M2 demand relation and effective exchange rate in Japan: a cointegration analysis

The paper examines whether M2 demand in Japan does not form a cointegrated system unless the effective exchange rate is included. We focus on testing statistical significance of the coefficient for the effective exchange rate in the long-run equilibrium M2 demand relation. Empirical results indicate that it is significant, which suggests that the effective exchange rate is necessary for Japanese M2 demand cointegration.

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Year of publication:	2000
Authors:	Yamada, H.
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 7.2000, 4, p. 229-232
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009207727