Demand for broad money in Singapore: does wealth matter?
We present a stable long-run relationship between real money balances and its determinants, including asset prices, to capture wealth effects. The major findings are, first, asset (housing) prices have a noticeable, positive, and a significant effect on the demand for broad money in Singapore. Devel...
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| Format: | Article |
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Springer
2015
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| _version_ | 1796974490512523264 |
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| author | Baharumshah, Ahmad Zubaidi Soon, Siew-Voon |
| author_facet | Baharumshah, Ahmad Zubaidi Soon, Siew-Voon |
| author_sort | Baharumshah, Ahmad Zubaidi |
| collection | UPM |
| description | We present a stable long-run relationship between real money balances and its determinants, including asset prices, to capture wealth effects. The major findings are, first, asset (housing) prices have a noticeable, positive, and a significant effect on the demand for broad money in Singapore. Developments in the housing market alter the structure of money demand and, so, may complicate the conduct of monetary policies. Second, no evidence of a monetary overhang is found, and the augmented wealth model passes a battery of diagnostic tests. Third, the results confirm that the estimated model is invariant to policy changes and, consequently, immune to the so-called Lucas critiques. |
| first_indexed | 2024-03-06T08:57:50Z |
| format | Article |
| id | upm.eprints-44251 |
| institution | Universiti Putra Malaysia |
| last_indexed | 2024-03-06T08:57:50Z |
| publishDate | 2015 |
| publisher | Springer |
| record_format | dspace |
| spelling | upm.eprints-442512023-11-15T04:12:33Z http://psasir.upm.edu.my/id/eprint/44251/ Demand for broad money in Singapore: does wealth matter? Baharumshah, Ahmad Zubaidi Soon, Siew-Voon We present a stable long-run relationship between real money balances and its determinants, including asset prices, to capture wealth effects. The major findings are, first, asset (housing) prices have a noticeable, positive, and a significant effect on the demand for broad money in Singapore. Developments in the housing market alter the structure of money demand and, so, may complicate the conduct of monetary policies. Second, no evidence of a monetary overhang is found, and the augmented wealth model passes a battery of diagnostic tests. Third, the results confirm that the estimated model is invariant to policy changes and, consequently, immune to the so-called Lucas critiques. Springer 2015 Article PeerReviewed Baharumshah, Ahmad Zubaidi and Soon, Siew-Voon (2015) Demand for broad money in Singapore: does wealth matter? Journal of Economics and Finance, 39 (3). pp. 557-573. ISSN 1055-0925; ESSN: 1938-9744 https://link.springer.com/article/10.1007/s12197-013-9267-x 10.1007/s12197-013-9267-x |
| spellingShingle | Baharumshah, Ahmad Zubaidi Soon, Siew-Voon Demand for broad money in Singapore: does wealth matter? |
| title | Demand for broad money in Singapore: does wealth matter? |
| title_full | Demand for broad money in Singapore: does wealth matter? |
| title_fullStr | Demand for broad money in Singapore: does wealth matter? |
| title_full_unstemmed | Demand for broad money in Singapore: does wealth matter? |
| title_short | Demand for broad money in Singapore: does wealth matter? |
| title_sort | demand for broad money in singapore does wealth matter |
| work_keys_str_mv | AT baharumshahahmadzubaidi demandforbroadmoneyinsingaporedoeswealthmatter AT soonsiewvoon demandforbroadmoneyinsingaporedoeswealthmatter |