Abstract

CHALUP CALMOTTI, Miguel Sebastiano  and  JURADO OSINAGA, Jaime Andrés. Demand for Money in Bolivia for the short-run (1995-2013). Revista de coyuntura y perspectiva [online]. 2017, vol.2, n.2, pp.105-144. ISSN 2415-0622.

Abstract In this document the determinants of the demand for money in Bolivia are evaluated. For this, it is analyzed what scale variable is better suited to the models to predict the demand for money, if real income (measured by GDP at constant prices) or consumption expenditure at constant prices. On the other hand the influences of certain variables of the opportunity cost of money are observed, such as bank interest rates, volatility of inflation and expectations of devaluation. For this purpose a sample of 76 quarterly observations is used, ranging from 1995 to 2013. The results show that real income is the scale variable that best fits the data, on the other hand, it was found that the deposit rate of banks to 180, acts as an opportunity cost of money in the short-run for Bolivia.

Keywords : Demand for money; real GDP; interest rate; inflation volatility.

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