The Impact of Banking Crises on Money Demand and Price Stability
The author empirically investigates the monetary impact of banking crises in Colombia, Chile, Denmark, Japan, Kenya, Malaysia, and Uruguay. She uses co-integration analysis and error correction modeling to research: 1) Whether money demand stabilit...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2000/03/437908/impact-banking-crises-money-demand-price-stability http://hdl.handle.net/10986/22356 |
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okr-10986-223562021-04-23T14:04:07Z The Impact of Banking Crises on Money Demand and Price Stability Martinez Peria, Maria Soledad BANKING CRISES CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CURRENCY DEMAND FOR MONEY DEREGULATION DEUTSCHE MARK DEVELOPED COUNTRIES ECONOMIC THEORY ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE ENDOGENOUS VARIABLES EQUATIONS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATES FINANCIAL INNOVATION GOVERNMENT BONDS GROWTH RATE INCOME INFLATION INFLATION RATE INTEREST RATE INTEREST RATES LABOR MARKETS M2 MONETARY AGGREGATES MONETARY AUTHORITIES MONETARY INDICATORS MONETARY POLICY MONEY DEMAND MONEY DEMAND FUNCTIONS MONEY DEMAND STABILITY MULTIPLIERS OUTPUT PRICE INFLATION PRICE STABILITY PURCHASING POWER PURCHASING POWER PARITY REAL WAGES STOCK PRICES T-BILLS UNEMPLOYMENT UNEMPLOYMENT RATE VOLATILITY WAGES The author empirically investigates the monetary impact of banking crises in Colombia, Chile, Denmark, Japan, Kenya, Malaysia, and Uruguay. She uses co-integration analysis and error correction modeling to research: 1) Whether money demand stability is threatened by banking crises. 2) Whether crises bring about structural breaks in the relationship between monetary indicators and prices. Overall, she finds no systematic evidence that banking crises cause money demand instability. Nor do the results consistently support the notion that the relationship between monetary indicators and prices undergoes structural breaks during crises. However, although individual coefficients in price equations do not seem to be severely affected by crises, crises can sometimes give rise to variance instability in price or inflation equations. 2015-07-31T15:39:17Z 2015-07-31T15:39:17Z 2000-03 Working Paper http://documents.worldbank.org/curated/en/2000/03/437908/impact-banking-crises-money-demand-price-stability http://hdl.handle.net/10986/22356 English en_US Policy Research Working Paper;No. 2305 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Chile Colombia Denmark Japan Kenya Malaysia Uruguay |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
BANKING CRISES CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CURRENCY DEMAND FOR MONEY DEREGULATION DEUTSCHE MARK DEVELOPED COUNTRIES ECONOMIC THEORY ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE ENDOGENOUS VARIABLES EQUATIONS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATES FINANCIAL INNOVATION GOVERNMENT BONDS GROWTH RATE INCOME INFLATION INFLATION RATE INTEREST RATE INTEREST RATES LABOR MARKETS M2 MONETARY AGGREGATES MONETARY AUTHORITIES MONETARY INDICATORS MONETARY POLICY MONEY DEMAND MONEY DEMAND FUNCTIONS MONEY DEMAND STABILITY MULTIPLIERS OUTPUT PRICE INFLATION PRICE STABILITY PURCHASING POWER PURCHASING POWER PARITY REAL WAGES STOCK PRICES T-BILLS UNEMPLOYMENT UNEMPLOYMENT RATE VOLATILITY WAGES |
| spellingShingle |
BANKING CRISES CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CURRENCY DEMAND FOR MONEY DEREGULATION DEUTSCHE MARK DEVELOPED COUNTRIES ECONOMIC THEORY ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE ENDOGENOUS VARIABLES EQUATIONS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATES FINANCIAL INNOVATION GOVERNMENT BONDS GROWTH RATE INCOME INFLATION INFLATION RATE INTEREST RATE INTEREST RATES LABOR MARKETS M2 MONETARY AGGREGATES MONETARY AUTHORITIES MONETARY INDICATORS MONETARY POLICY MONEY DEMAND MONEY DEMAND FUNCTIONS MONEY DEMAND STABILITY MULTIPLIERS OUTPUT PRICE INFLATION PRICE STABILITY PURCHASING POWER PURCHASING POWER PARITY REAL WAGES STOCK PRICES T-BILLS UNEMPLOYMENT UNEMPLOYMENT RATE VOLATILITY WAGES Martinez Peria, Maria Soledad The Impact of Banking Crises on Money Demand and Price Stability |
| geographic_facet |
Chile Colombia Denmark Japan Kenya Malaysia Uruguay |
| relation |
Policy Research Working Paper;No. 2305 |
| description |
The author empirically investigates the
monetary impact of banking crises in Colombia, Chile,
Denmark, Japan, Kenya, Malaysia, and Uruguay. She uses
co-integration analysis and error correction modeling to
research: 1) Whether money demand stability is threatened by
banking crises. 2) Whether crises bring about structural
breaks in the relationship between monetary indicators and
prices. Overall, she finds no systematic evidence that
banking crises cause money demand instability. Nor do the
results consistently support the notion that the
relationship between monetary indicators and prices
undergoes structural breaks during crises. However, although
individual coefficients in price equations do not seem to be
severely affected by crises, crises can sometimes give rise
to variance instability in price or inflation equations. |
| format |
Working Paper |
| author |
Martinez Peria, Maria Soledad |
| author_facet |
Martinez Peria, Maria Soledad |
| author_sort |
Martinez Peria, Maria Soledad |
| title |
The Impact of Banking Crises on Money Demand and Price Stability |
| title_short |
The Impact of Banking Crises on Money Demand and Price Stability |
| title_full |
The Impact of Banking Crises on Money Demand and Price Stability |
| title_fullStr |
The Impact of Banking Crises on Money Demand and Price Stability |
| title_full_unstemmed |
The Impact of Banking Crises on Money Demand and Price Stability |
| title_sort |
impact of banking crises on money demand and price stability |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2000/03/437908/impact-banking-crises-money-demand-price-stability http://hdl.handle.net/10986/22356 |
| _version_ |
1764450633847406592 |