Comments on Money Demand in a Dollarized Economy: Evidence from Laos PDR.

This paper examine the causality among the dollarisation, the interest rate differential, and the exchange rate risk in Laos. It is mentioned that Autoregressive Distributed-lagged model (ARDL) approach to cointegration and a Granger causality test in a Vector Error Correction Model (VECM) for this purpose. The article find that no long-Term causality exists from the interest rate differential and the exchange rate risk to the dollarisation.