Modelling and Forecasting the Money Demand Under the Balance of Money Market and Commodity Market

Xian Kai HUANG;Shu Hui DENG

Systems Engineering - Theory & Practice ›› 2000, Vol. 20 ›› Issue (5) : 46-53.

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PDF(485 KB)
Systems Engineering - Theory & Practice ›› 2000, Vol. 20 ›› Issue (5) : 46-53. DOI: 10.12011/1000-6788(2000)5-46
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Modelling and Forecasting the Money Demand Under the Balance of Money Market and Commodity Market

  • Xian Kai HUANG,Shu Hui DENG
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Abstract

This paper mainly deals with the medelling and the forecasting of the money demand under the balance of money market and commodity market. Unlike the popular single equation ECM method, we imbed the money market in a system containing commodity market for investment, this full system approach results in a substaintial improvement in the prediction of the money market. By using of the Johansen reduced rank regression approach, we get two cointegration vectors corresponding to the long stable relationship amo...

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money demand / multiple cointegrating vectors / EC models

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Xian Kai HUANG , Shu Hui DENG. Modelling and Forecasting the Money Demand Under the Balance of Money Market and Commodity Market. Systems Engineering - Theory & Practice, 2000, 20(5): 46-53 https://doi.org/10.12011/1000-6788(2000)5-46
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