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Volume :24 Issue : 3 1996      Add To Cart                                                                    Download

The demand for money in UAE: Cointegration and error correction tests

Auther : Al-Swaidi Abdulla - Abdel-Hamed Bashir

This paper focuses on monetary dynamics in the United Arab Emirates using cointegration and error correction modeling . this approach examines the long – run trend relationships between economic variables in a system of short-run dynamic adjustment equations. The empirical results show how the money stock respond to changes in determinants of long –run money demand  . furthermore, the results indicate how the determinants of long –run money demand adjust to each other and changes in the money supply.

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