1. DEMANDA POR DINERO EN MÉXICO (1986-2010).
- Author
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Noriega, Antonio E., Ramos-Francia, Manuel, and Rodriguez-Perez, Cid Alonso
- Subjects
- *
FINANCE , *COINTEGRATION , *PRICE inflation , *ECONOMIC forecasting - Abstract
This paper presents an econometric analysis of the demand for the monetary aggregate M1 for Mexico. Using cointegration techniques, we identify both a stable long-run relationship between M1 and its determinants, and a statistically sound single-equation error-correction model. Results are used to carry out the following simple applications: i) empirical determination of the value and stability of dual inflationary equilibria, given the observed seigniorage levels; ii) calculation of the seigniorage maximizing inflation rate, and iii) analysis of the potential relationship between a measure of excess money and inflation. Results indicate that the low inflation equilibrium is stable, and that the excess money indicator shows, in retrospective, some capacity in predicting inflationary pressures. [ABSTRACT FROM AUTHOR]
- Published
- 2011
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