Ghartey, Edward, E
Author Affiliation, Ana.
Department of Economics
Empirical evidence of structural invariance of money demand in Barbados
Ortiz, Edgar; Cabello, Alejandro
International symposium: Financial liberalization and financial innovations and risks at emerging markets
Place of Publication
Universidad Nacional Autonoma de Mexico
Date of Publication
Series Editor Role
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The class of conditional ECMs of money demand is well estimated for Barbados using the Newey and West's (1987) DLS. Wu-Hausman, Engle and Granger (1989) tests show price and real income to be weak-form exogeneity in the conditional ECM of money demand, although only the exogeneity of real income has power. Money is indeed endogenous in this class of ECM model for Barbados. The conditional ECM of money demand has structurally invariant parameters with real income and prices being super-exogenous, although only income has power and the class of conditional ECM of money demand obtained can be relied upon for monetary policy and forecasting.....