@article{Uncertainty:959,
      recid = {959},
      author = {Atta-Mensah, Joseph},
      title = {Money Demand and Economic Uncertainty},
      publisher = {Bank of Canada},
      address = {2004},
      pages = {1 online resource (v, 19 pages)},
      abstract = {The author examines the impact of economic uncertainty on  the demand for money. Using a general-equilibrium theory,  he argues that in a world inhabited by risk-averse agents,  who are constantly making portfolio decisions against a  backdrop of macroeconomic uncertainty, the demand for money  is a function of real income and interest rates, and an  index of economic uncertainty. The author then uses the  Johansen procedure of cointegration to estimate the  long-run stationary relationships between a Canadian  monetary aggregate (M1, M1++, and M2++) and the explanatory  variables. Allowing for an index of economic uncertainty to  enter the short-run dynamics of the estimated model, the  author obtains empirical results that show that, in  general, increased economic uncertainty leads, in the short  run, to a rise in the desired M1 and M1++ balances that  agents would like to hold. The impact of economic  uncertainty on M2++ is, however, observed to be negative.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/959},
      doi = {https://doi.org/10.34989/swp-2004-25},
}