Εκτίμηση ζήτησης χρήματος σε χώρες της Ευρωπαϊκής Ένωσης
Τόκα, Αικατερίνη Ν.
Empirical money demand estimations are used by monetary authorities as a tool in designing their actions aiming mainly at the exercise of suitable monetary policy. Depending on the economic conditions of each period they have the appropriate means so that they can practice an expansive monetary policy in order to increase the quantity of money that circulates in the economy or a constringent monetary policy to decrease the quantity of money. According to Keynes (1936) the money demand is a function of the total income and the interest-rate. This dissertation examines the Keynes’ theory using the method of regression analysis for the Euro economy. Specifically in this paper the validation of Keynes’ theory is tested and also the elasticity of money demand with respect to the income and the interest-rate is estimated.