The Demand for Euros

@inproceedings{Arnold2010TheDF,
  title={The Demand for Euros},
  author={Ivo Arnold and Sebastian Roelands},
  year={2010}
}
This paper investigates the demand for euros using panel data for 10 euro area countries covering the period from 1999 to 2008. Monetary aggregates are constructed to ensure that money is a national concept by excluding deposits owned by non-residents and including external deposits owned by residents. Initial estimates of a standard money demand function yield income elasticities which are high in comparison with what is typically found in the literature. We next expand the money demand… CONTINUE READING