LEADER 05410oam 22010574 450 001 9910825975003321 005 20240402051318.0 010 $a1-4623-0532-6 010 $a1-4527-5107-2 010 $a9786612843457 010 $a1-4518-7278-X 010 $a1-282-84345-1 035 $a(CKB)3170000000055285 035 $a(EBL)1608336 035 $a(SSID)ssj0000940075 035 $a(PQKBManifestationID)11528465 035 $a(PQKBTitleCode)TC0000940075 035 $a(PQKBWorkID)10949250 035 $a(PQKB)11241840 035 $a(OCoLC)608258066 035 $a(MiAaPQ)EBC1608336 035 $a(IMF)WPIEE2009131 035 $a(EXLCZ)993170000000055285 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aBroad Money Demand and Asset Substitution in China /$fGe Wu 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a1 online resource (32 p.) 225 1 $aIMF Working Papers 300 $aDescription based upon print version of record. 311 $a1-4519-1707-4 320 $aIncludes bibliographical references. 327 $aContents; I. Introduction; II. Recent Developments; Figures; 1. Actual and Targeted M2 Growth Rate, 1999-2007; 2. Renminbi Nominal Exchange Rate and REER, 1994-2008; 3. Currency Substitution and Expectation of Exchange Rate, 2003-07; 4. Number of Investor Accounts and Listed Securities on the Shanghai Stock Exchange, 1996-2008; III. A Model of Money Demand in China; A. Earlier Studies; 5. Household Holdings of Financial Assets, 2001-07; B. Model Specification; C. Integration and Cointegration Tests; Tables; 1. Unit Root Tests (ADF statistics); 2. Order of Vector Autoregressions 327 $a3. Cointegration Analysis D. A Dynamic Model of Money Demand; E. The Model's Properties; IV. Conclusion; Appendices; I. Data Definitions; 6. Data Series, 1994Q1-2008Q1; II. Unrestricted Error Correction Representation for Real Broad Money; 7. Actual and Fitted Values of the Money Demand Model; III. Statistical Properties of the Dynamic Model of Money Demand; 8. Residual Analysis; 9. Recursive Least-Squares Parameter Constancy (recursive estimates); 10. Recursive Least-Squares Parameter Constancy (t-values); 11. Other Recursive Least-Squares Constancy Statistics 330 3 $aRecent changes to China's financial system, in particular ongoing interest rate liberalization, gradual movement toward a more flexible exchange rate regime, and rapid development of capital markets, have changed substantially the environment in which monetary policy operates. In light of these changes, we estimate an error correction model using a General-to-Specific methodology and confirm that a stable broad money demand function exists taking proper account of asset substitution, with an income elasticity of less than unity. Current inflation is found to have a significant negative impact on the real money demand. However, money demand does not appear very sensitive to interest rates, possibly reflecting their partial liberalization. Changes in the exchange rate also do not affect money demand significantly, but expectations of a further renminbi appreciation since 2005 appears to induce more money demand. Stock prices are statistically insignificant despite recent investors' interest in equity markets. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/131 606 $aDemand for money$zChina 606 $aAssets (Accounting) 606 $aBanks and Banking$2imf 606 $aFinance: General$2imf 606 $aForeign Exchange$2imf 606 $aMoney and Monetary Policy$2imf 606 $aDemand for Money$2imf 606 $aInterest Rates: Determination, Term Structure, and Effects$2imf 606 $aGeneral Financial Markets: General (includes Measurement and Data)$2imf 606 $aMonetary economics$2imf 606 $aFinance$2imf 606 $aCurrency$2imf 606 $aForeign exchange$2imf 606 $aDemand for money$2imf 606 $aDeposit rates$2imf 606 $aCapital markets$2imf 606 $aExchange rates$2imf 606 $aExchange rate arrangements$2imf 606 $aMoney$2imf 606 $aInterest rates$2imf 606 $aCapital market$2imf 607 $aChina, People's Republic of$2imf 615 0$aDemand for money 615 0$aAssets (Accounting) 615 7$aBanks and Banking 615 7$aFinance: General 615 7$aForeign Exchange 615 7$aMoney and Monetary Policy 615 7$aDemand for Money 615 7$aInterest Rates: Determination, Term Structure, and Effects 615 7$aGeneral Financial Markets: General (includes Measurement and Data) 615 7$aMonetary economics 615 7$aFinance 615 7$aCurrency 615 7$aForeign exchange 615 7$aDemand for money 615 7$aDeposit rates 615 7$aCapital markets 615 7$aExchange rates 615 7$aExchange rate arrangements 615 7$aMoney 615 7$aInterest rates 615 7$aCapital market 676 $a338.2834 700 $aWu$b Ge$01635078 801 0$bDcWaIMF 906 $aBOOK 912 $a9910825975003321 996 $aBroad Money Demand and Asset Substitution in China$93978581 997 $aUNINA