The nexus between stock market value and demand for money in China
Bibliographic Data
| ID | 12918045 |
|---|---|
| Authors | Terence Tai‐leung Chong (0000-0001-6866-9382, Chinese University of Hong Kong, corresponding author), Xiaobing Zhang (0000-0002-9359-579X, Duke University) |
| Year | 2009 |
| Volume | 2 |
| Issue | 2 |
| Pages | 203-207 |
| Publication date | 2009-08-27 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | China Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 1753-8963 • E-ISSN: 1753-8971 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/17538960903083517 |
| OpenAlex | W1995911519 |
| Language | EN |
| References cited | 9 |
This paper examines the influence of the stock market development on money demand in China during the period 1994Q1–2007Q2. A long-run cointegration relationship is found between the real money demand, stock market capitalization, real GDP, real interest rate and the CPI. Specifically, we show that the development of the stock market has a positive impact on money demand in the long run. In the short run, however, a boom in the stock market will lower money demand. Our work can be considered as a complement to Baharumshah, Mohd, and Yol (2009)
Boom · Capitalization · China · Cointegration · Demand for money · Econometrics · Economics · Financial economics · Monetary economics · Monetary policy · Speculative demand · Stock (firearms · Stock market · Stock market bubble · Financial Markets and Investment Strategies · Market Dynamics and Volatility · Monetary Policy and Economic Impact
| Citation velocity | historical |
|---|---|
| Highly cited | No |