International Journal of Accounting and Financial Reporting
Do Exchange Rate Changes Have Asymmetric or Symmetric Effects on the Demand for Money in the Gambia
Abstract
In trying to explain the relationship between exchange rate and demand for money researchers have applied different models. In this paper, we applied both the linear and nonlinear ARDL to check the effects of exchange rate changes on the demand for money (M1 and M2) in The Gambia. The result revealed that the demand for money is cointegrated with its determinants and have a stable short-run relationship. It also revealed that exchange rate changes have only short-run asymmetric effects on demand for money (M1 or M2) but don’t have long-run effects.
Full Text:
PDFDOI: https://doi.org/10.5296/ijafr.v9i4.15705
Refbacks
- There are currently no refbacks.
Copyright (c) 2019 Kebba Bah, Karamat Khan, Arif Taufiq Nurrachman Aziez, Ali Kishwar
This work is licensed under a Creative Commons Attribution 4.0 International License.
International Journal of Accounting and Financial Reporting ISSN 2162-3082
Copyright © Macrothink Institute
'Macrothink Institute' is a trademark of Macrothink Institute, Inc.
To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.