The relative stability of the European money demand function: The portfolio diversification effect

The hypothesis of the paper that the European money demand function is more stable than the money demand function of any single European country is based on the well known portfolio diversification principle. Econometric estimates of country specific and European money demand functions confirm the hypothesis for M1, and, with some qualifications, also for M3. The tests also confirm the portfolio theoretical reason given for the higher stability.

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Year of publication:	1995
Authors:	Läufer, Nikolaus K. A.
Publisher:	Konstanz : Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
Subject:	Geldnachfrage \| Portfolio-Management \| EU-Staaten

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Series:	Diskussionsbeiträge - Serie II ; 249
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	756466849 [GVK] hdl:10419/101526 [Handle] RePEc:zbw:kondp2:249 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10010397951