MONETARY UNCERTAINTY AND DEMAND FOR MONEY IN KOREA
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 3
Abstract
Friedman’s volatility hypothesis asserts that increased volatility of money supply can lower the velocity of money or increase the demand for money. Previous studies have tested this hypothesis by using data from a few industrialized countries. In this paper, we estimate the demand for money in Korea after including a measure of volatility of nominal money supply. We provide support for Friedman’s hypothesis in the short run as well as in the long run.
Authors and Affiliations
Mohsen Bahmani-Oskooee| The Center for Research on International Economics, The Department of Economics, University of Wisconsin-Milwaukee, Milwaukee, Sahar Bahmani| Department of Economics, University of Wisconsin-Parkside, Kenosha
Keywords
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