CHANGES IN STRUCTURE OF DEMAND FOR MONEY IN FOUR CRISIS AFFECTED ASIAN COUNTRIES I

Abstract

This paperperforms a comparative analysis on structures ofdemandfor money before and after the 1997 Asian Crisis by constructing cointegration and error-correction models, utilizing monthly observations under an open-economyframework. Thefindings postulate the differences in the nature oflong-run relationships in periods before and after the Asian crisis, as well as speed ofadjustment towards equilibrium among ASIA-4: Korea, Malaysia, the Philippines and Thailand. Interest ratepolicy interventions have no influence on short-run relationship of demandfor money function.