Testing the stability of money demand function in Lesotho
Testing the stability of money demand function in Lesotho is a scholarly work, published in 2018 in ''International Journal of Sustainable Economy''. The main subjects of the publication include monetary policy, real interest rate, Speculative demand, exchange rate, environmental economics, aggregate demand, econometrics, interest rate, real gross domestic product, Lesotho, broad money, long run and short run, inflation, monetary economics, cointegration, demand for money, demand curve, economics, income elasticity of demand, gross domestic product, Error correction model, -, macroeconomics, Distributed lag, rebound effect, and classical dichotomy. The paper adopts the autoregressive distributed lag (ARDL) bounds testing and error correction model (ECM) approach to co-integration to test the stability of demand for real money balances (M2) in Lesotho from 1980 to 2015.