01958cas a2200241 a 4500 AALejournalIMF007749 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451975543 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Economic Reform and the Demand for Money in China. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Error correction models of the demand for a range of monetary aggregates in China are estimated with quarterly data for the period 1983-88. The estimated models fit the data reasonably well and appear to be relatively stable. Money demand is found to be sensitive to changes in expected inflation. In the case of currency, demand increases in the short term in response to an increase in expected inflation even though there is a fall in demand in the long run. A 'cash-in-advance' explanation for this response pattern is suggested. It is also argued that the estimation results taken as a whole provide indirect evidence against the existence of substantial repressed inflation in China during the sample period. This is a working paper and the author would welcome any comments in the present text citatios should refer to and unpublished manuscript, mentioning the author and the date of issuance by the Internatinoal monetary Fund. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1990/042 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/042/001.1990.issue-042-en.xml IMF e-Library