| Sumario: | A study was conducted to explore aggregate money demand relationships in Canada, Germany, Japan, the U.S., and Britain by way of a two-step strategy for testing the null hypothesis of no conintegration against alternatives that are fractionally cointegrated. Findings revealed that the null hypothesis could not be rejected for Japan but that there was some evidence of fractional cointegration for Canada, Germany, the U.S., and Britain, where, however, the negative income elasticity detected is not theory-consistent. Findings implied that money targeting could serve as an appropriate policy framework for monetary authorities in Canada, Germany, and the U.S. but not for authorities in Japan or Britain.
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