چکیده:
This paper provides a critical review of the demand for money estimation. In doing so, first we explain the main effective factors on the demand for money on the light of monetarists, which those are: transaction demand for money and opportunity cost of holding money. Then I have done a short report about the existing studies on the demand for money in the Iranian economy and have a special attention to their defects and problems. Some of them are as follow :Including the wrong factors on the demand for money model which in turn it leads to double calculating the budget deficit, making mistake to compute the data regarding to data conversion, including a stationary variable on the co-integration regression, and as a result obtaining wrong magnitudes for some coefficients in the model and finally the lack of offering interpretation for
money income elasticity.
خلاصه ماشینی:
"Some of them are as follow: Including the wrong factors on the demand for money model which in turn it leads to double calculating the budget deficit, making mistake to compute the data regarding to data conversion, including a stationary variable on the co-integration regression, and as a result obtaining wrong magnitudes for some coefficients in the model and finally the lack of offering interpretation for money income elasticity.
09 ML DL Where: M3 stands for quasi money, BD for budget deficit, GB for government budget, R for real, M/P for real money stock (deflated by CPI), i for interest rate, p for inflation, B for black market rate or parallel rate, f for foreign, PC for per capita, E for expected, DL for double log, SL for semi-log, L for linear, A for annual, Q for quarterly, M for monthly, D for dummy variable in Iranian revolution, ML is maximum likelihood and OLS is ordinary least squares.
Bahmani-Oskooee suggested demand for money model as follows: RMt = a+ bYt + c Inft + d EXt + et (12) Where: M is the demand for real cash balances; Y is the real GDP, Inf is inflation, and EX is the exchange rate defined as the number of Iranian Rials per US dollar.
Esmaeelnia suggests the following model: (M1/p)t = ao+ a1 (M1/P)t-1 + a2 GDPt + a3 Extt + a4 Inf*t (14) where: M1/p is real narrow money demand, GDP is gross domestic product, Ext is exchange rate, Inf* is desired inflation, and all factors are in logarithm."