Premium
The Demand for Money in Greece: Further Empirical Results and Policy Implications
Author(s) -
Papadopoulos Athanasios P.,
Zis George
Publication year - 1997
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.00044
Subject(s) - economics , monetary policy , inflation (cosmology) , monetary economics , broad money , macroeconomics , demand for money , exchange rate , empirical evidence , work (physics) , mechanical engineering , philosophy , physics , epistemology , theoretical physics , engineering
In this paper we investigate the determinants and the stability of the demand for broad and narrow definitions of money in Greece. The demand for M2 has not been previously studied. The findings of the empirical work suggest that the demand for M1 is unstable. For M2 the results presented are not sufficiently unambiguous to provide a basis for a policy prescription in favour of the adoption of a monetary target. In terms of anti‐inflation policy efficiency, it is argued that a potentially better policy choice for Greece would be to join the exchange rate mechanism of the European Monetary System.