Dollarization and money demand stability in Bolivia

Authors

  • Casto Martin Montero Kuscevic American University of Beirut
  • Darius Daniel Martin American University of Beirut

DOI:

https://doi.org/10.17811/ebl.4.3.2015.116-122

Abstract

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.

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Published

2015-11-10

How to Cite

Montero Kuscevic, C. M., & Martin, D. D. (2015). Dollarization and money demand stability in Bolivia. Economics and Business Letters, 4(3), 116-122. https://doi.org/10.17811/ebl.4.3.2015.116-122