Testing the Stability of Money Multipliers for Croatia (CROSBI ID 694056)
Prilog sa skupa u zborniku | izvorni znanstveni rad | međunarodna recenzija
Podaci o odgovornosti
Benazić, Manuel ; Tomić, Daniel
engleski
Testing the Stability of Money Multipliers for Croatia
This paper analyses the stability of monetary multiplication process in Croatia and its forecasting ability. The money multiplier approach assumes that the monetary authorities are able to control the monetary base through money multipliers by affecting the money supply and the rate of inflation. Thus, by controlling the monetary base, monetary authorities can achieve the price stability. For implementing an effective and accurate monetary policy, money multipliers should be stable. The stability of money multipliers implies that different measures of money supply (i.e. different monetary aggregates) and reserve money are stationary or that different measures of money supply and reserve money are cointegrated. Therefore, the purpose of this paper is to test for the stationarity of money multipliers and to determine the long-run relationship between different monetary aggregates and reserve money for Croatia using monthly data in the period from 2011 to 2019 and the bounds testing (ARDL) approach for cointegration. The results of the unit-root tests indicate that money multipliers are non-stationary, therefore unstable and inappropriate for the short-run policy purpose. On the other side, the existence of stable cointegration relationships suggests the validity of the money multiplier model in the long-run.
money multipliers ; monetary aggregates ; stationarity ; cointegration ; Croatia
On-line Maribor, Slovenia, September 23-24.
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Podaci o prilogu
51-68.
2020.
objavljeno
10.18690/978-961-286-388-3.5
Podaci o matičnoj publikaciji
Organizations at Innovation and Digital Transformation Roundabout
Šprajc, P. ; Podbregar, I. ; Maletič, D. ; Tomić, D. ; Ziegler, Y. ; Uli, V. ; Arsenijević, O.
Maribor: Univerzitetna založba Univerze v Mariboru
978-961-286-388-3
Podaci o skupu
39th International Conference on Organizational Science Development
predavanje
23.09.2020-24.09.2020
online