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Policy Uncertainty and the Demand for Money in Canada: A Nonlinear Approach

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  4. Vol. 64, Issue 4
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Bahmani-Oskooee, M., Nayeri, M. Policy Uncertainty and the Demand for Money in Canada: A Nonlinear Approach. Applied Economics Quarterly, 64(4), 279-295. https://doi.org/10.3790/aeq.64.4.279
Bahmani-Oskooee, Mohsen and Nayeri, Majid Maki "Policy Uncertainty and the Demand for Money in Canada: A Nonlinear Approach" Applied Economics Quarterly 64.4, , 279-295. https://doi.org/10.3790/aeq.64.4.279
Bahmani-Oskooee, Mohsen/Nayeri, Majid Maki: Policy Uncertainty and the Demand for Money in Canada: A Nonlinear Approach, in: Applied Economics Quarterly, vol. 64, iss. 4, 279-295, [online] https://doi.org/10.3790/aeq.64.4.279
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Policy Uncertainty and the Demand for Money in Canada: A Nonlinear Approach

Bahmani-Oskooee, Mohsen | Nayeri, Majid Maki

Applied Economics Quarterly, Vol. 64 (2018), Iss. 4 : pp. 279–295

4 Citations (CrossRef)

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/aeq.64.4.279
Language
English
Pages
17

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€ 26.00 (incl. local VAT if applicable)

Author Details

Mohsen Bahmani-Oskooee, The Center for Research on International Economics and Department of Economics, University of Wisconsin-Milwaukee, Milwaukee, USA.

Majid Maki Nayeri, Department of Economics, University of Wisconsin-Milwaukee, Milwaukee, USA.

Cited By

  1. Effects of economic policy uncertainty and political uncertainty on business confidence and investment

    Montes, Gabriel Caldas | Nogueira, Fabiana da Silva Leite

    Journal of Economic Studies, Vol. 49 (2022), Iss. 4 P.577

    https://doi.org/10.1108/JES-12-2020-0582 [Citations: 31]

  2. POLICY UNCERTAINTY AND THE DEMAND FOR MONEY IN SINGAPORE: AN ASYMMETRIC ANALYSIS

    BAHMANI-OSKOOEE, MOHSEN | AFTAB, MUHAMMAD | BAHMANI, SAHAR

    The Singapore Economic Review, Vol. (2021), Iss. P.1

    https://doi.org/10.1142/S0217590821500697 [Citations: 0]

  3. Economic policy uncertainty, R&D expenditures and innovation outputs

    Tajaddini, Reza | Gholipour, Hassan F.

    Journal of Economic Studies, Vol. 48 (2020), Iss. 2 P.413

    https://doi.org/10.1108/JES-12-2019-0573 [Citations: 55]

  4. Asymmetric effects of economic policy uncertainty on demand for money in developed countries

    Nusair, Salah A. | Olson, Dennis | Al-Khasawneh, Jamal A.

    The Journal of Economic Asymmetries, Vol. 29 (2024), Iss. P.e00350

    https://doi.org/10.1016/j.jeca.2023.e00350 [Citations: 1]

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Abstract

Abstract

Economic uncertainty is said to affect the demand for money in either direction. We use the new comprehensive measure of policy uncertainty and assess its impact on the demand for money in Canada. When a linear model was used, we found only short-run effects of uncertainty on Canadian cash holdings. However, when a nonlinear model was used, the results revealed that increased policy uncertainty has negative effect on the demand for money in the long run but decreased uncertainty has no effect, a clear sign of an asymmetric response by the public.

JEL classifications: E41

Keywords: Canada, Money Demand, Policy Uncertainty, Asymmetry, Nonlinear ARDL

Table of Contents

Section Title Page Action Price
Mohsen Bahmani-Oskooee / Majid Maki Nayeri: Policy Uncertainty and the Demand for Money in Canada: A Nonlinear Approach 1
Abstract 1
1. Introduction 1
2. The Models and Methods 3
3. The Results 7
4. Concluding Remarks 1
Appendix: Data Definition and Sources 1
References 1

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