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- W1987390811 abstract "Abstract The demand for money function occupies a central role in most theories of aggregate economic activity, especially in the formulation and execution of effective monetary policy. This paper examines the demand for money in the developing economy of Kenya. Special attention is paid to the model specification, its dynamic structure and to its temporal stability. The empirical results show that for both conventional definitions of money (the narrow and the broad), the theoretical model fits the Kenyan data quite well, and the proposed variables are all statistically significant and with the anticipated signs. The results further suggest, based on a battery of tests, that the estimated money demand equations for Kenya are temporally stable. Focus is also given to the open-economy nature of the money demand model, and the results indicate that some measure of foreign interest rates plays a significant role in the Kenyan money demand equations as potentially in any other money demand equation of an open economy. Monetary policy in Kenya, therefore, must take into account the response of domestic money demand to changes in such external factors." @default.
- W1987390811 created "2016-06-24" @default.
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- W1987390811 date "1985-10-01" @default.
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- W1987390811 title "The demand for money in a developing economy: The case of Kenya" @default.
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- W1987390811 doi "https://doi.org/10.1016/0305-750x(85)90034-8" @default.
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