German Monetary Unification and the Stability of the German M3 Money Demand Function

Bahmani-Oskooee M, Bohl MT


Abstract
This paper employs quarterly data from the whole of Germany to test the stability of M3 demand for money. The methodology is based on an application of the CUSUM and CUSUMSQ in the context of error-correction modeling and cointegration. The results reveal some instability in M3 money demand function.

Keywords
CUSUM; CUSUMSQ; Cointegration; M3; Germany



Publication type
Research article (journal)

Peer reviewed
Yes

Publication status
Published

Year
2000

Journal
Economics Letters

Volume
66

Issue
2

Start page
203

End page
208

Language
English

ISSN
0165-1765

DOI