WP/02/2013, Central Bank of Malta.
    7. Guerino Ardizzi & Carmelo Petraglia & Massimiliano Piacenza & Gilberto Turati, 2014. "Measuring the Underground Economy with the Currency Demand Approach: A Reinterpretation of the Methodology, With an Application to Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 747-772, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Aaron G Grech, "undated". "The evolution of the Maltese economy since independence," CBM Working Papers WP/05/2015, Central Bank of Malta.
    2. Ellul, Reuben, 2017. "Correlation between Maltese and euro area sovereign bond yields," MPRA Paper 80795, University Library of Munich, Germany.
    3. Aaron G. Grech (ed.), 2015. "The evolution of the Maltese Economy since Independence," CBM Ebooks, Central Bank of Malta, edition 1, number 02.

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    More about this item

    Keywords

    money demand; currency; Malta;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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