:: year 6, Issue 18 (winter 2014) ::
JMBR 2014, 6(18): 131-155 Back to browse issues page
The Effect of Financial Innovations in Bank Sector on Money Demand in Iran
Jahangir Biabani , Asghar Abolhasani, Nader Mehregan, Darush Hasanvand
Abstract:   (2445 Views)

In this study, the Relation of money innovations and money demand in Iran in the form of time series between 1959 and 2010 by ARDL method has been tested. Financial Innovations is a broad concept in Money Substitution whose main part is formed in bank section. Here, focusing on bank part (section), the effect of financial innovations on money demand is examined. Results show that in a given period in spite of Financial Innovations money demand is stable. Here are long run relations and consequently short – run dynamic adjustment toward equilibrium between money demand and inflation rate variable, GDP and Financial Innovations. Financial Innovations has negative effect on money demand in short and long run as a focused variable of the current study. The speed of model adjustment toward long–run one in both models is low. Also short-run elasticity of Financial Innovations is more than long run one.

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Type of Study: Empirical Study |
Received: 2014/11/27 | Accepted: 2014/11/27 | Published: 2014/11/27

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year 6, Issue 18 (winter 2014) Back to browse issues page