More evidence on the asymmetric effects of exchange rate changes on the demand for money: evidence from Asian

2018 ◽  
Vol 26 (6) ◽  
pp. 485-495 ◽  
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Dan Xi ◽  
Sahar Bahmani
Keyword(s):  
Exchange Rate ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Exchange Rate Changes

scholarly journals Do Exchange Rate Changes Have Asymmetric or Symmetric Effects on the Demand for Money in the Gambia

2019 ◽  
Vol 9 (4) ◽  
pp. 276
Author(s):  
Kebba Bah ◽  
Karamat Khan ◽  
Artif Taufiq Nurrachman Aziez ◽  
Ali Kishwar
Keyword(s):  
Exchange Rate ◽  
The Gambia ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
On Demand ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Short Run ◽  
Exchange Rate Changes ◽  
The Relationship

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.

Asymmetric effects of exchange rate changes on the demand for money in China

2016 ◽  
Vol 23 (15) ◽  
pp. 1104-1109 ◽  
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Dan Xi ◽  
Sahar Bahmani
Keyword(s):  
Exchange Rate ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Exchange Rate Changes

scholarly journals Do Exchange Rate Changes have Symmetric or Asymmetric Effects on the Demand for Money in Korea?

2017 ◽  
Vol 9 (2) ◽  
pp. 155-168
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Jungho Baek
Keyword(s):  
Exchange Rate ◽  
Wealth Effects ◽  
Adjustment Process ◽  
Negative Effects ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Nonlinear Ardl ◽  
Long Run ◽  
The Exchange Rate ◽  
Exchange Rate Changes

Previous studies that included the exchange rate in the Korean demand for money assumed that the effects of the exchange rate changes are symmetric and adjustment process is linear. They found no significant effects. In this paper we apply Shin et al.’s (2014) Nonlinear ARDL approach to cointegration and error-correction modeling and test the symmetric versus asymmetric effects of exchange rate changes on the demand for money in Korea. Using quarterly data over the period 1973-2014, the results show that indeed the effects are asymmetric in the short run. In the long run, however, although the effects are symmetric but both won depreciation and won appreciation have significantly negative effects on the demand for money, supporting the wealth effects argument.

Do exchange rate changes have symmetric or asymmetric effects on the demand for money in Turkey?

2017 ◽  
Vol 49 (42) ◽  
pp. 4261-4270 ◽  
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Ferda Halicioglu ◽  
Sahar Bahmani
Keyword(s):  
Exchange Rate ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Exchange Rate Changes

scholarly journals On the Asymmetric Effects of Exchange Rate Changes on the Demand for Money: Evidence from Emerging Economies

2019 ◽  
Vol 18 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Sahar Bahmani ◽  
Ali M. Kutan ◽  
Dan Xi
Keyword(s):  
Exchange Rate ◽  
Emerging Economies ◽  
Emerging Countries ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Long Run ◽  
Exchange Rate Movements ◽  
The Exchange Rate ◽  
Exchange Rate Changes ◽  
Jel Classifications

Previous studies, that included the exchange rate in the demand for money function to account for currency substitution, assumed that exchange rate changes have symmetric effects on the demand for money in emerging countries. Since assuming symmetric effects implies using a linear model, they were not successful in finding significant link between the exchange rate movements and the demand for money. When we applied a nonlinear model to address the same issue, we found that in most emerging economies in our sample, exchange rate changes do have significant long-run effects on the demand for money and such effects are indeed asymmetric. JEL Classifications: E41, F31

Asymmetric effects of exchange rate on money demand in Nigeria: evidence from the new broad money aggregate (M3)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Udoma Johnson Afangideh ◽  
Tuwe Soro Garbobiya ◽  
Farida Bello Umar ◽  
Nuruddeen Usman ◽  
Victor Unekwu Ocheni ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Money Demand ◽  
Testing Procedure ◽  
Demand For Money ◽  
Content Type ◽  
Asymmetric Effects ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Exchange Rate Changes ◽  
Nonlinear Autoregressive

PurposeThis paper is focused on determining the asymmetric effects of exchange rate on money demand function in Nigeria.Design/methodology/approachIt employs the empirical model of Baumol–Tobin. Baumol (1952), which was founded on the opportunity and transaction cost of holding money. Monetary aggregates, M1, M2 and M3, are used for the real money balances based on the nonlinear Autoregressive Distributed Lag bound testing procedure.FindingsThe results indicate that the positive and negative partial sum of exchange rate changes differ in magnitude and size, supporting the hypothesis of asymmetric effects of exchange rate changes on the demand for money in Nigeria.Originality/valueThis is the first paper to consider the new broad money aggregate (M3).

DO EXCHANGE RATE CHANGES HAVE SYMMETRIC OR ASYMMETRIC EFFECTS ON INTERNATIONAL TRADE INTEGRATION?

2019 ◽  
Vol 14 (03) ◽  
pp. 1950013
Author(s):  
SURESH KUMAR OAD RAJPUT ◽  
NIAZ HUSSAIN GHUMRO ◽  
NADIA ANJUM
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Negative Impact ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Trade Integration ◽  
Asymmetric Effects ◽  
Long Run ◽  
Short Run ◽  
Exchange Rate Changes

This paper investigates whether exchange rate changes have symmetric or asymmetric effects on international trade integration, using quarterly time series data from 1980: Q1 till 2018: Q2. The recent innovation in cointegration techniques allows us to estimate nonlinear effects. We apply both linear autoregressive distributed lags (ARDL) and nonlinear ARDL models. The empirical results indicate that asymmetric relationship exists between exchange rate (REER) and international trade integration (ITI) in the short-run as well as in the long-run, meaning that real effective exchange rate has negative and statistically significant effects on international trade integration. Robustness checks indicate no role of various crisis including GFC on the relationship between ITI and REER, however, regime change has significantly negative impact in short-run and positive in long-run on ITI. The results are important because when we separate currency appreciation from the depreciation, it has the significant and different effects on international trade integration.

Sign in / Sign up

Export Citation Format

Share Document