@article{TheDemandforM2+:679,
      recid = {679},
      author = {McPhail, Kim},
      title = {The Demand for M2+, Canada Savings Bonds and Treasury  Bills},
      publisher = {Bank of Canada},
      address = {1993},
      pages = {1 online resource (v, 58 pages)},
      abstract = {This paper uses the Johansen methodology to test for the  existence of a stable long-run demand function for certain  broad measures of liquidity in Canada. We find strong  evidence of cointegration over the 1970-90 period between  real balances, output, an own-rate of interest, a competing  rate of interest and the rate of inflation. The strong  evidence in favour of cointegration presented in this paper  contrasts sharply with previously published research on the  demand for the broad monetary aggregates in Canada. This  difference can be attributed to three main factors. First,  allowing inflation to have long-run effects on the demand  for these broad aggregates appears to help in obtaining a  money-demand function that is stable through the 1980s.  Second, the Johansen tests for cointegration appear to be  more powerful than the residual-based tests which have  generally been used in previous research. Finally, allowing  for portfolio shifts between a broad measure of money  (M2+), treasury bill holdings and Canada Savings Bonds  appears to explain part of the downward shift in M2+ during  the 1982-84 period.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/679},
      doi = {https://doi.org/10.34989/swp-1993-8},
}