| Sumario: | A study was conducted to investigate Canadian money demand functions with the application of new tests for cointegration and for cointegration-rank stability with unknown change point. Historical data starting in 1872 and shorter spans starting in 1957 and 1968 were analyzed. Findings revealed that a specification with M1 possesses the most rank stability and that, in full samples as well as in subsamples, the rank does not fall below one and cointegration is present at all times. Findings indicated, however, that for all samples additional cointegrating relations enter the vector error-correction system.
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