Dollarization and money demand stability in Bolivia

• Montero Kuscevic, Casto Martin ^[1] ; Martin, Darius Daniel ^[1]
  1. [1] American University of Beirut

     American University of Beirut

     Líbano

     
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 4, Nº. Extra 3, 2015 (Ejemplar dedicado a: Energy demand forecasting), págs. 116-122
• Idioma: inglés
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• Resumen

  • This paper investigates the long-run money demand stability in Bolivia over the period 1990-2014 using a variety of estimators, namely, dynamic OLS, fully modified OLS, and canonical co-integrating regressions. Our results are robust and reveal that long-run money demand instability has been reversed even with persistent inflation volatility. We also show that de-dollarization is associated with money demand stabilization.