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Fractional cointegration and the demand for M1 / by Greg Tkacz.FB3-2/100-13E-PDF

This paper extends the long-run analysis of money demand into the sphere of fractional cointegration. This extension is motivated by the fact that traditional methods of cointegration analysis yield relationships that are not as stationary as they are believed to be. Our results demonstrate that money gaps arising from simple money-demand systems are at best fractionally integrated, and at worst random walks.--Conclusion

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Publication information
Department/Agency
  • Bank of Canada.
TitleFractional cointegration and the demand for M1 / by Greg Tkacz.
Series title
  • Bank of Canada working paper 1701-9397 2000-13
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Other formatsPhysical text-[English]
Note(s)
  • "This paper extends the long-run analysis of money demand into the sphere of fractional cointegration. This extension is motivated by the fact that traditional methods of cointegration analysis yield relationships that are not as stationary as they are believed to be. Our results demonstrate that money gaps arising from simple money-demand systems are at best fractionally integrated, and at worst random walks."--Conclusion.
  • The ISBN (0-662-29133-6) and ISSN (1192-5434) for the print edition have been incorrectly copied in this electronic publication.
  • Résumé en français.
Publishing information
  • Ottawa - Ontario : Bank of Canada June 2000.
Description32p.graphs, references, tables
ISSN1701-9397
Catalogue number
  • FB3-2/100-13E-PDF
Subject terms
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