Open AccessMoney Demand In South Africa Revisited: A Detailed Analysis Of Different Models
Author(s) -
Ferdinand Niyimbanira
Publication year - 2013
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v12i4.7741
Subject(s) - disequilibrium , economics , demand for money , stock (firearms) , buffer stock scheme , speculative demand , demand curve , broad money , demand deposit , endogenous money , function (biology) , macroeconomics , econometrics , monetary economics , monetary policy , microeconomics , engineering , medicine , mechanical engineering , evolutionary biology , biology , ophthalmology
Many macroeconomists acknowledge the importance of behavior in a money demand relationship when formulating an efficient monetary policy. Many efforts have been made to estimate the money demand in function using many different specifications. This paper discusses South African empirical literature review of money demand. It revealed that different methods have been used to analyze the demand for money in South Africa, such as the linear function approach, the partial stock adjustment model, and the buffer stock disequilibrium money model. This study also discovered that few studies are done using co-integration and error correction methods and not all of these studies show that the money demand function in South Africa is stable. Implication for theory and practice, as well as area of future research, are also discussed in the study.