TY - JOUR
T1 - Money supply behaviour in emerging economies
T2 - A comparative analysis
AU - Badarudin, Zatul E.
AU - Khalid, Ahmed M.
AU - Ariff, Mohamed
PY - 2009
Y1 - 2009
N2 - This paper reports newevidence consistent with the post-Keynesian hypothesis of money endogeneity for hitherto unexplored 10 emerging economies. These results were obtained using a vector error correction model to test for long-run and short-run causalities with data from 1996 to 2007. The evidence suggests that money supply is endogenous in five countries, namely China, the Czech Republic, India, Malaysia and Turkey; it is exogenous in Mexico, while there was no causality found in Indonesia, Russia and Taiwan. Thailand showed endogeneity in the long-run causality. Some suggestions are made to explain the mixed results, and we also discuss the limitations arising from our narrow specifications of the money supply and the models.
AB - This paper reports newevidence consistent with the post-Keynesian hypothesis of money endogeneity for hitherto unexplored 10 emerging economies. These results were obtained using a vector error correction model to test for long-run and short-run causalities with data from 1996 to 2007. The evidence suggests that money supply is endogenous in five countries, namely China, the Czech Republic, India, Malaysia and Turkey; it is exogenous in Mexico, while there was no causality found in Indonesia, Russia and Taiwan. Thailand showed endogeneity in the long-run causality. Some suggestions are made to explain the mixed results, and we also discuss the limitations arising from our narrow specifications of the money supply and the models.
UR - http://www.scopus.com/inward/record.url?scp=70349998190&partnerID=8YFLogxK
U2 - 10.1080/13547860903169324
DO - 10.1080/13547860903169324
M3 - Article
AN - SCOPUS:70349998190
SN - 1354-7860
VL - 14
SP - 331
EP - 350
JO - Journal of the Asia Pacific Economy
JF - Journal of the Asia Pacific Economy
IS - 4
ER -