Currency Substitution via Expected Exchange Rate and Domestic Money Demand: An Empirical Analysis for Japan
In this paper the currency substitution hypothesis is tested empirically on the Japanese money demand, using monthly data from January 1977 to December 1989. Under a flexible exchange rate a rational economic agent forms currency portfolios for both transaction and speculative reasons for demandin...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English English |
| Published: |
Universiti Putra Malaysia Press
1996
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/3112/1/Currency_Substitution_via_Expected_Exchange_Rate_and_Domestic_Money.pdf |