THE LAW OF DEMAND AND SUPPLY WITH THE CONNECTION OF MONEY
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Abstract
In this article there is more information about the law of demand and supply and the connection of them with the money. We present an empirical analysis of money demand, money supply, and monetary policy. Empirical models for velocity and forecast models for the money multiplier are estimated. Stability analysis reveals that structural stability of the demand for broad money after monetary union must be rejected; stability of the demand for narrow money can be accepted.. The increase in monetary control uncertainty caused by these adjustments did not, however, impede monetary targeting with reasonable precision.
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