Prague Economic Papers 2002, 11(1):39-56 | DOI: 10.18267/j.pep.187

Selected factors influencing the money demand development in the czech republic in 1994 - 2000

Josef Arlt1, Milan Guba2, ©těpán Radkovský2, Vladimír Stiller2, Milan Sojka3
1 University of Economics, 4, W. Churchill Sq., CZ - 130 67 Prague 3 (e-mail: Arlt@vse.cz).
2 Czech National Bank, Na Příkopě 28, CZ - 115 03 Prague 1 (e-mail: Milan.Guba@cnb.cz; Stepan.Radkovsky@cnb.cz; Vladimir.Stiller@cnb.cz).
3 Faculty of Social Sciences of Charles University, Opletalova 26, CZ - 110 00 Prague 1 (e-mail: sojka@mbox.fsv.cuni.cz).

The demand for money represents one of the most important components of the transmission mechanism. Its analysis plays an important role in the decision-making process of central banks dealing with monetary policies. This paper follows a post-Keynesian approach to the analysis of the demand for money. The econometric analysis is based on the Arestis's model, adjusted for the conditions of the Czech Republic. The cointegration analysis on the basis of both the VAR and ADL models is applied. The premise is confirmed that the demand for money in the Czech Republic from 1994 - 2000 had developed in the long-run mostly under the influence of GDP and interest rate development. This conclusion is valid for balances in both real and nominal money.

Keywords: money demand, time series, econometric model, cointegration analysis
JEL classification: C22, C32, C51, C52, E41

Published: January 1, 2002  Show citation

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Arlt, J., Guba, M., Radkovský, ©., Stiller, V., & Sojka, M. (2002). Selected factors influencing the money demand development in the czech republic in 1994 - 2000. Prague Economic Papers, 11(1), 39-56. doi: 10.18267/j.pep.187
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